The Economics Major and Educational Opportunities After UNI:  Some Things You Might Not Know

 Why Continue Your Education After UNI?

One reason to go to graduate school is that you have a job in mind that requires additional education.  If you want to be a lawyer, you need to go to law school.  If you want to be a college professor, you need a Ph.D.

A masters degree is also necessary, or at least very useful, for a variety of careers.  If you want to work as an economic analyst or forecaster, you won’t have much luck finding work without at least a master’s degree.  If you want to be a health administrator, an urban or regional planner, a financial engineer, or a consultant, or if you want to analyze and carry out public policy, there are masters’ degrees that will enhance your skills, job potential, and career.

A second reason to go to graduate school is that even though you aren’t sure exactly what you want to do, you want to have greater opportunities for a career where greater analytical skills are required.  For example, those who earn masters degrees are more likely to have careers where they actually do economics.

A third reason is that your interests have changed.  Maybe you’ve decided you really like the courses in your minor.  Or maybe you’ve decided that you’d like to have broader business skills.  In these cases an MBA, maybe with an emphasis in your area of interest, might be appropriate.  With sufficient background and some additional courses you might be able to get into a master’s program in your minor, but be very careful to ensure you have the necessary background and skills.

Going to graduate school just because you want to stay in school, or you don’t know what you want to do, or you want to “find yourself” are not good reasons.  The opportunity costs include the experience and salary you could have earned.  Some graduate programs do no increase your salary enough to compensate for lost time and earnings.  For these programs the motivation to get the degree is not the pay, but the desire to have a certain career.  Also, in some cases graduate school makes it harder or delays getting on with the other parts of your life. 

A cautionary note: quality matters.  Going to a program that isn’t highly rated or well known isn’t likely worth it.  It will be harder to get a job.  Even if you do get a job but you haven’t learned what’s necessary you may not do well.  Again, do not pursue a degree just to get the degree.

You Can Get Paid for Going to School

If you get accepted into a good graduate program and they believe you have a good chance of succeeding, you will likely be offered financial assistance.  Often tuition is reduced to the rate for state residents.  Usually an offer of a teaching or research assistantship with a stipend is offered.  Well qualified applicants may receive scholarships.  If you don’t receive any funding, this may mean the school does not view you as a strong candidate who is likely to complete the degree. 

Admissions Criteria

Graduate programs in economics have competitive admission standards.  The better the program, in any area of study, the harder it is to get admitted.  Consider this: the best of the best undergraduates are the ones who apply.  What will make you stand out? 

Admissions committees take into account scores on standardized graduate level examinations, GPA, relevant course work, letters of recommendation, mission/personal statements, and other materials.  Some of these things may matter more for particular programs than others.  However, they all matter as the probability of being accepted is lower if any one of them is weak.  Students do get accepted without having all of these things perfect, but there is a positive correlation between the quality of these things and the number and quantity of acceptances.  

The More Math, The Better

If you are considering pursuing a master’s degree in economics you will need to have completed at least two semesters of calculus and linear algebra.  For a Ph.D you will need to have completed at least three semesters of calculus, and linear algebra.  These are minimum requirements, for both it would be preferable and to also have intermediate (real) analysis.  Other courses like mathematical statistics, topology, and differential equations are also helpful.  The appropriate emphasis in the economics major is quantitative analysis.

Even if you are considering a master’s or Ph.D in a related field, two semesters of calculus and linear algebra may be required and will certainly be useful. 

GPA Matters!

Of course what really matters is that you have learned something.  However, admissions committees do care about your GPA and sometimes about grades in specific courses.

Letters of Recommendation

Letters of recommendation should come from professors from whom you have taken relevant and possibly multiple courses.   When you ask professors to write you letters, ask if the professor feels she/he can write you a strong letter.  Any professor can write you a letter of recommendation, but you need strong ones to be competitive.  Please be aware that it takes time for a professor to write a strong letter.  If you apply to seven programs, your professors will need to write seven letters.  So, be considerate and make sure you give your letter writers plenty of time to meet the application deadlines.  Make sure they know deadlines, and provide them with forms and typed and stamped envelopes or in the case of online letters the correct URL with any special instructions.

Standardized Admissions Examinations

Law Schools require LSAT Scores.  MBA and some other programs require GMAT scores.  Masters and Ph.D programs require GRE scores.  I recommend you study for these exams.  If nothing else, it will help you relax if you know the format of the exams.  Since the scores can play such a significant role, it’s worthwhile to make an effort to prepare.  Self-study is usually sufficient and preparation courses can be quite expensive.  While it is possible to take retakes, it’s preferable to do better the first time.    

The Application Process

Regardless of how far you are toward completion of your bachelor’s degree, if you are interested in graduate school you should keep the above things in mind.  Take relevant courses, keep up your grade point average, focus on your course work and look for opportunities to write and to engage in relevant extracurricular activities.

Professor Kanago provides assistance to students applying to graduate school.  To start, in the summer before your final year at UNI you need to begin looking for programs to apply to and preparing for the GRE or another standardized examination.  Professor Jepsen provides assistance to students applying to law school.

Ph.D, Masters, Applied Masters, or MBA?

General Considerations

Master’s programs take a year to two to complete.  Ph.D’s take at least four to five years to complete.  Master’s programs are appropriate for students who want to work in business or government.  Sometimes it’s possible to teach at the community college level if you have a master’s degree.   A Ph.D is required to become a tenure-track professor at four year colleges and universities.  Ph.D’s also have some options for employment in business or the government that might not be available for those with masters degrees.  However, the additional years of education come at the cost of real world experience and foregone salary. 

Some master’s programs in economics are somewhat less rigorous and mathematical than Ph.D programs.  However, some are essentially the first year or two of a university’s Ph.D program.  In any case you will be required to take advanced theory courses in micro and macro.  Masters programs usually emphasize quantitative skills and econometrics.  While less math may be required for some master’s programs, it’s still better to have taken three semesters of calculus, linear algebra, and intermediate (real) analysis.   Students who have weaker backgrounds or who want to “test the waters” or be better qualified before applying to a Ph.D program may complete a master’s degree first.

Applied master’s degrees offer more specialized, and in some cases somewhat less theoretical training, in economics.  The usual math courses are important for getting admitted, making it through the program, and having a successful career.   Applied programs often emphasize statistics and econometrics, especially the more practical aspects.  They often include courses from other fields.  Examples include Applied Economics at the University of Minnesota, the Applied Finance and Economics Program at UC Santa Cruz, the University of Cincinnati (which offers specializations in business economics and economic data analysis), and Illinois State University (which offers specializations in Electricity, Natural Gas, and Telecommunications and Community and Economic Development).  For descriptions and links of these and other programs, go to

Master’s and Ph.D programs in economics are designed to provide a much deeper and more mathematical understanding of economic theory and econometrics.  Students take classes with titles similar to what they had as undergraduates but at a very advanced and mathematical level.  In contrast, MBA’s typically provide broader training across the business curriculum at a slightly advanced level and with a focus on applications.  Essentially MBA programs provide training for people who are or want to be managers.  The economics courses in MBA programs are much less mathematical and theoretical then the first year economics courses in a Ph.D program.  In your first year your courses might include courses such as managerial economics, managerial finance, statistics and decision making, operations management, and marketing management.  Other courses will include electives or courses in your area of emphasis.  For example you might have a concentration in entrepreneurship, corporate finance, or international business.  However, most MBA programs do not offer a specialization in economics.

Students in MBA programs often have some business experience.  For example, in the University of Iowa’s full-time MBA program the average age is 27 and the average level of business experience is 3-5 years.  Partly this reflects the willingness of employers to provide assistance to their employees pursing an MBA. 

While an MBA can have value, there are a lot of MBA programs and a lot of people with both an MBA and experience.  Also, MBA programs can be quite expensive and can take as long as two years to complete.  As with other graduate programs consider very carefully the costs and benefits, avoid lower ranked programs, and be very sure of your reasons for going.  Remember that you may want to wait until you have experience and an employer to sponsor you.  Weigh the advantages of additional education against the loss of experience.  Finally, employment prospects for MBA’s appear to rise and fall with the business cycle.

You Can Get a Graduate Degree in A Related Area

Economics majors are well prepared, especially with the proper course work, for law degrees and MBAs.  Economics majors are also generally prepared for other master’s programs that are business oriented, policy oriented, or have economic components.  As usual it’s generally a good idea to have at least a couple of semesters of calculus.  A second major, a minor, or other relevant course work may be helpful.  Examples of these degrees include health administration, public administration or public policy, development studies, international affairs, urban and regional planning, and sports administration.