Career Path for Econometrics?
Hi, I am a Indian Citizen considering applying abroad next admissions cycle. The only STEM-OPT eligible courses at my target college - NYU Stern are Data Science and Econometrics. Since I do not have any knowledge about Data Science, what career paths can I focus on with Econometrics as a major if I also want to plan to get H1B Sponsorship? I have had difficulty finding out more about Econometrics as a career path, but the people I found on LinkedIn with Econometrics as a major in Stern have jobs at reputable companies like BlackStone and JP Morgan.
I am hoping that someone can provide more insight on the H1B process for companies post-college and what career paths I can take after college. Thank you for your time!
While you have econometrician jobs, the general idea is that through econometrics you learn to apply statistical methods to get at the causation between two (or more) variables. How best to translate a theoretical model into a system of regressions that will help you test its various predictions? But also, given the data that I have in front of me, how do I go about testing if A caused B, or B cause A, or there is a feedback between the two, or if C caused both A and B?
It's a good match with data science courses. You should also definitely take a couple economics classes to complement your understanding of econometrics.
As for careers, as a result you can go for any number of Economist jobs, where there is a heavy empirical component. Many in FAANG have Economist positions, some banks do too (whether retail / corporate / investment, though not all; I know UBS hires economists, as well as HSBC). You can also go for Economist/Econometrician roles at economic consultancies, as well as empirical economist roles at international orgs (although usually a PhD is the better way to get there).
Source: my 5 years doing a PhD in economics and teaching macroeconomics & econometrics
From what I read here, Econometrics seems to be a very theoretical subject, which I think would mean that it would not really gel well with any market sided role. I understand that being a Economist is a possible career path, but I would like to know more about the availability of market sided roles for Econometrics, or if it is even possible?
Well, Econometrics can be very theoretical, depending on how it's taught, but inherently it is meant to be an empirical subject.
As for more finance-oriented careers, objectively the only piece of econometrics you'll ever need is knowing how to do an OLS. You'll never have need for IV/ 2SLS / MLE, and all the other regression methods. It would be a bit like studying architecture to become a real estate agent. Some basics might be helpful, but by and large the bulk of the knowledge won't be helpful / relevant.
Although, now that I think about it, there are Quantitative Research roles at some HF (I believe?). those are actually fairly technical and pay well. Could be worth looking in the HF forum.
Lots of applicable market uses. Econometrics would be highly valued in general Sales & Trading, rates & currencies research, asset allocation, commodities research...basically anything other than classic "fundamental company research." This is the bread and butter (along with data science and subject matter expertise) of how practictioners come up with the "fair value" of oil, Mexican Peso, 10 year Japanese Government Bond and take appropriate buy/sell decisions for example
Econ Consulting?
I can't top DrApeman's comment, but wanted to reinforce the idea that econometrics ~ statistics ~ data science. I'd really look at the job market/career paths as though you had a stats degree or econ degree instead because roles that specifically list "econometrics degree" as a hard requirement tend to want PhDs only.
Econometrics is just using statistics (sometimes math-heavy) to specifically explore economics, there shouldn't be finance roles looking for fresh undergrads which prefer econometrics to stats degrees or vice versa. Maybe take a python course, only knowing tools like EViews or SAS or similar tools can be a difficult sell to roles which are not geared more to academics. You shouldn't be constrained from any entry-level finance job looking for a stats/STEM background.
Given the information you have given, I do not think that Econometrics will be a suitable course for me going forward. Thank you very much for your insight.
I had a previous life as a statistician where I lived and breathed econometrics. Now in banking whenever I have to run a regression I have to dumb it all down and turn a blind eye to some horrible models in the spirit of "this is what the MD is used to seeing and can easily understand".
I would advise against going for an Econometrics programme unless you're inclined towards a PhD.
The amount of efforts and mind numbing education you'll be receiving does not amount to the high pay.
Instead go for an offcampus Analyst role in a big 4 in india, if you're not able to bag it, then possibly a data science startup where you use Excel & SQL. You can try Accenture as well, they take Undergrad econs then business Analyst role at American Express and many more, undergrads do get somewhere I've seen them doing it checkout LinkedIn add every undergrad you see working with a cold email for a chat.
If you're from St. Stephen's, SRCC, LSR, Hindu, St. Xavier's, Loyola, Hansraj and similar it would be easy to bag a good job.
If you do not get anywhere in the corporate then getting into NITI Ayog (need good GPA) could be an option.
Alternatively, if nowhere else then lots of Research Associate positions for guys and professors from Yale, Harvard, MIT and similar comes to India(check poverty action lab, they're all noble laureate) and undergrads are able to bag that, establishing good connections that can later transform into solid LORs would be added advantage.
Seriously, get into workforce, get a known tag, get a high GMAT score and aim for an MBA down the line in 2-4 years.
Avoid Econometrics unless you're 100% passionate about it, want to work for central bank, world bank etc. MBA would always be a superior degree with stellar ROI with tons of roles.
Source: I was undergrad Econ and now work at a top BB.
I graduated from the said school. You can do a double major in finance and econometrics/data science. Finance is not a very demanding major at Stern and it won't be very difficult for you to do a double major in these two.
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