The Business Economics Major

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If you wish you had known more before this economic recession hit and you find yourself brainstorming ways out of this mess, then perhaps pursing a Business Economics major is for you! At an economics college, you'll learn about many aspects of business, management, finance, marketing and corporate planning, in addition to the money management issues of today. The majority of people working in applied economics hold positions as forecasters, analysts, market researchers, government workers and client support personnel.

According to a 2002 National Association of Business Economics survey, 18.5% of the economics grads work for the government, 16% work for private consulting firms, 11.5% work in academia, 11.2% work for financial institutions and the remaining 42.8% work in other areas like scientific research and development services for other industries like agriculture, law, health care, etc. Economists, investment bankers, commercial bankers, corporate financial managers, stockbrokers, traders, financial securities analysts and administrative managers all have degrees in basic economics and business.

The Business Economics major is a great complement to another major or minor in business, political science, history, accounting or marketing. Economics not only studies economics research and economics financial systems, but also social issues like poverty, pollution, inflation, unemployment, recession and economic growth. Top market economists are analytical problem solvers who are useful in almost every major industry. They study how the optimal amount of production can be achieved to meet society's needs. They look at market forces that shape financial decision making. They look at how politics affect the commerce marketplace. They look at data to forecast, analyze trends and apply their understanding to a whole range of public issues.

How can we combat the problems of the economy going into the next decade, whether it's scarcity of employment, of budget capital or of energy? The Business Economics major has the innate ability to look at a pool of data and know what is to be done. These individuals are adept in business, politics, math, accounting and statistics. They work with the federal government, local governments, private firms, banks, hospitals, the stock market and a host of other fields. For people who want a secure, well-paying job, management economics is a wise field to choose.

To get an undergrad degree in Business Economics, students attending an accredited economics university will need to take courses like macro economics, microeconomics, financial accounting and reporting, calculus, economics statistics, econometrics, money/banking/credit, business writing, the stock market, labor economics, monetary economics, international trade theory, law and economics, industrial organization, economics and business strategy, organizational psychology, formal organizations and politics and the economy. Students should have a good understanding of math, politics and business. People often choose this major because they want a good job, they want to make a lot of money, they want to be a manager or CPA, they want to have a secure job or they want to get into a good graduate school.

The average starting salary for economists is $38,000 for a bachelor's degree, $48,000 for a master's and $70,000 for a PhD, according to a 2002 National Association of Business Economics survey. The median income for the economics major is higher than any other major, experts say. Economics research also suggests that economics majors earn 20% more than business administration majors, 19% more than accounting majors, 18% more than marketing majors and 15% more than finance majors. When a potential employer sees this major on a resume, he or she immediately understands that you have a solid foundation of math, politics, business and economic theory. Your degree also shows that you have the capacity to process complex subjects and problem solve, which is valuable in any field.

Many Business Economics majors go onto law school. Economics research shows that the economics majors consistently scored highest on the LSAT throughout the nineties. This is important because for every point scored on the LSAT, grads earn an additional $2,600 in salary their first year out of law school. Additionally, a 1998 Wall Street Journal article quoted UC-Berkeley admissions officer Edward Tom as saying, "Of all the majors, economics ranks in the top four or five consistently year after year for both applicants and offers made."

Many Business Economics majors go on to get their MBA. Richard Silverman, executive director of admissions at Yale, said: "The best people are more frequently taking economics as their major than they were a decade ago." He goes on to say "It shows they have the intellectual fire in the belly to perform well in an MBA program." Similarly, UC-Berkeley admissions officer Edward Tom added, "Of all the majors, economics ranks in the top four or five consistently year after year for both applicants and offers made." Compared to business administration, accounting, marketing and finance majors, the economics majors earn 15-20% more.

Upon graduating with a degree in Business Economics, one may work in government, business or education. People with four-year bachelor's degrees can get hired in many entry-level administration, consulting and management trainee jobs. Yet, those who wish to pursue a career as an actual "Economist" should pursue a Master's or PhD degree. Getting an advanced degree with as much math and accounting as possible is the best way to stand apart from the competition. According to the Bureau of Labor Statistics, the demand for someone with a degree in economics is projected to grow 7.5% by 2016.

Individuals with a degree in Business Economics have been recruited by employers like the California State Controller's Office, Cerner Healthcare Information Technology, Coca-Cola, Consolidated Graphics, Deloitte Services LP, Edward Jones, Enterprise Rent-A-Car, Ernst & Young LLP, General Mills, Inc., Insight, JPMorgan Chase & Co., Liberty Mutual Insurance Group (MA), Medix Staffing Solutions, PetSmart, Raytheon, Sherwin-Williams, Travelers Insurance and Wells Fargo Financial. The economics field is expected to grow 7% by 2016, adding another 16,000 workers. People with bachelor's degrees can get almost any entry-level job in business. Master's degree holders generally compete for sales and management trainee positions. Those who hold PhD degrees often go on to teach or become top market analysts in their fields.

According to US News & World Report, Harvard University in Boston, Massachusetts is the top-rated school for Business Economics. The second-best university in this field is Stanford in California and Northwestern University in Illinois. After the top-three, other economics college options include the University of Pennsylvania (Wharton) in Philadelphia, the Massachusetts Institute of Technology (Sloan) in Cambridge, the University of Chicago, UC-Berkeley in California, Dartmouth College in New Hampshire, Columbia University in New York City and Yale University in Connecticut. It's highly recommended that individuals looking to remain competitive in their field pursue advanced education with Master's or PhD's.