How Much Do Academic Economists Really Make?

[YoungEconomist]

Originally Posted by KingOfConvenience

I'm not sure that includes bonuses and other perks.

That's true, but I don't know exactly what those bonuses and perks would be either.

[SquareSquare]

Bonuses and perks for academics can include: a nice office, computer budget (i.e. you can spend on hardware/software), book budget, RA budget.

Again, academic economists get paid for 9 months so you should multiply their salary by 12/9, then add "academic perks" and it works out to about the same (using the numbers OP gave).

I'm gonna have to disagree. I imagine that academics get stressed as well. There is a good deal of pressure to publish and I imagine it can be very stressful at times.

As I was saying, "if they want to be" stressed then academic economists will be stressed. But this is pretty much a choice. If one wants to take it easy, he will avoid any of Top-50 schools, get a decent salary with relatively flexible teaching... If one wants to take it hard, well it's his or her choice.

Again, I hate giving untrackable information, but a recent top-5 (well... Chicago, haha) graduate said he accepted a job offer from top100 versus top20 AND it paid more! He said that there is of course prestige in working at a famous uni, but [his or her] friends at those unis were working weekends and late evenings just to get stuff published in time.

[SquareSquare]

OP: if you still want to satisfy your curiousity with some numbers check p.45 of this paper. Actually, it should answer most of the questions here.

[VA_LAC]

From Economist - Wikipedia, the free encyclopedia

"According to the United States Department of Labor there were 13,000 economists in the US with a median salary of roughly $72,780 with the top ten percent earning more than US$ 129,170 annually.[4] About 400 colleges and universities grant about 900 new Ph.D.s in economics each year. The type of academic degree, Bachelors, Masters or Doctorate degree had significant influence on an individuals job outlook and salary. While the overall expected job growth for economists remains below nation average, the demand for those with a Doctorate, especially those employed in the corporate sector, is expected to increase at a considerably faster pace.[5] Incomes were highest for those in the private sector, followed by the federal government with academia and high schools paying the lowest incomes. Median salaries ranged from $45,000 for those with a Bachelor to $85,000 for those with a Ph.D. in economics. A recent and continuous study by PayScale.com showed Economic consultants with a Ph.D. had the overall highest median income for any group making $116,250, the median salaries for an assistant professor was $63,500, for an associate professor it lay at $67,000 and $85,000 for a full professor. The overall median income for doctorates in academia was $75,000 compared to $125,000 in consulting and $87,000 in banking."

The median would be for an experienced economist.

[YoungEconomist]

Originally Posted by SquareSquare

Again, I hate giving untrackable information, but a recent top-5 (well... Chicago, haha) graduate said he accepted a job offer from top100 versus top20 AND it paid more! He said that there is of course prestige in working at a famous uni, but [his or her] friends at those unis were working weekends and late evenings just to get stuff published in time.

I know it's only anecdotal, but any idea how much he makes there? Also, where is it located (I'm just trying to get a sense of the standard of living where he lives)? Furthermore, isn't there still a good deal of pressure to publish and work hard?

[jbs02002]

Originally Posted by YoungEconomist

Like I said, the stats I've seen say the average economic consultant with a PhD earns about $127,000 a year.

I think that's a little low. I work at CRAI, and the starting salary for a fresh PhD is about $120K plus bonus.

[YoungEconomist]

Originally Posted by jbs02002

I think that's a little low. I work at CRAI, and the starting salary for a fresh PhD is about $120K plus bonus.

Yeah, but isn't CRAI one of the top firms? By the way, what do you think ones chances of landing a job there after obtaining a PhD from a program ranked somewhere in the 30s or 40s?

[jbs02002]

Originally Posted by YoungEconomist

Yeah, but isn't CRAI one of the top firms? By the way, what do you think ones chances of landing a job there after obtaining a PhD from a program ranked somewhere in the 30s or 40s?

In all honesty, they're pretty slim. The sad thing about it is that even if you were the best candidate on merit alone, they'd probably go with someone else from the top ten. Clients would be hesitant to trust someone outside the top 20 or so. It's not really fair, but that's how it is.

[SquareSquare]

I know it's only anecdotal, but any idea how much he makes there? Also, where is it located (I'm just trying to get a sense of the standard of living where he lives)? Furthermore, isn't there still a good deal of pressure to publish and work hard?

Haha, I didn't ask him for the salary since it's a bit impolite. But based on what he was saying he was offered 80K at top 20 (hence he's got a bit more at top 100). The conversation took place in Spring 2005. There is a pressure and if he doesn't meet some requirements he'll be kicked out... but the pressure is not even nearly as high as at top 20, as he said back then.

[YoungEconomist]

Originally Posted by jbs02002

In all honesty, they're pretty slim. The sad thing about it is that even if you were the best candidate on merit alone, they'd probably go with someone else from the top ten. Clients would be hesitant to trust someone outside the top 20 or so. It's not really fair, but that's how it is.

Yeah, but how slim?

I have looked at many firms websites and the majority of there consultants come from top 20 programs. Buy I also see a good deal of people who get there PhD from lower ranked schools, such as, Texas A&M, George Washington University, University of Milwaukee-Wisconsin, etc.