What Is an Economist? Role, Types, and Career Path

Key Takeaways

• Economists are professionals in the social science discipline of economics who study how societies allocate resources among competing uses.
• Economics includes specialized fields such as macroeconomics, microeconomics, public economics, international economics, and financial economics.
• Economists work across government agencies, financial institutions, corporations, academic institutions, and international organizations.
• A career in economics typically requires at least a bachelor's degree, with many roles requiring a master's or doctoral degree for advanced research and policy positions.

When grocery prices climb or unemployment figures change, the effects show up in everyday choices people have to make. Households adjust spending, employers rethink hiring, and public institutions respond. These movements do not happen by chance. Market trends and financial forecasts are built on careful analysis of how money, labor, and incentives move through society. Economists are the professionals who study these patterns and explain why they occur. So, what is an economist, and is it a career worth considering? The appeal becomes clearer once you look at how widely this work applies and how many directions it can lead.

What Is an Economist?

An economist is a professional in the social science discipline of economics who studies how societies allocate resources among competing uses. This work centers on understanding the production, distribution, and consumption of goods and services within an economy. Contrary to popular belief, economists do not focus solely on money or markets, but they examine the broader patterns of human decision-making when people face choices about what to produce, how to produce it, and who receives the results.

Economics centers on analyzing behavior under conditions of scarcity. Economists explore questions such as how individuals and organizations respond to incentives, how prices form in markets, how policies affect outcomes across different groups, and how economic conditions influence behavior over time, among many other things. This analysis applies to everything from individual purchasing decisions to national fiscal policy.

What Does an Economist Do?

The work of an economist centers on understanding economic systems through research and analysis. Their core responsibilities include:

• Collecting and analyzing data to identify patterns in markets, employment, pricing, and economic behavior
• Building and testing economic models that explain relationships between variables such as supply, demand, and incentives
• Evaluating policy impacts by assessing how laws, regulations, or government programs affect different groups
• Forecasting economic trends such as growth, inflation, or labor market changes using historical and current data
• Communicating findings through reports, presentations, and visualizations that support decision-making by businesses and policymakers

Types of Economists

Economists often specialize in particular areas, applying the same analytical tools to different economic questions and settings. Based on this, the main types of economists are:

• Macroeconomists, who examine economy-wide trends such as growth, inflation, employment, and interest rates, often informing monetary and fiscal policy decisions.
• Microeconomists, who study how individuals and firms make choices, focusing on consumer behavior, pricing, market structure, and industry-level outcomes.
• Public economists, who analyze government taxation and spending, assessing how policies influence behavior, efficiency, and the distribution of resources.
• International economists, who focus on global trade, exchange rates, and cross-border capital flows, examining how national economies interact.
• Financial economists, who apply economic analysis to financial markets, studying investment behavior, risk, and asset valuation.
• Labor economists, who concentrate on employment dynamics, wages, and workforce policy, including the effects of regulation and education.
• Development economists, who study economic growth in lower-income regions, with attention to poverty reduction, institutions, and long-term development paths.

Where Do Economists Work?

Economists are employed in a wide range of settings, including:

• Government agencies and public institutions, where economists analyze policy impacts, labor markets, housing, taxation, and regulation
• Central banks and financial regulators, supporting decisions related to inflation, interest rates, and financial stability
• Private companies, including technology firms, consulting agencies, and real estate organizations, where economists study markets, pricing, and demand
• Financial institutions, such as banks and investment firms, where they analyze risk, market behavior, and asset performance
• Universities and research organizations, conducting economic research, teaching, and contributing to policy discussions
• International organizations and nonprofits, focusing on development, trade, and global economic issues

How to Become an Economist

Becoming an economist usually starts with formal training in economics and quantitative analysis. Most economists begin with a bachelor's degree in economics, where they learn to examine economic behavior through data-driven reasoning and structured models.

At the undergraduate level, coursework introduces students to how markets operate, how policy shapes outcomes, and how economic claims are tested using evidence rather than assumptions. This foundation prepares graduates for entry-level roles that support research, policy work, or analytical functions in public and private organizations.

For many economists, graduate study is the next stage of training. A master's degree in economics or a related discipline allows students to build deeper analytical expertise and engage with more complex economic questions, often in applied or policy-focused settings. Careers centered on academic research or advanced policy work typically require doctoral study, where economists spend several years developing theory-driven research and producing original scholarship.

Formal education is only part of the preparation. Economists must also develop strong technical capability and clear communication skills. The ability to work confidently with data and explain findings in a way that informs decision-making is what allows economic analysis to have practical value beyond academic settings.

At Santa Clara University's Leavey School of Business, economics is taught with close attention to how people actually make choices in everyday financial and economic settings. This approach is rooted in the university's long-standing role in the development of behavioral economics, a field that emerged from questioning traditional assumptions about rational decision-making.

Decades before behavioral economics became widely accepted, Richard Thaler's early research was shaped through sustained collaboration with Hersh Shefrin, now a professor of finance at Santa Clara University. They collaborated for years on research that brought psychological insight into economic and financial behavior. One example described in Leavey's newsroom story is a 1986 study involving Santa Clara University MBA students that examined whether people spend or save differently depending on how they receive money.

Shefrin highlights the significance of that evidence directly: "Our Santa Clara students were the first to provide evidence in a systematic way that said it really matters in what form you get your wealth." In the same piece, this idea is described as a special case of "mental accounting," and it is noted as part of what appeared in the Nobel Prize committee's praise for Thaler.

For a prospective economist, this matters because it points to a culture of study that values measurement, careful interpretation, and real evidence about how decisions happen in practice. It also shows how students can be part of work that asks serious questions about economic behavior, rather than treating economics as only abstract models.

Within the Leavey School of Business, the MS in Finance and Analytics combines finance fundamentals with analytical capabilities. This program helps students develop the quantitative and analytical skills that complement economic analysis. The program is offered in both on-campus and online formats, providing flexibility for working professionals.

While the MSFA program differs from a traditional economics degree, it shares key analytical foundations and prepares students for roles that require understanding economic principles alongside financial expertise.

Is Being an Economist a Good Career?

A career in economics offers intellectual challenge, versatility across industries, and the opportunity to influence important decisions. The profession values analytical rigor and rewards those who can translate complex information into clear insights that inform policy and strategy.

The versatility of economic training stands out as a major advantage. Economic analysis applies across sectors from government to finance to technology. This breadth means economists can pivot between industries or combine expertise in multiple areas throughout their careers. An economist might begin in government policy analysis, move to private sector consulting, and later transition to academic research or corporate strategy.

The intellectual challenge of economics attracts many to the field. Economic problems rarely have simple solutions. Economists must consider competing factors, weigh trade-offs, and develop recommendations despite uncertainty. This work requires creativity in problem-solving alongside technical skill in quantitative analysis.

Compensation reflects the specialized nature of the work. The median annual wage for economists is estimated to be around $115,440, according to the Bureau of Labor Statistics. However, actual earnings vary significantly by industry, location, and experience level. Economists in federal government positions earn an average of $141,590, while those in scientific research and development services average $129,430.

The long-term relevance of economic skills adds to career stability. As businesses become more data-driven and as policy decisions increasingly rely on quantitative analysis, the ability to think like an economist becomes more valuable. Skills in statistical analysis, causal reasoning, and strategic thinking transfer across roles and adapt as technology and methods progress.

Yet the career also presents challenges. Competition for top positions, particularly in academia and prestigious government roles, remains intense. The work can be intellectually demanding, requiring continuous learning to keep pace with new methods and changing economic conditions. Some roles involve high-pressure environments where forecasts and recommendations carry significant consequences.

Those considering economics as a career should assess their interest in quantitative analysis, their tolerance for ambiguity, and their desire to work on problems where human behavior intersects with data. The field rewards curiosity, analytical precision, and the ability to communicate complex ideas clearly.

Conclusion

Economics is a field worth serious consideration for students who want to understand how markets and institutions function in practice. It supports a wide range of professional paths and allows graduates to adapt as industries and roles change over time.

At the Leavey School of Business, students can pursue this interest through programs that combine economic reasoning with financial analysis and applied coursework. The Department of Economics, in particular, offers strong preparation for roles that require analytical discipline. For students deciding where to begin or how to deepen their studies, Leavey offers an environment that supports adaptability without sacrificing academic depth.

Frequently Asked Questions

How long does it take to become an economist?

Most economists complete a bachelor's degree in economics, which takes about four years, while research, academic, or senior policy roles often require additional graduate study that extends the timeline.

What is the highest paying job as an economist?

Compensation varies by sector and role, but some of the highest average salaries are found in federal government positions, financial institutions, and senior economic advisory roles.

Is being an economist a hard job?

The work can be demanding because it requires strong analytical skills, comfort with data, and careful reasoning, but it is well-suited to people who enjoy working through complex questions and evidence.