An economist is a professional and practitioner in the social science discipline of economics.
The individual may also study, develop, and apply theories and concepts from economics and write about economic policy. Within this field there are many sub-fields, ranging from the broad philosophical theories to the focused study of minutiae within specific markets, macroeconomic analysis, microeconomic analysis or financial statement analysis, involving analytical methods and tools such as econometrics, statistics, economics computational models, financial economics, regulatory impact analysis and mathematical economics.
History of the profession
Although economists are now recognized as specialists in a distinct profession, the earliest contributors to economic thought were polymath philosophers. Some of the earliest economic writings date to antiquity, notably Aristotle’s Oeconomica and Xenophon’s Oeconomicus. These works addressed, in rudimentary form, themes such as the division of labour.
In the seventeenth century, as early modern economic thought began to take shape, its leading writers were typically broad-ranging scholars who wrote on economics alongside philosophy and law. This was true of Richard Cantillon, who described what later came to be known as the Cantillon effect, and of David Hume, who anticipated the quantity theory of money.
Adam Smith, in An Inquiry into the Nature and Causes of the Wealth of Nations, wrote one of the first major works devoted entirely to economics, helping to establish economics as a distinct field within the social sciences. His seminal work gave rise to several intellectual traditions, including the classical school (notably David Ricardo and Jean-Baptiste Say) and, in reaction, Marxism, following the writings of Karl Marx.
Economics became increasingly professionalized over the course of the nineteenth century. Jean-Baptiste Say held France’s first chair in economics at the Conservatoire national des arts et métiers in the early part of the century. By the end of the century, most economists associated with the neoclassical school were academics, often trained in mathematics. The figure of the economist thus shifted from that of the polymath scholar to that of a specialized intellectual.
Over the course of the twentieth century, advances in economic theory associated with John Maynard Keynes, Paul Samuelson, and Milton Friedman contributed to the emergence of several major schools of thought: Keynesian economics, soon integrated through Samuelson’s neoclassical synthesis, and then Friedman’s monetarism, which in turn influenced the development of new classical economics.
The 2008 financial crisis led to the Great Recession. This prompted some macroeconomists and Financial Economists to question the current orthodoxy. One response was the Keynesian resurgence. This emerged as a consensus among some policy makers and economists for Keynesian solutions.
Professions
Education and training
A professional working inside of one of many fields of economics or having an academic degree in this subject is often considered to be an economist; In the U.S. Government, on the other hand, a person can be hired as an economist provided that they have a degree that included or was supplemented by 21 semester hours in economics and three hours in statistics, accounting, or calculus. see Bachelor of Economics and Master of Economics.
Employment and roles
Economists work in many fields including academia, government and in the private sector, where they may also "study data and statistics in order to spot trends in economic activity, economic confidence levels, and consumer attitudes. They assess this information using advanced methods in statistical analysis, mathematics, computer programming [and] they make recommendations about ways to improve the efficiency of a system or take advantage of trends as they begin." In addition to government and academia, economists are also employed in banking, finance, accountancy, commerce, marketing, business administration, lobbying and non- or not-for profit organizations.
In many organizations, an "Economic Analyst" is a formalized role. Professionals here are employed (or engaged as consultants) to conduct research, prepare reports, or formulate plans and strategies to address economic problems. Here, as outlined, the analyst provides forecasts, analysis and advice, based upon observed trends and economic principles; this entails also collecting and processing economic and statistical data using econometric methods and statistical techniques.
Academia and research
thumb|Former [[chair of the Federal Reserve Alan Greenspan, who obtained his Ph.D. in economics from New York University, testifies before the U.S. House Committee on Financial Services.]]In academia, most economists have a Ph.D. degree in Economics. and in other large corporates, provide the (long term) economic forecasts used within their organizations. Relatedly, they consult to fund managers, risk managers, and corporate analysts regarding their investment strategy / capital budgeting decisions. Particularly in the tech sector, the focus may be microeconomic, addressing pricing, competition, and customer behavior. In either case, (chief) economists are also often included in strategy formulation.
Government and public policy
thumb|Former chair of the Federal Reserve [[Janet Yellen speaks with IMF Managing Director Christine Lagarde, 2014.]]In the public sector, analysts advise legislators and executives on economic policy, public works, and related; politicians often consult economists before enacting economic policy; and many statesmen have academic degrees in economics. A Federal Government Economic Analyst conducts economic analysis of issues directly related to the function of their federal government agency.
Regulation and qualifications
In contrast to regulated professions such as engineering, law or medicine, there is not a legally required educational requirement or license for economists.
By country
Economics graduates are employable in varying degrees depending on the regional economic scenario and labour market conditions at the time for a given country. Apart from the specific understanding of the subject, employers value the skills of numeracy and analysis, the ability to communicate and the capacity to grasp broad issues which the graduates acquire at the university or college. Whilst only a few economics graduates may be expected to become professional economists, many find it a base for entry into a career in finance – including accounting, insurance, tax and banking, or management.
A number of economics graduates from around the world have been successful in obtaining employment in a variety of major national and international firms in the financial and commercial sectors, and in manufacturing, retailing and IT, as well as in the public sector – for example, in the health and education sectors, or in government and politics. Some graduates go on to undertake postgraduate studies, either in economics, research, teacher training or further qualifications in specialist areas.
Brazil
Unlike most nations, the economist profession in Brazil is regulated by law; specifically, Law No. 1,411, of August 13, 1951. The professional designation of an economist, according to said law, is exclusive to those who graduated with a Bachelor of Economics degree in Brazil.
United States
According to the United States Department of Labor, there were about 15,000 non-academic economists in the United States in 2008, with a median salary of roughly $83,000, and the top ten percent earning more than $147,040 annually. Nearly 135 colleges and universities grant around 900 new Ph.D.s every year. Incomes are highest for those in the private sector, followed by the federal government, with academia paying the lowest incomes. As of January 2013, PayScale.com showed Ph.D. economists' salary ranges as follows: all Ph.D. economists, $61,000 to $160,000; Ph.D. corporate economists, $71,000 to $207,000; economics full professors, $89,000 to $137,000; economics associate professors, $59,000 to $156,000, and economics assistant professors, $72,000 to $100,000.
United Kingdom
The largest single professional grouping of economists in the UK are the more than 3500 members of the Government Economic Service.
Analysis of destination surveys for economics graduates from a number of selected top schools of economics in the United Kingdom (ranging from Newcastle University to the London School of Economics), shows nearly 80 percent in employment six months after graduation – with a wide range of roles and employers, including regional, national and international organisations, across many sectors.
Sociology and public perception
Status among the social sciences
Boundaries and insularity
Some authors argue that economics occupies a distinctive and often dominant position among the social sciences, often perceived (both inside and outside the discipline) as more scientific and formalized than its sister disciplines. This perceived superiority is visible inside the profession itself, but is also reinforced from the outside: economists earn significantly higher salaries than other social scientists, both in academia and on the wider labour market. They also have their own major prize: the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel (often referred to as the “Nobel Prize in Economics”), and they occupy a role in the making of public policy that no other social science enjoys. These features are contributing to disciplinary “insularity” and to a self-reinforcing dynamic of confidence and perceived legitimacy. Moreover, disciplinary boundaries also reflect status relations: since economists tend to view their own discipline as more scientific than other social sciences, they may be less inclined to rely on those fields. In a Bourdieusian perspective, they describe economists as a dominant group and argue that interdisciplinary work is often not regarded as particularly valuable within the discipline. and then diffused to the rest of the field. This hierarchy can hide or marginalize internal controversies and contribute to economists speaking with one voice, reinforcing their insularity, credibility and legitimacy in the public arena. This structure can be described as overseen by a disciplinary elite made up of prestigious departments, leading journals, and the scholars who move from the former to publish in the latter. The resulting hierarchy sets norms and standards that extend to hiring and the job market, one of the most organized and standardized in the social sciences. In this context, scholars also describe a “fix-it” culture among economists: a strong confidence in their ability to propose solutions and correct malfunctions, relying on tools they regard as effective and scientific. This suggests that this influence can reinforce the higher status often accorded to economists, while also leaving them particularly exposed in the public arena: in times of crisis, they are among the first to be questioned and blamed. From the outside, as mentioned, economists appear as the most powerful social science within the state: decision-makers have grown accustomed to turning to their expertise, and economists occupy key positions in central banks, ministries of finance, international organisations and advisory councils. First, its abstract, mathematical formalism, which brings it closer to a hard science, gives it a rational, scientific and objective appeal. Second, in the post-war period, economics presents itself as a general technique of government, not only competent in the realm of “pure” economics, but also as a producer of tools that can be transposed to a wide range of public policy domains, from labour markets to pensions, and from climate regulation to healthcare. Finally, the strong internal hierarchy of the profession provides its own clearly identified instances of validation (top departments and journals),
Social composition, values and public image
Economics as a discipline is heavily male-dominated, compared with many other social sciences, and its practitioners also tend to come from relatively higher social strata. It is difficult, however, to determine whether this relationship is produced by economic training itself, or whether individuals already more oriented towards self-interest are simply more likely to choose economics in the first place.
Their views are often out of step with those of the general public, for example in their support for market-based mechanisms to address social issues (such as paying organ donors, or using carbon taxes). Their relative material comfort tends to widen the social distance that separates them from other groups, which raises questions given that economists occupy important positions at the heart of decision-making structures, and that their discipline is closely linked to public administrations and large organizations.