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.

Print Version| Share on LinkedIn

Related Articles

Email Delivery

Get Our Latest Articles Delivered to your inbox +
X

Sign-up for the Insider’s Email

Be the first to learn of Adam Smith, Esq. invitation-only events, surveys, and reports.





X

Get Our Latest Articles Delivered to Your Inbox

Like having coffee with Adam Smith, Esq. in the morning (coffee not included).

Oops, we need this information
Oops, we need this information
Oops, we need this information

Thanks and a hearty virtual handshake from the team at Adam Smith, Esq.; we’re glad you opted to hear from us.

What you can expect from us:

  • an email whenever we publish a new article;
  • respect and affection for our loyal readers. This means we’ll exercise the strictest discretion with your contact info; we will never release it outside our firm under any circumstances, not for love and not for money. And we ourselves will email you about a new article and only about a new article.

Welcome onboard! If you like what you read, tell your friends, and if you don’t, tell us.

PS: You know where to find us so we invite you to make this a two-way conversation; if you have an idea or suggestion for something you’d like us to discuss, drop it in our inbox. No promises that we’ll write about it, but we will faithfully promise to read your thoughts carefully.

close window