Is Economics a Good Major?
Been reading a lot of contradicting stuff. Some people say economics is a good degree for i-banking and others say a BA in economics is useless overall. At a school that doesn't offer a business major would it be better to study math or econ?
is a degree in econ worthwhile?
An economics degree is very worthwhile if you are considering a career on Wall Street. Banks will universally recognize that you are interested in business and the markets and as a liberal arts major you will learn more critical thinking than someone doing a traditional finance degree.
That being said, what you learn in economics will not have much importance to work in investment banking as you will not learn finance or accounting. Economics however can be helpful in markets-based careers as you will learn about macro events and how they impact different sectors of the economy and consumer / business behavior.
Check out a video on this topic below.
Bachelor of Science vs. Bachelor of Arts in Economics
Our users shared that there is a difference between a BS and a BA degree in finance as a BS degree will likely be more technical / analytical than BA. If your school offers a choice between the two – it is wise to select the BS degree in the interest of gaining a more quantitative background.
While most users feel that an economics degree is very useful - some have a different opinion. Our users shared that at the undergrad level, you are not learning the economics models at the post graduate level. Since the models are watered down, more of the education is focused on decision making. While this is a valuable skill - entry level jobs are light on decision making and heavy on technical work such as Big 4 audit jobs and investment banking which econ degrees will not prepare for you. That being said – most firms offer an extensive training program to get you up to speed on the basics of this technical work so econ majors will not be substantially disadvantaged.
Read More About Economics Degrees on WSO
- How useful is an undergrad Econ degree?
- Economics vs. Finance Major
- Math or Economics Major
- How Hard is Economics vs. Finance?
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its useless overall in the sense that you won't learning anything related to investment banking.. but if your school doesnt offer business then econ is the next best thing where it shows that your interested in how markets work and you have an analytical mindset.
math could also work..
Economics is probably the best bang for your buck- math does look better, but the hit to your GPA (since it's typically a tougher major) could hurt you if your grades drop from say a 3.8 to a 3.4 because you did math
It's "useless" in the fact that you'll most likely never directly apply any of the things you learned during school (but that's the case for many things). But in terms of practicality and marketability, it's a good major.
Not really. It's far more practical than art history and Harry Potter as some special individuals choose to major in
At my UG a BA in Econ is just about as useless you can get. A BS in Econ, however, is far more marketable than most that's offered here and success rate for grads with it is up with STEM majors.
There's not much attraction to a BSBA /w an emphasis on Econ here because it's basically a BA in Econ + business school marketing/management requirements.
despite the vast majority of econ grads not actually going to get their masters or phds in econ and becoming real economists, i would argue it's a very valuable degree. first, and most obviously, all banks agree that an econ degree demonstrates that the applicant has an interest in business and you won't have to explain why you're into banking/finance, as opposed to many other non-business majors.
second, i think it is actually of some value when looking at macro-driven events. the models you learn as an undergrad are definitely simplified versions of what phd students learn, and sometimes antiquated versions too, but i would argue that at least knowing how to start thinking about the cause and effect relationship between, for example, OPEC's activities in the 1970s and their effects versus what they are capable of doing now price-wise as it relates to elasticities of demand and whatnot, is actually pretty useful, or at the very least, interesting in my opinion .
third, although there are a wide variety of other majors where the same could be said, i think what a lot of employers value is the emphasis on analysis and drawing conclusions based on the information you are given (especially because it is number-heavy, albeit not too challenging math-wise for the most part).
i'm not trying to convince anyone to major in econ, but i think that on sites like WSO, or really any time a group of young people with little professional experience or appreciation for diversity who are looking for the set "path" to a certain type of job (I am not saying this in a patronizing way. I would still include myself in this category despite having been out of college and working for a little over a year) discuss finance, econ gets a bad rap as a major. it definitely doesn't teach the "hard" skills that a finance major does, but i think it teaches a valuable, but different, skill set in its own right.
Thanks for the feedback. For a little more background, I'll be going to a top LAC, where BSc's aren't offered either. So it's definitely possible to break into banking with an econ degree, right?
How good are you at math/quant? Is your SAT math score better or around 720? I'm asking because if you're actually good at it and willing to work hard, then computer science/math will look very good for MBA programs. If you aren't, then economics or finance is the second best option to something quant related when considering exit opportunities.
A BS, Master's, or PhD in econ is useless because you can't actually model human behavior to the specific level that neoclassicals pretend you can (it's not physics). A BA in econ is all you need to get the value of the subject, which is learning how to analyze the world around you in terms of cost-benefit trade-offs and understanding incentive structures.
I have a BA in economics and would say it's generally useless for getting an entry level job. This is because entry level positions tend to be decision-lite and technical heavy (audit at Big 4, analyst modelling at IBs). Since economics is all about teaching you proper decision-making, it is provides you with no skills for spots in which you are a commoditized workhorse. If I could go back again I would have double-majored in Econ and either Finance or Accounting. I have no regrets at all about the econ degree in that I am a much better decision maker for it, which will help at higher levels, but it won't help you land that first job.
Only do an econ single-major if you are coming from a target and the name of your school will get you the job. Otherwise, finance or accounting all the way.
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Learn to think analytically w/ your econ degree and learn about the market, investing corporate finance on your own time
Either major will still get you an interview with IB positions. They serve different utilities in their own right and you should choose the major you feel your strengths pair up with better.
What matters more in landing you an interview is strong GPA, work experiences that show progression/interest in the field of finance and extracurricular activities (leadership roles enhance your candidacy even more).
I did econ for undergrad. To be honest, it's 80% bullshit and 20% substance.
If I could go back to high-school graduation once more, I'd absolutely do a major such as psychology, philosophy, or history.
Why do you say it is bullshit?
econ is a good MINOR but for a MAJOR, you should go more technical (computer science engineering, math, statistics)
Depends on the school and their program. If the school you go to has an econ program that involves a good technical portion (ei. calculus, statistics, econometrics, etc.) I think it's hard to find another major that compares. If your econ program is mostly social-science based without the technical parts, I would say your better off doing something else.
i think its the best at schools without a business program. however, in certain countries it is frowned upon as candidates are perceived as "not being good enough" for business school. you have to spin it in a way that tells interviewers you chose this because you were generally interested in it and could still learn about business concepts and finance in other ways
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