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WHY STUDY ECONOMICS? THE PRIVATE RATE OF RETURN TO AN ECONOMICS DEGREE
Author(s) -
Lewis Philip,
Daly Anne,
Fleming Don
Publication year - 2004
Publication title -
economic papers: a journal of applied economics and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.245
H-Index - 19
eISSN - 1759-3441
pISSN - 0812-0439
DOI - 10.1111/j.1759-3441.2004.tb00368.x
Subject(s) - rate of return , economics , degree (music) , census , investment (military) , internal rate of return , microeconomics , finance , political science , sociology , population , law , physics , demography , production (economics) , politics , acoustics
This paper considers the implications of the major changes in the labour market for economists over the past twenty years with respect to the private rate of return to investment in an Economics degree. The paper presents estimates based on Census data for 1986, 1991, 1996, and 2001, which show that the private rate of return to the degree has risen over time. Comparisons are made with two of the most likely alternative degrees, namely Business and Law. The results suggest that although students are less attracted to Economics degrees, these degrees have become financially more attractive, particularly relative to Business.