Economics

Ever wondered what economists do? Leading economist and Head of the Department of Economics at Essex, Professor Carlos Carrillo-Tudela shares his insights and answers your top questions about economics degrees.

"Economics is the study of the production, distribution, and consumption of goods and services. But, at its core, economics is about understanding human behaviour. It's about how we make decisions with limited resources to satisfy our unlimited wants. By studying economics, you'll be able to interpret the very essence of our value system. It's a fascinating and hugely insightful discipline."

Some of the key economic concepts you will study at degree level include:

• Scarcity: The fundamental economic problem of having limited resources to satisfy unlimited wants.
• Choice: The decisions individuals, businesses, and governments make to allocate scarce resources.
• Incentives: The factors that motivate people to make certain choices.
• Markets: The places where buyers and sellers interact to exchange goods and services.

Economics is divided into two main branches:

• Microeconomics: Studies the behaviour of individual economic agents, such as households, firms, and markets.
• Macroeconomics: Analyses the economy in its entirety, focusing on factors like GDP, inflation, and unemployment.

Why study economics?

"It's a great question, and one many students are deliberating as they weigh the cost of higher education. Economics offers a versatile blend of analytical skills, economic theory, and real-world application. It can help open doors to a wide range of high-paying and influential careers."

Some of the key benefits of studying economics include:

• High earning potential: Graduates of economics consistently rank among the top earners.
• Strong job prospects: Economics is a versatile degree which you can apply in many diverse industries.
• Advanced critical thinking: You will learn how to analyse complex problems and make data-driven decisions.
• Make a global impact: You can contribute to economic policy and research at a challenging time in our economic outlook.

With years of experience teaching economics at degree level, Carlos shares his thoughts on the value and application of an economics degree:

"I've had the privilege of watching countless students graduate and thrive in diverse fields after studying economics at degree level. So, whether you're interested in understanding global markets, shaping economic policy, or building a successful career in finance, a degree in economics can provide the foundation you need to get ahead in a competitive job market."

Is economics a good degree?

"I get asked this a lot - of course I'm somewhat biased, but I believe that an economics degree remains one of the strongest choices you can make if you choose to pursue a university education. The field continues to be relevant and in-demand due to its broad applications across various industries and its ability to equip graduates with valuable skills."

Here are some reasons why economics can be a good degree choice:

• Promising financial rewards: Economics graduates often command competitive salaries.
• In-demand skills: Economics provides valuable skills like critical thinking, problem-solving, and data analysis, which are highly sought after by employers.
• Global relevance: Economics is a field with global implications, and understanding economic principles can help you navigate complex issues and make informed decisions.
• Career flexibility: An economics degree offers a versatile foundation for various career paths, allowing you to adapt to changing economic conditions.

Carlos is mindful when advising students on the worth of an economics degree:

"Whilst the job market can fluctuate, and it's certainly changeable at this point in time, economics graduates continue to be in solid demand. It's a very viable choice for those seeking a challenging and rewarding academic pursuit."

Unsure about studying economics? Professor Eric Smith, Director of Student Recruitment in the Department of Economics at Essex, offers insights into the challenges and rewards of the studying economics at university. With years of experience guiding students, Eric provides valuable advice on what to expect.

"Economics can be intellectually challenging, which is why it is often financially rewarding. Over the years, I have watched countless students arrive with initial uncertainty, only to flourish as they tackle challenging concepts and develop their skills."

There are several factors which determine how hard you may find an economics degree. They include:

• Your mathematical background: A strong foundation in mathematics, particularly calculus and statistics, is helpful.
• Your interest in the subject: If you find economics interesting and engaging, you may find it less difficult.
• The specific course: Some economics degrees may be more demanding than others.

There are a few areas which economics students often find challenging:

• Quantitative methods: Econometrics and statistical analysis can be tough for those without a strong mathematical background.
• Economic theory: Understanding complex economic concepts and models can be a challenge.
• Research: Conducting research and writing papers can be time-consuming and intellectually demanding.

"All students start their economics degrees with differing levels of knowledge and experience. It's what makes that undergraduate journey so special and unique. But with dedication, hard work and a passion for the subject, many students make exponential progress as they become more invested in the discipline."

Which qualifications do you need to study economics at university?

"Ah - the million dollar question. Grades are top of everyone's mind as they start to consider making a university application. While three GCSEs are typically the minimum requirement for an economics degree, specific subject and grade requirements can vary between universities and courses."

Some common requirements for an economics degree include:

• Strong academic record: Good grades in subjects like mathematics, statistics, and economics are often preferred.
• Entrance exams or interviews: Some universities may require standardised test scores or an interview process.
• English language proficiency: If you're an international student, you'll likely need to demonstrate proficiency in English (eg. IELTS, TOEFL).

Eric encourages students to consider an economics degree, even if they have concerns about their qualifications. Here is Eric's advice on how to research different universities and courses to find the best fit:

"Make sure you check the specific admission criteria, and take note of any additional requirements, such as coursework or work experience. If you're in doubt, try reaching out to the university - many institutions will be happy to offer personalised advice and guidance."

Do you need maths for an economics degree?

"A good understanding of mathematics is helpful if you're going to study economics at degree level. But don't worry if you're still learning - we can help you develop your skills if you're passionate and willing to commit."

How strong math skills can support a degree in economics:

• Quantitative methods: Economics heavily relies on mathematical tools like calculus, statistics, and linear algebra to analyse data and build models.
• Economic theory: Many economic theories and concepts are based on mathematical principles.
• Career prospects: A strong mathematical background can enhance your career opportunities in fields like finance and economics research.

Eric believes a strong mathematical foundation can benefit economics students, however he stresses not all economics degrees require advanced mathematical skills:

"The amount of maths needed to complete your economics degree will vary between universities and courses. Which is why it's important to choose a course that aligns with your interests and skills. For example, a BA in economics may require less advanced math in comparison to a BSc in economics."

What is the difference between BA economics and BSc economics?

"This is one of the most common questions I get asked by prospective students. Essentially, the difference between a BA and a BSc in economics can be found in the focus and mathematical content of the course."

Here's a brief outline of the differences between BA and BSc economics degrees:

• BA (Bachelor of Arts): Typically emphasises theoretical and qualitative aspects of economics, with a broader range of coursework. It may involve less mathematical content.
• BSc (Bachelor of Science): Often has a stronger emphasis on quantitative methods, statistics, and data analysis. It may require more mathematical proficiency.

Eric reminds students that each university will teach a different blend of quantitative and applied course content:

"The distinction between a BA and a BSc in economics can vary between universities. Some institutions may offer BA and BSc courses with similar content, whilst others have more pronounced differences. This is why it's important to do your research and really consider your desired outcome."

Which is better BSc economics or BA economics?

"Ultimately, your best choice will depend on your individual interests, strengths, and career goals. If you prefer a more philosophical and qualitative approach, a BA might be better choice for you. However if you have a strong mathematical background and you're drawn to quantitative analysis, a BSc could be a better fit."

Eric advises students to think carefully about their desired outcome and personal interests:

"Choosing a course that supports you and your interests is always prudent. It can be tempting to choose a degree based on prestige alone. But that is like choosing a branded pair of shoes without trying them on for size. Know yourself, take your time, and consider your goals - there are plenty of fantastic economics degrees to choose from."

Considering a career in economics? Professor Marco Francesconi gives the lowdown on career options for economics graduates. Marco is an influential economist, author, and the Director of Employability in the Department of Economics at the University of Essex.

"An economics degree can lead to many exciting and fulfilling career paths. It's a truly versatile degree with incredible upside potential. As society becomes increasingly data-driven, the demand for skilled economists will continue to grow."

Here are some popular sectors and jobs you can do with an economics degree:

Finance:

• Investment banking
• Financial analysis
• Risk management
• Hedge fund management
• Financial planning

Consulting:

• Economic consulting
• Management consulting
• Strategy consulting

Government:

• Economic policy analyst
• Budget analyst
• Public administration
• International development

Academia:

• Professor
• Researcher
• Policy analyst

Other:

• Data analyst
• Market research analyst
• Actuary
• Business analyst

When helping students get career-ready, Marco often advises they begin with a careful consideration of their economics degree focus:

"The specific job you pursue will often depend on your degree specialisation. Many of my econometrics students find themselves drawn to more data-driven roles. In contrast, my students whose degree includes a more qualitative focus - for example, development economics - tend to pursue careers in international organisations."

Who hires economists?

"That's a fantastic question because the answer isn't always obvious. Many applicants considering an economics degree think initially of career options involving banking or finance. However, the employment potential for economists is far broader. You'll find economists working everywhere, from tech companies to health care."

Economists are sought after by a wide range of organisations, including:

• Government agencies: Economic policy departments, central banks, regulatory bodies
• International organisations: World Bank, International Monetary Fund, United Nations
• Private companies: Financial institutions, consulting firms, multinational corporations
• Research institutions: Universities, think tanks, research centres
• Non-governmental organisations (NGOs): Economic development organisations, humanitarian agencies

Marco shares his insights about the day-to-day responsibilities of employment as an economist:

"Your specific role and responsibilities can vary depending on the organisation and the industry you find yourself in. However, economists are often found analysing economic data, conducting research, and providing expert advice on economic issues."

How much money does an economics undergraduate make?

"As the global economic outlook has tightened, students and parents are becoming more focused on salary outcomes post-graduation. This increased cost-benefit analysis is now an important part of the decision to continue higher education. The good news is economics offers a diverse employment landscape, which includes some very financially rewarding career paths."

The salary for an undergraduate economics graduate can vary significantly depending on several factors, including:

• Location: Salaries in major cities and financial centres tend to be higher.
• Industry: Finance, consulting, and technology often offer higher salaries.
• Experience: Salaries generally increase with experience and higher levels of academic qualifications such as a masters degree.

Marco carefully advises his students on how to maximise their future earning potential:

"Starting salaries for undergraduate economics graduates can vary widely. Many find themselves in well-paying positions. But don't forget - earning potential is contingent on several factors. Your career choice, geographical location, qualification level, and work ethic all play a role in determining your financial outcome. Generally speaking, the more advanced your education, the greater your career options and starting salary tend to be."

Which masters degrees can you study with an economics degree?

"For students that want to go all the way, you have a broad range of options ahead of you. Because an economics undergraduate degree provides such a strong foundation for learning, you can advance your studies in a number of ways."

Here are some popular masters degrees that complement an economics undergraduate degree:

Economics-related masters degrees:

• MA / MSc in Economics: Deepen your understanding of economic theory and quantitative methods.
• MA / MSc in Financial Economics: Specialise in financial markets, investments, and risk management.
• MA / MSc in International Economics: Focus on global economic trends, trade, and development.
• MA / MSc in Econometrics: Develop advanced quantitative skills for data analysis and modelling.

Complementary masters degrees for economics undergraduates:

• MBA: Gain business management skills to complement your economic knowledge.
• MA in Public Policy: Focus on policy analysis and implementation.
• MA in International Development: Explore economic development issues and strategies.
• MA in Management Economics: Study the economic aspects of managerial decision making.

Marco has helped countless students choose their academic path to support a future career goal. He offers some practical insight on how best to do this:

"Ultimately, your choice of higher education should support your career goals and personal interests. I often get asked which career makes the most money - a logical question if you're considering becoming an economist. However, I always encourage my students to consider their personal goals - not just their financial ones. Your interest level, passion, and determination can have a more profound and far-reaching impact on future earnings than your course choice."