Academics
Graduate School in Economics
Recent economics majors have gone on to pursue a Ph.D. in economics at some of the top institutions in the country, including Northwestern, Illinois, Iowa, and Wisconsin. This page is designed to answer some questions concerning graduate school in economics. Below we discuss possible careers that one can pursue with a Ph.D. in economics, what undergraduate preparation is needed for graduate school, the application process, tips for taking the GRE (Graduate Record Examination), and what to expect in graduate school. We also include a ranking of the top 25 graduate schools along with links to their webpages.
- Research universities and think-tanks.
- Research a lot; teach a little.
- Economics Ph.D.s hired by the top universities are paid well over $100,000. Lower-ranked state institutions pay around $75,000.
- All policy think-tanks like the Brookings Intitution and the American Enterprise Institute hire economics Ph.D.s
- Liberal arts colleges.
- Research a little; teach a lot.
- Ph.D.’s hired by liberal arts colleges are paid well under $100,000, but look at the smiles on your professors’ faces. It is hard to beat being a professor at a liberal arts college.
- Government
- The Treasury, Census Bureau, Bureau of Labor Statistics, Congressional Budget Office, the Federal Reserve Board and its regional banks, and almost all government agencies employ economics Ph.D.s.
- State governments also employ economics Ph.D.s, usually to estimate tax revenues and to help set local or regional economic policy.
- Business
- Large corporations, consulting firms, and financial institutions all hire economics Ph.D.’s, and all pay very well.
- Most graduate programs require you to have taken Calculus I, Calculus II, and Linear Algebra. If you are missing any of these and you are a senior, take them in the spring and be sure to indicate on your application that you will be taking it.
- If you are an economics major and have taken the necessary math classes, then take some economics electives that introduce a lot of economic theory such as Advanced Macro, Econometrics, Industrial Organization, International Trade Theory and Policy, Labor, or any senior seminar course.
- If you are not an economics major, it is probably a good idea to take Intermediate Macro and Intermediate Micro just to know some economics before starting graduate school.
- Select 6 to 12 places to apply to.
- Be realistic with where you are willing to go.
- Be realistic with your interests and career goals.
- Be realistic with your abilities: aim high (and low).
- Applications are usually due between November and January.
- Early applicants are more likely to be accepted and to receive financial aid.
- Apply to one place at a time, making sure to complete all parts of the application.
- Be sure to have someone else read all personal statements.
- Always apply to the Ph.D. program. Regardless of where you go, the first year of the Ph.D. program will be the same as the Master’s program. Moreover, most schools give funding to Ph.D. candidates only, not to Master’s candidates.
- The Career Advancement Center on campus runs a workshop each fall covering applications, essays, deadlines, and letters of recommendations. Contact them at x5235 to register.
GRE (www.gre.org):
- You must take the GRE general test and submit your scores with your applications. You may take the Economics Subject test, but it is unnecessary.
- Each fall the Career Advancement Center invites people from Kaplan Testing Services to campus to administer a practice GRE to any student who wants to take it.
- The practice test is usually in mid to late October, and you must pre-register either with Kaplan or with CDC (x5235).
- All juniors who are contemplating graduate school in any field should take advantage of this opportunity.
- Seniors may want to take the practice test and then take the test for real in early November.
- Study for the GRE. A little bit of practice can help immensely. A lot of practice can mean the difference between paying for your first year and receiving financial aid.
- Take the GRE as soon as you are prepared; it would be best to take it by mid October, but you can take it as late as November. You can take the GRE anytime, so if your first scores are not as high as you would like, you can study more and take it again.
- Typical Scores are:
Top 5 Graduate Schools:
Top 15 Graduate Schools:
Top 50 Graduate Schools:800 Math,
750 Math,
700 Math,700 English
620 English
550 English - Hints:
- The GRE is computerized, and how you do on question n will determine what your n+1 question is.
- It is recommended that you buy and work through a GRE review book that comes with a CD to give you experience in taking the computerized test.
- Answering the first several questions is critical on the GRE. If you do poorly early on, it is impossible to get into the highest score brackets.
- The first year will seem like you are getting a Ph.D. in math. Many of your classmates will have majored in math at the undergraduate level.
- You will take year-long sequences of Micro Theory, Macro Theory, and Econometrics. Depending on the program, you may also take a math course in the fall semester or in August before the other three classes start in September.
- Most first-years form study groups. Getting in the best study group for you is very important. If, for example, you find yourself struggling with the math, be sure to have at least one math person in your group.
- In the summer after your first year, you will take prelims (preliminary examinations). At most places you will take prelims in Micro, Macro, and possibly econometrics. If you do not have an econometrics prelim, then you probably will be required to write an empirical paper using econometrics.
- If you fail prelims (and there no shame in failing; Milton Freedman failed his prelims at the University of Chicago), you will have an opportunity to retake them later in the summer.
- Even if you did not receive financial aid as a first-year, you most certainly will as a second-year. Every year except your first you will be paid a stipend and probably receive a tuition waiver in exchange for being a teaching assistant or a research assistant. This is an excellent opportunity to figure out if you enjoy teaching.
- In your second year, you will start your field work. Most programs require you to take a 2 or 3 course sequence in two fields such as Labor, Development, or Macro.
- The "best" students from the previous year will likely be asked to be teaching assistants for the first-year sequence.
- Life gets a lot more fun and you and your classmates will have more time to socialize, but the work will continue to be challenging.
- You may take a few classes during your third year to satisfy any electives you still need, but at this point you start to focus on your own research.
- Most third-years find a faculty advisor and submit a dissertation proposal.
- The third and fourth years are spent writing your dissertation.
- The fifth year is spent fine-tuning your dissertation and defending it, but most of your energy will be spent trying to find a job.
- Each September and October, all places – Universities, Colleges, Businesses, the Government – advertise job openings for new Ph.D.s. at www.aeaweb.org/joe/.
- Your best (and most complete) chapter of your dissertation will become your "Job Market Paper".
- Applications are usually due by the end of November.
- You will be called for interviews in December.
- In early January, you will attend the American Economic Association annual meeting where 30 to 60 minute interviews are held. (Imagine being interviewed by Paul Krugman or Larry Summers.)
- After the meetings, you hope to receive "fly-outs". During a fly-out, you visit the institution, give a 90 minute talk on your job market paper, get interviewed by anyone and everyone in the department, and usually eat at very nice restaurants. You should treat every discussion you have, however, as an interview, even with office staff.
- After your fly-outs, you select the best job from your numerous job offers.
Top 25 Graduate Schools in Economics