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The Economic Reward for Studying Economics

Author

Listed:
  • Dan A. Black
  • Seth Sanders
  • Lowell Taylor

Abstract

Undergraduate advisors in economics departments suggest that the study of economics is good preparation for a variety of careers, including economics, consulting, analysis, and administration, and they argue that economics is a solid prelaw or pre-MBA major. In this article we provide some empirical evidence about each of these contentions. We find that among college graduates who do not earn advanced degrees, economics majors generally earn more than similar individuals with other majors. We show also that among individuals who pursue graduate degree programs in business and law, economics majors earn more than undergraduate majors in most other academic disciplines. (JEL J31) Copyright 2003, Oxford University Press.

Suggested Citation

  • Dan A. Black & Seth Sanders & Lowell Taylor, 2003. "The Economic Reward for Studying Economics," Economic Inquiry, Western Economic Association International, vol. 41(3), pages 365-377, July.
    • Handle: RePEc:oup:ecinqu:v:41:y:2003:i:3:p:365-377
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    Citations

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    Cited by:

    1. Valerie Bostwick, 2016. "Signaling In Higher Education: The Effect Of Access To Elite Colleges On Choice Of Major," Economic Inquiry, Western Economic Association International, vol. 54(3), pages 1383-1401, July.
    2. Benito Arruñada & Xosé H. Vázquez, 2009. "Behavioral assumptions and management ability," Economics Working Papers 1157, Department of Economics and Business, Universitat Pompeu Fabra, revised Apr 2010.
    3. Freeman, James A. & Hirsch, Barry T., 2008. "College majors and the knowledge content of jobs," Economics of Education Review, Elsevier, vol. 27(5), pages 517-535, October.
    4. Tran, Tuyen Quang & Van Vu, Huong, 2020. "Wage earning differentials by field of study: Evidence from Vietnamese university graduates," International Journal of Educational Development, Elsevier, vol. 78(C).
    5. John V. Winters & Weineng Xu, 2014. "Geographic Differences in the Earnings of Economics Majors," The Journal of Economic Education, Taylor & Francis Journals, vol. 45(3), pages 262-276, September.
    6. Lisa Dickson, 2010. "Race and Gender Differences in College Major Choice," The ANNALS of the American Academy of Political and Social Science, , vol. 627(1), pages 108-124, January.
    7. O'Leary, Nigel C. & Sloane, Peter J., 2005. "The Return to a University Education in Great Britain," National Institute Economic Review, National Institute of Economic and Social Research, vol. 193, pages 75-89, July.
    8. David McClough & Mary Ellen Benedict, 2017. "Not All Education Is Created Equal: How Choice of Academic Major Affects the Racial Salary Gap," The American Economist, Sage Publications, vol. 62(2), pages 184-205, October.
    9. Philip R. P. Coelho & Tung Liu, 2012. "The Returns to College Education," Working Papers 201202, Ball State University, Department of Economics, revised Aug 2012.
    10. Robin L. Bartlett & Marianne A. Ferber & Carole A. Green, 2009. "Political Orientation and the Decision to Major in Economics: Some Preliminary Observations," International Review of Economic Education, Economics Network, University of Bristol, vol. 8(1), pages 13-31.
    11. Fan, Jing-bo & Zhang, Cheng-gang, 2015. "A study of the rate of return to higher engineering education in China," International Journal of Educational Development, Elsevier, vol. 42(C), pages 106-114.
    12. Joseph G. Altonji & Ling Zhong, 2021. "The Labor Market Returns to Advanced Degrees," Journal of Labor Economics, University of Chicago Press, vol. 39(2), pages 303-360.
    13. Grove, Wayne A. & Hussey, Andrew, 2014. "Returns to MBA quality: Pecuniary and non-pecuniary returns to peers, faculty, and institution quality," Labour Economics, Elsevier, vol. 26(C), pages 43-54.
    14. Akbari, Ather H. & Aydede, Yigit, 2013. "Economic Benefits of Studying Economics in Canada: A Comparison of Wages of Economics Majors with those in Other Disciplines Circa 2005," CLSSRN working papers clsrn_admin-2013-6, Vancouver School of Economics, revised 25 Feb 2013.
    15. John Jerrim & Anna Vignoles & Ross Finnie, 2012. "University access for disadvantaged children: A comparison across English speaking countries," DoQSS Working Papers 12-11, Quantitative Social Science - UCL Social Research Institute, University College London.
    16. Heisz, Andrew, 2003. "Cohort Effects in Annual Earnings by Field of Study Among British Columbia University Graduates," Analytical Studies Branch Research Paper Series 2003200e, Statistics Canada, Analytical Studies Branch.
    17. John V. Winters, 2016. "Is economics a good major for future lawyers? Evidence from earnings data," The Journal of Economic Education, Taylor & Francis Journals, vol. 47(2), pages 187-191, April.
    18. Thomas Carroll & Djeto Assane & Jared Busker, 2014. "Why it Pays to Major in Economics," The Journal of Economic Education, Taylor & Francis Journals, vol. 45(3), pages 251-261, September.
    19. Michael Simkovic & Frank McIntyre, 2014. "The Economic Value of a Law Degree," The Journal of Legal Studies, University of Chicago Press, vol. 43(2), pages 249-289.
    20. Philip R P Coelho & Tung Liu, 2017. "The Returns to College Education — An Analysis with College-Level Data," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 43(4), pages 604-620, September.
    21. Robst, John & VanGilder, Jennifer, 2016. "Salary and job satisfaction among economics and business graduates: The effect of match between degree field and job," International Review of Economics Education, Elsevier, vol. 21(C), pages 30-40.
    22. Hamermesh, Daniel S. & Donald, Stephen G., 2008. "The effect of college curriculum on earnings: An affinity identifier for non-ignorable non-response bias," Journal of Econometrics, Elsevier, vol. 144(2), pages 479-491, June.
    23. Daniel S. Hamermesh & Stephen G. Donald, 2004. "The Effect of College Curriculum on Earnings: Accounting for Non-Ignorable Non-Response Bias," NBER Working Papers 10809, National Bureau of Economic Research, Inc.
    24. Patricia M. Flynn & Michael A. Quinn, 2010. "Economics: Good Choice of Major for Future Ceos," The American Economist, Sage Publications, vol. 55(1), pages 58-72, May.

    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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