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Black Collegian Career Center
Opportunities in Economics Abound for African-American Students
by
William M. Rodgers III, Ph.D.
Many
of you probably think that in order to be an economist you must believe that
markets rule, that the government and organized labor play little role in
solving societal problems. They only disrupt the fluid operation of markets. For
many of us, this view contradicts our personal experiences. Collective action
and the public sector have and will continue to be a major part of the
African-American experience. What
does this have to do with studying economics? Everything, because when you enter
your first economics course and see the instructor generate results that show
organized labor and the public sector’s ineffectiveness, you get turned off. A
second turnoff for many of you is the poor treatment of race in economics
curriculums. A third turnoff is the belief that to study economics, you must be
a math jock. These pedagogy deficiencies and perceptions drive you away.
Some of these are myths. Many economists demonstrate
that institutions help to foster social justice. Departments have gotten better
about their treatment of race. Yes, in today’s world obtaining a doctorate in
economics requires math proficiency, but the perception that you have to be a
math jock is wrong.
This essay demonstrates that becoming an economist,
although challenging, leads to personally and financially rewarding careers.
What
do economists do?
Simply put, economists use analytical and
statistical tools to study how society allocates its limited resources.
Professor Samuel L. Myers, president of the Association for Public Policy
Analysis and Management, says “the
very central issue of what constitutes the appropriate public response to
complex societal problems often boils down to economics.” The Federal tax cut
debate is a perfect example. Economists provided estimates of each proposal’s
impact.
What are the career opportunities for you in economics?
Before discussing job prospects, let’s discuss the
benefits of studying economics. A solid course of study gives you analytical
reasoning, quantitative and computing skills, the ability to write well and to
present material effectively. Economics also has broad applicability from
history to finance. Its applicability widens if combined with government,
computer science, sociology, or the interdisciplinary fields of public policy
and Black studies. Professor and National Economic Association President-Elect
Patrick Mason further amplifies this point. “Modern economists are concerned
with issues related to religion, family formation and change, social
construction of identity, educational quality, and most other issues that are
important to individuals, communities, and the nation,” said Mason.There are four major career paths in economics:
academia, private, public, and non-profit sectors. If you choose an academic
career, you will teach tomorrow’s leaders and solve today’s thorniest social
problems. Teaching at a college or university provides resources, institutional
support, and a platform from which to launch your work.
Dr. Bernard Anderson, University of
Pennsylvania’s Whitney Young professor and former assistant secretary of
Labor, believes that academic careers are one small piece of the puzzle to
achieving social justice. He asserts, “Career opportunities in academia are
important, but African-American economists also should seek opportunities in the
private sector and public service reaching out to social betterment
organizations like civil rights groups. They should also share their knowledge
and experience as economists to help illuminate economic issues for other
professionals and for the community at large.”
In the private sector,
which accounts for about 80 percent of jobs, entry-level positions as personal
bankers, investment performance analysts, strategy and finance analysts, and
consumer strategy analysts are a few of the occupations that await you. Other
related occupations are financial managers, financial planners, insurance
underwriters, actuaries, credit analysts, loan officers and budget analysts.
Government agencies are excellent places for young
economists. Again, these positions cut across a variety of fields. Of the
federal agencies, the Departments of Agriculture, Labor, and Commerce hire the
most economists. The Federal Reserve Bank or central bank of the United States,
which develops monetary and financial policy, also hires young economists. If
you are interested in economic development, Dr. Willene Johnson, U.S. executive
director of the African Development Bank (ADB), tells us that you might work at
her organization, a large international institution founded by Africans to
improve the well being of Africans. Economists at ADB work on educational, water
resource and agricultural issues and operate interdisciplinary teams that design
and oversee development projects.
Entry-level positions in the non-profit sector
exist in grass roots organizations and “Think Tanks.” The latter perform
research to support public policy positions, consequently spanning the political
spectrum. Professor Myers finds that “students with strong economics
backgrounds, who decide to go into public or non-profit sector jobs as policy
analysts, planners, managers or administrators, generally discover they rise to
the top of the crowd because their skills give them a comparative advantage and
they can contribute in unique ways to problem solving.”
Overall, the outlook for economists looks good.
According to the Bureau of Labor Statistics, in 1999, the average annual salary
was $61,550, with the typical entry-level wage ranging from $25,000 to $35,000.
Employment of economists is expected to grow at about as fast as the average for
all occupations through 2008, with the largest growth in the private sector:
research, testing and consulting firms.
Finally, an economics degree strengthens your
candidacy to professional school. The tools of economists are useful in the
study of law, public policy, and business. Law students use the Coase Theorem to
resolve property rights conflicts. Public policy students use benefit-costs
analysis to decide whether a project should be undertaken. Finance scholars
utilize portfolio theory to make investment decisions. All rely on statistical
analysis. So you can see, economics has few boundaries.
How do you develop a course of study and career path?
Now, how do you
develop a course of study and career path? You do this through coursework,
internships and employment. During your first two years, you take principles of
micro, macroeconomics and a statistics course. Should you take any mathematics?
My rule of thumb is, if you think there is any possibility of pursuing a
doctorate in economics, take calculus, linear algebra and differential
equations. These first two years might seem dry.
But, I can assure you that during your junior and
senior years, the coursework becomes much more enjoyable, although, that is
after you take intermediate micro and macroeconomics. Even though they are
abstract, these courses provide an important foundation for the field courses or
advanced topic courses that you will take. Because of its methodological and
statistical skills, one of the most useful courses in economics is econometrics.
Most programs do not require it, but if you choose to take this course,
employers will drool over you.
The most enjoyable courses are your field and
advanced courses. Field courses focus on specific areas of economics, such as
labor, public finance, industrial organization, and money and banking, applying
the analytical and statistical frameworks developed in your “core” courses.
Many departments offer advanced-topics courses/seminars. These courses typically
have small enrollments and their content is even narrower in scope than field
courses. Along with focusing on “real” world topics, these advanced topic
courses typically offer students the opportunity to write research papers,
providing you with excellent analytical and empirical writing samples for the
job market.
If you choose, you may complete your major at this
point, but a small fraction of your classmates will continue and write a senior
thesis. Participation is low because of the perception that you only write a
thesis, if you are enrolling into a doctoral program. The typical thesis student
I advise does not enroll directly into a doctoral program. Yet, he/she finds the
experience quite useful. It serves as a capstone experience to one’s college
career. It sharpens your analytical and research skills, and it serves as an
excellent source of conversation during job interviews.
While developing your theoretical and quantitative
skills in class is important, Dr. Margaret Simms, vice president for Research at
the Joint Center for Political and Economic Studies, reminds us that “the
demands of translating theory into practice are best understood through
experience and the knack for doing policy is not always a skill taught in
academic settings.” A variety of venues exist outside class in which you can
master your classroom coursework.
Typically, during the summer after your sophomore
year, employers will begin to feel that you meet the qualifications for their
internships and research analyst positions. These are wonderful opportunities to
reinforce what you learned during the school year and provide you with the
opportunity to see economists in action. The positions expose you to potential
thesis topics. Most important, internship and research analyst positions place
you in environments in which you can begin to develop a network of professionals
who will be advocates for your success.
How do you make this all happen?
First, start with
your Economics Department. Most departments have handbooks that describe the
major’s requirements, the faculty and their interests. Some may provide sample
courses of study for particular career objectives and a description of the jobs
and salaries of recent graduates. Also, once you declare economics as your
major, you should be assigned an advisor. At some institutions, you may have to
actively find an advisor. Professor Mason describes the ideal advisor as
“someone who is genuinely interested in promoting your professional and
personal development.” He or she needs to be able to give you advice and
suggestions on which courses to take and their timing, leads on summer job
opportunities, and general career guidance. He or she doesn’t necessarily have
to be a mentor, but a true advocate for your success.
Join your department’s economics club. If you don’t have one, then
start your own. Activities can range from invited speakers, group discussions,
and dinners to review sessions and tutoring. Also, join Omicron Delta Epsilon
(ODE), the profession’s Honor Society. Picking
a career in economics can be a daunting task, but using the strategy of Dr.
Stephanie Wilson, group vice president – International of Abt Associates,
Inc., will help. “Pick a growth industry. Pick a global industry. Remain
flexible to the opportunity of working outside of the traditional corporate
structure. Keep skills well toned and avoid ‘glass walls.’”
Your college’s career services center should come
in handy. Their role is to link you to potential employers through career fairs
and job postings. With the Internet, many additional resources are at your
fingertips. The U.S. Department of Labor’s Employment and Training
Administration-America’s Career InfoNet provides detailed information about
wages, employment trends, the education, knowledge, and skills required for most
occupations. Many organizations now advertise openings on the Internet and
describe the skills and backgrounds needed.
A number of organizations exist whose missions are to
increase the number of African Americans in economics and public policy. The
National Economic Association, founded over 30 years ago, maintains a Web site
with information about educational and employment opportunities.
The American Economic Association has been running
a “pipeline” program for over 25 years. The program brings together talented
students and provides a taste of the content and pace of graduate school. After
completion, you are then paired with a professional economist, who serves as
your mentor. The Association for Public Policy Analysis and Management runs a
program for undergraduates who are interested in pursuing a career in public
policy.
One comment that I consistently hear about these
programs is the deep satisfaction from being able to spend a significant period
of time with a critical mass of African-American scholars. Many professional
relationships and lifelong friendships are built as a result of these programs.Economics is one of the most
powerful careers any college student can pursue. It is relevant to so many
issues. If you asked me whether I would choose another path, the answer would be
a definite “no.” The analytical
training has enabled me to actively contribute to academic and policy debates on
a wide array of interesting social problems.
Given our economy’s continued move to an
information-based economy, economics provides you with an invaluable set of
lifelong quantitative skills, and with a mindset to be a lifelong learner.
A Few Resources for Economics Students
General Resources:
Resources for Economists on the Internet
http://rfe.wustl.edu/
Sample Economics Handbook for
Majors, Minors, and Interested Students
Department of Economics, The
College of William and Mary
http://www.wm.edu/economics/
The Review of Black Political Economy
http://giorgio.catchword.com/vl=55784761/cl=11/nw=1/rpsv/
catchword/tranpub/00346446/contp1-1.htm
The Journal of Economic Perspectives
http://www.aeaweb.org/jep/
The American Economist
http://www.cba.ua.edu/~ode/
Information on Careers in Economics and Business:
America’s Career InfoNet, U.S.
Department of Labor
http://www.acinet.org
African Development Bank
http://www.afdb.org
Department of Agriculture
http://www.usda.gov
Department of Commerce
http://www.commerce.gov
National Association for Business
Economics
http://www.nabe.com
Office of Personnel Management (OPM)
http://www.usajobs.opm.gov
World Bank
http://www.worldbank.org
Professional Associations:
National Economic Association
http://www.ncat.edu/~neconasc/
Committee on the Status of
Minorities in the Economics Profession (CSMGEP), American Economic Association
http://www.vanderbilt.edu/AEA/cmte.htm
Association for Public Policy
Analysis and Management
http://www.appam.org
Omicron Delta Epsilon
International Honor Society in Economics (ODE) http://www.cba.ua.edu/~ode/
Dr.
William M. Rodgers, III is an associate professor of economics at The College of
William and Mary and a former chief economist for the U.S. Department of Labor.
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