Aren’t You Glad You Majored in Economics?

by | June 1, 2006 | Adam Smith Himself, Articles, Compensation, Finance, Just Plain Interesting

From the Journal of Economic Education (hat tip to
"Truth
on the Market") comes the first study I’m familiar with
examining whether the choice of undergraduate major has any
effect on a lawyer’s career earnings.  And guess what?  If
you major in economics, it helps; majoring in anything else
makes no difference.

Here’s the abstract, in full (emphasis supplied):

"Using nationally representative data, the authors
examine the effects of preprofessional education on the earnings
of lawyers. They specify and estimate a statistical earnings
function on the basis of well-established theory and principles.
Along with standard control variables, categorical variables
are included to represent graduate degrees in addition to the
law degree and an assortment of undergraduate major fields.
Holding a Ph.D. or M.B.A. degree, with the law degree, is associated
with significantly higher earnings in some sectors. Lawyers
with undergraduate training in economics earn more than other
lawyers, ceteris paribus, and economics
is the only undergraduate field associated with earnings that
differ significantly. The
available evidence supports the hypothesis that economics training
increases a lawyer’s human capital compared with other undergraduate
majors."

That still doesn’t mean Adam Smith would become a lawyer were
he alive today; but I know in my heart that he would have an active
and energetic blog.

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