The next article first appeared within the INOMICS Handbook 2023.
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Each Economics PhD pupil has contemplated a profession exterior academia at the least as soon as. There are a number of different choices accessible to skilled economists, and the INOMICS Wage Report reveals that about 30% finally go for the non-public sector (although the true quantity could also be increased, as INOMICS has a excessive proportion of educational customers). Lately, prime consulting corporations (such because the “Large 4”: KPMG, PwC, Deloitte, and EY) have more and more been hiring Economics PhDs, many by particularly designed superior diploma pipelines – a development that will shock some.
However why are these corporations searching for 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 Large 4 corporations to study extra on the matter, and to assist 1000’s 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 needs and wishes. An Economics PhD program entails superior coursework in microeconomics (the examine of particular person decision-making) and macroeconomics (the examine of the economic system as a complete), in addition to coaching in statistics, econometrics (the appliance of statistical strategies to financial information), and mathematical modeling. PhD college students additionally sometimes conduct impartial analysis, which requires them to develop analytical abilities, conceptual pondering, and the power to determine patterns and traits in giant quantities of knowledge.
Administration consulting corporations are recognized for his or her skill to assist companies remedy advanced issues and obtain their strategic targets. Due to this fact, the interview course of sometimes consists of a number of rounds with at the 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 fascinated with hiring Economics PhDs? Listed below are a couple of key causes:
Robust analytical abilities
Economics PhDs are skilled to investigate information and determine patterns within the economic system and society, discovering and testing traits that will not be instantly obvious. They’re additionally expert in creating 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 invaluable property to consulting groups, who usually work with giant quantities of data and information, and must make sense of it rapidly in an effort to present actionable insights to purchasers.
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Familiarity with financial principle
Due to their rigorous coaching, Economics PhDs deeply perceive financial principle. It supplies them with a framework for understanding how various factors might impression a shopper’s enterprise on each the microeconomic (people and corporations) and macroeconomic (trade and economic system) ranges.
This theoretical background could be particularly invaluable when working with purchasers in industries which are present process vital structural modifications or dealing with new challenges, reminiscent of disruptive expertise or geopolitical tensions. Somebody who studied economics would be capable to determine these modifications and predict future impression on enterprise.
Information science abilities
PhDs with a level in Economics achieve numerous information science abilities in graduate faculty, together with quantitative modeling and information visualization abilities. They’re skilled to resolve issues whereas making certain 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 could be particularly invaluable when working with purchasers who want data-driven insights to make key enterprise choices.
Skill to conduct rigorous analysis
Doctorate packages in economics sometimes 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.
It is a essential talent for a marketing consultant, 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 vital in consulting work, as consultants want to have the ability to clearly clarify advanced ideas and findings to purchasers who might 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 data
Whereas Economics PhDs are sometimes consultants of their explicit subject, additionally they have broad data of different areas of economics, and associated fields like finance and statistics. This breadth of data could be invaluable when working with purchasers who function in numerous industries or who face advanced challenges that require a multidisciplinary strategy.
Final however not least, company purchasers like working with sensible folks, and having a PhD on the crew is usually a massive increase to credibility. A number of qualities set consultants with a PhD diploma in Economics aside: rigorous subject data that Economics PhD college students purchase throughout their coaching and thru their impartial analysis, scientific integrity, international outlook, and a curious thoughts that’s on a continuing seek for an mental problem.
In search of a consulting job as an Economics PhD
Given these advantages, it is not stunning that consulting corporations are more and more searching for out Economics PhDs for his or her groups. In reality, some corporations have even began recruiting instantly 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 fascinated with this kind of place, you’ll want to spotlight these abilities in your resume. The interview course of for consulting positions sometimes consists of a number of rounds with at the least one case interview, the place you may be placed on the spot to resolve 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 think about your employment choices, and think about whether or not a consulting agency hiring economics PhDs could possibly be the precise place for you.
The above article first appeared within the INOMICS Handbook 2023, which you’ll obtain on our web site.
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