CAREER SERVICES
RESOURCES FOR STUDENTS CONSIDERING GRADUATE AND PROFESSIONAL SCHOOL

GRADUATE STUDY IN ECONOMICS


As you approach your senior year and begin to think about a career, you will consider what you can do with an economics major. In fact, your education has enabled you to develop useful analytical, quantitative and communications skills that should be attractive to employers in such areas as business, government, finance, consulting, education and law. For ideas, you might want to look at the positions take by recent Penn economics majors:
www.vpul.upenn.edu/careerservices/college/majors/econ.html


In addition, many of you will find that your economics majors have prepared you well for graduate study. B.A.s in economics have an excellent foundation for graduate training in law, business administration, public policy, international affairs, urban studies, environmental policy, health policy, development studies, to mention a few programs popular with economics majors. To check out the range of graduate programs attended by recent Penn economics majors, please go to:
http://www.vpul.upenn.edu/career ... s_by_major_2001.htm


Graduates who enter programs in these fields frequently work for 2-3 years before applying. Since several of the programs are professional or terminal masters, admissions committees generally prefer that applicants bring practical experience to the classroom, along with an obvious commitment to the field. In addition, it is important to do well on required standardized tests, to submit a strong transcript, 3 letters of recommendation addressing educational and work experience, and write well-reasoned, articulate admissions essays, including one that traces your background and why this is the right program for you at this point in time.


Graduate Programs in Economics

A few of you may have enjoyed your study of economics to such an extent that you may be considering becoming a professional economist. Economists work in a broad range of institutions - in business, government and academia. Typically they are credentialed with a master’s or a Ph.D. in the discipline.

For more information on business economics see The National Association for Business Economics website.

For ideas about the types of jobs available to economists working in government, see: www.usajobs.opm.gov and http://www.federalreserve.gov/careers/info.cfm?WhichCategory=1


Master’s of Economics

Individuals who are interested in working as an economist in government or business, especially starting out in the field, may want the generalist training of a master’s degree rather than the high level of specialization afforded by a Ph.D. A master’s is a degree frequently held by middle and top management in companies. Economists in business settings collaborate in teams with investment bankers, lawyers, accountants, treasurers, engineers and others.

It is important to note that the more prestigious economics graduate programs in the United States typically do not offer separate master’s degrees. Rather, they award a master’s degree a year or two after a student enters a doctoral program as part of the progression towards a Ph.D. If an individual has only a master’s degree from such a program, that means s/he did not complete the Ph.D. In Europe, however, there are numerous well respected master’s programs in economics, independent of doctoral programs. These may provide one with a useful credential work subsequently in the U.S., or for admittance into an American Ph.D. program.


For information on graduate programs in England see:

http://www.timesonline.co.uk/section/0,,3566,00.html


Typically, master’s programs strengthen training in economic theory and econometrics, teach how to conduct and evaluate research, and are often oriented towards policy development and analysis. Sometimes, individuals opt for a master’s if they are not sure they are ready for doctoral education and want to test the waters. Or, they may use it to strengthen an eventual candidacy for a Ph.D. with success at graduate level courses. Keep in mind, however, that in most places master’s degrees in the U.S. and abroad are not funded by university or departmental fellowships, so you will have to pay for the degree yourself, or have your education subsidized by a company or organization (and that is not easy to arrange.)


It is essential, when applying to graduate school in economics, that you to consult with faculty in the economics department with whom you have taken classes or done research, along with the undergraduate chair. They can tell you how to best prepare your candidacy (see also: http://www.econ.upenn.edu/Underg ... udyinEconomics.htm), and direct you to specific graduate programs suited to your interests. For further information about graduate programs in economics, see:

www.gradschools.com/listings/menus/econ_menu.html


Admittance to M.A. programs in economics is less competitive than to Ph.D. programs. Nevertheless, to be attractive, applicants should have completed intermediate level courses in micro and macro economics, in quantitative methods, and economic theory. At least one year of college-level calculus and linear algebra are also essential, along with statistics. Requirements vary by program and it is important to be especially clear about the required level of preparation in mathematics before applying.

Other factors to consider in admission: you should have a g.p.a. of 3.0 or above (the more competitive the program, the higher the average g.p.a.), along with a strong showing in the quantitative section of the GRE. Three to four letters of recommendation from faculty are in order, and a statement of purpose that explains your preparation and goals clearly.

A master’s in economics usually takes two years.* A survey conducted by the National Association for Business Economics (NABE) in 2000 found that business economists had a median base salary of $85,000 per year. Median base salary and additional compensation have doubled since 1980. Other information from the 2000 survey: the largest employers of business economists were consulting firms, government (central banks), financial institutions and the insurance industry.** In 2000, new economists with a master’s degree were most sought after at a starting salary of $44,995. By comparison, new Ph.D.s were able to command a starting salary of $59,988. (For more information, see “Careers in Business Economics” on the National Association for Business Economics website.

In the past five years, a sample of individuals with master’s from the Department of Economics at Penn shows that graduates have taken positions as Risk Analyst at PNC Bank; as economist at The Conference Board; as a member of the technical staff at Tellabs, Inc.; and as Assistant Secretary for Commerce for the Government of Hong Kong.


Ph.D. in Economics
Increasingly, the analytical demands and range of knowledge required of a professional economist are such that doctoral training is becoming imperative for advancement to the upper levels of a professional career in the field. A Ph.D. program is geared primarily to develop your skills as a research scientist, and the degree is, of course, essential for academic positions.
Achieving admission into a prestigious Ph.D. program is extremely challenging and requires extensive preparation in economic theory and mathematics. Students often underestimate the level of “mathematical maturity” that they need to enter and succeed in a doctoral program. (This includes, at a minimum, two years of calculus, courses in linear algebra, statistics, and real analysis – the latter is a junior plus level course in a math major’s curriculum.) In fact, quantitative skill is so crucial that a major in mathematics may best prepare a candidate for top-ranking economics programs. Student should also have taken undergraduate economics courses in micro and macro theory, and econometrics, at the highest level possible. (see http://www.econ.upenn.edu/Underg ... udyinEconomics.htm)

In addition to a strong record in the areas above, experience with research may make you attractive to admissions committees. One way to achieve this goal is to qualify for the honors program in economics and undertake an undergraduate thesis. Other factors that will help your candidacy: a strong G.P.A.(roughly 3.7 plus?), distinguished grades in your quantitative and theoretical courses, and GRE scores above 700 (close to 800 in the quantitative section. The analytical section of the GRE has recently been replaced with an essay and there is no longer a subject test in economics.)