The next article first appeared within the INOMICS Handbook 2023.
Each Economics PhD scholar has contemplated a profession exterior academia at the very least as soon as. There are a number of various choices obtainable to skilled economists, and the INOMICS Wage Report exhibits that about 30% finally go for the non-public sector (although the true quantity could also be larger, as INOMICS has a excessive proportion of educational customers). Lately, prime consulting companies (such because the “Massive 4”: KPMG, PwC, Deloitte, and EY) have more and more been hiring Economics PhDs, many by means of particularly designed superior diploma pipelines – a pattern that will shock some.
However why are these companies in search of out economists for his or her consulting groups, and what advantages do economists carry to the desk? I spoke with a human assets supervisor from one of many Massive 4 companies to study extra on the matter, and to assist hundreds of Economics PhDs like myself know our choices higher.
First, it”s essential to reiterate what an Economics PhD entails to determine why these college students are in demand. Economics is the examine of how societies allocate scarce assets to fulfill limitless desires and wishes. An Economics PhD program includes superior coursework in microeconomics (the examine of particular person decision-making) and macroeconomics (the examine of the economic system as an entire), in addition to coaching in statistics, econometrics (the applying of statistical strategies to financial knowledge), and mathematical modeling. PhD college students additionally usually conduct impartial analysis, which requires them to develop analytical abilities, conceptual considering, and the power to determine patterns and developments in giant quantities of knowledge.
Administration consulting companies are identified for his or her capability to assist companies resolve advanced issues and obtain their strategic targets. Due to this fact, the interview course of usually contains a number of rounds with at the very least one case interview; this kind of on-the-spot evaluation isn’t a talent that’s historically taught in economics programs. So why are they eager about hiring Economics PhDs? Listed below are a couple of key causes:
Robust analytical abilities
Economics PhDs are skilled to research knowledge and determine patterns within the economic system and society, discovering and testing developments that is probably not instantly obvious. They’re additionally expert in growing hypotheses and testing them utilizing statistical fashions.
Economics PhDs are skilled to verify no assumption is left untested, and no conclusion is reached unproved. This makes them useful belongings to consulting groups, who usually work with giant quantities of data and knowledge, and must make sense of it shortly with the intention to present actionable insights to shoppers.
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Familiarity with financial idea
Because of their rigorous coaching, Economics PhDs deeply perceive financial idea. It supplies them with a framework for understanding how various factors could affect a consumer’s enterprise on each the microeconomic (people and companies) and macroeconomic (business and economic system) ranges.
This theoretical background may be particularly useful when working with shoppers in industries which are present process vital structural adjustments or going through new challenges, corresponding to disruptive know-how or geopolitical tensions. Somebody who studied economics would have the ability to determine these adjustments and predict future affect on enterprise.
Knowledge science abilities
PhDs with a level in Economics acquire numerous knowledge science abilities in graduate college, together with quantitative modeling and knowledge visualization abilities. They’re skilled to unravel issues whereas guaranteeing that the outcomes generated from statistical fashions are legitimate and dependable.
Articulating methodology (‘Why ought to we make use of this mannequin?’) and conducting a collection of robustness checks (‘Can we belief the outcomes?’) are commonplace instruments utilized by Economics PhD college students when doing financial evaluation. These abilities may be particularly useful when working with shoppers who want data-driven insights to make key enterprise selections.
Means to conduct rigorous analysis
Doctorate packages in economics usually require college students to conduct impartial analysis, which takes a number of years to finish. Economics PhD college students design and handle their very own analysis tasks (or elements of them) in addition to their very own private time and assets to maintain the work going.
This can be a essential talent for a guide, as the character of their job dictates impartial work and the power to multitask between tasks. Economics PhD graduates come already ready for this problem.
Robust communication abilities
Efficient communication is essential in consulting work, as consultants want to have the ability to clearly clarify advanced ideas and findings to shoppers who could not have a background in economics. Economics PhDs are sometimes expert communicators, as they’re used to presenting their analysis to each educational audiences and non-experts throughout graduate research.
Breadth of information
Whereas Economics PhDs are sometimes specialists of their specific discipline, additionally they have broad data of different areas of economics, and associated fields like finance and statistics. This breadth of information may be useful when working with shoppers who function in numerous industries or who face advanced challenges that require a multidisciplinary method.
Final however not least, company shoppers like working with sensible individuals, and having a PhD on the workforce could be a large increase to credibility. A number of qualities set consultants with a PhD diploma in Economics aside: rigorous discipline data that Economics PhD college students purchase throughout their coaching and thru their impartial analysis, scientific integrity, world outlook, and a curious thoughts that’s on a continuing seek for an mental problem.
Looking for a consulting job as an Economics PhD
Given these advantages, it is not stunning that consulting companies are more and more in search of out Economics PhDs for his or her groups. In reality, some companies have even began recruiting immediately from PhD packages, providing college students the chance to transition their economics profession from academia to consulting.
Should you’re coming from an economics PhD program and eager about this kind of place, be sure you spotlight these abilities in your resume. The interview course of for consulting positions usually contains a number of rounds with at the very least one case interview, the place you may be placed on the spot to unravel a number of hypothetical enterprise challenges. There are quite a few books and on-line assets to assist put together for these particularly.
As companies face more and more advanced challenges, the necessity for data-driven insights and rigorous evaluation will solely proceed to develop. In that sense, Economics PhDs carry distinctive abilities and experience to the desk. Make sure you totally take into account your employment choices, and take into account whether or not a consulting agency hiring economics PhDs might be the appropriate place for you.
The above article first appeared within the INOMICS Handbook 2023, which you’ll be able to obtain on our web site.
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