What is an economist? What do economists do? This article explains the six broad categories of economists across academia, policy and the private sector.
I am often asked what exactly it is that economists do. So, in this post, I have outlined some of the different paths that economists take in their careers.
This is not a ranking of the best careers. It is a map. The right path depends on what you enjoy doing every week, what you want to be rewarded for, and the constraints you face (country, language, funding, visa, family, timeline).
The 2×2 career map for economists
This map splits economists along two axes:
Axis 1 (where you work):
- Universities: economics departments and business schools. The strongest research ecosystems are often in the US, but there are excellent clusters in Europe, the UK, Asia, Latin America, Africa, and Oceania. Rankings can be a starting point (not the truth). See: Shanghai Ranking GRAS - Economics QS Subject Ranking -Economics & Econometrics, RePEc/IDEAS Rankings, and the Tilburg Economics Ranking Database.
- Policy institutions: central banks, ministries, statistical agencies, international organisations, development agencies, policy institutes, and think tanks. Examples include the Federal Reserve (Economists), the IMF Economist Program, and the World Bank Young Professionals Program.
Axis 2 (what you mainly do):
- Research economists: your main output is research. Roughly: 70-90% research, 10-30% teaching, service, or policy support (varies a lot).
- Policy economists: your main output is decision support. You still use research tools, but the deliverable is typically a policy note, report, briefing, or operational guidance.
The 2×2 matrix (four baseline career types)
| Universities | Policy Institutions | |
| Research Economists |
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| Policy Economists |
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Two additional tracks in the private sector
Track 5 - Business / Industry Economists
- Economists working in private-sector organisations (tech, platforms, finance, telecom, energy, insurance, AI labs, corporate strategy).
- Often very empirical. Heavy on data, causal inference, experimentation, and forecasting.
Track 6 - Consulting Economists
- Two common variants:
- Economic consulting (antitrust, litigation support, regulatory disputes, damages, competition economics).
- Management consulting with a strong quantitative/analytics component.
- Output is client-facing. Deadlines and communication matter as much as method.
For each of these six job types, I have outlined, in general terms, what the job looks like day-to-day, the route into these types of roles, and what would make you a good or bad fit.
It’s important to keep in mind that there can be different types of economists working at the same organisation. For example, the World Bank mostly has ‘research economists in policy institutions’ but also has a research track that is similar to the tenure track in academia.
Academic research faculty (universities, research economists)
What the job looks like day-to-day
- Reading and writing research.
- Presenting in seminars and conferences.
- Teaching (often 1-3 courses/year depending on institution).
- Advising PhD students.
What is rewarded
- Publications (especially peer-reviewed journal articles).
- Research visibility: citations, invited seminars, grants.
- Departmental service grows over time.
Who hires
- Research universities, business schools, some research-focused institutes.
How people enter
- Typically via a PhD in economics and the economics job market.
What a PhD changes (and when it’s not necessary)
- A PhD is usually required for tenure-track research roles.
- Without a PhD, you may still teach in some settings, but research-track roles are rare.
Good fit / poor fit signals
- Good fit: you enjoy deep work, ambiguity, long horizons, writing.
- Poor fit: you need fast feedback cycles or dislike solitary research.
Research economists in policy institutions (policy institutions, research economists)
What the job looks like day-to-day
- Academic-style research with internal policy touchpoints.
- Briefings for leadership and policy meetings.
- Collaboration with visiting scholars and external researchers.
What is rewarded
- Credible research and internal relevance.
- Ability to communicate clearly to non-academic audiences.
Who hires
- Central banks and research departments (e.g., Federal Reserve Board, regional Feds).
- Research groups such as the New York Fed - Research Economist track.
How people enter
- PhD job market placements, postdocs, sometimes laterals from academia.
What a PhD changes (and when it’s not necessary)
- PhD is typically required for ‘economist’ roles.
- Entry-level ‘RA/Analyst’ roles are a common pre-PhD path (see Part IV).
Good fit / poor fit signals
- Good fit: you want research rigor plus policy proximity.
- Poor fit: you want full autonomy over topic choice and timeline.
Policy/teaching faculty in universities (universities, policy economists)
What the job looks like day-to-day
- Teaching-heavy schedule.
- Curriculum design, student advising, programme leadership.
- Practitioner engagement (guest speakers, applied projects).
What is rewarded
- Teaching excellence and student outcomes.
- Real-world credibility and the ability to translate practice into learning.
Who hires
- Universities, public policy schools, professional master’s programmes.
How people enter
- Often after a career in government, IOs, central banks, or industry.
- Some roles do not require a PhD (varies by institution).
What a PhD changes (and when it’s not necessary)
- A PhD helps for credibility and course scope, but experience can substitute in ‘practice’ roles.
Good fit / poor fit signals
- Good fit: you enjoy teaching and mentoring; you like applied, concrete cases.
- Poor fit: your main goal is publishing in top academic journals.
Policy economists in policy institutions (policy institutions, policy economists)
What the job looks like day-to-day
- Applied analysis under deadlines.
- Writing policy notes, reports, and briefing materials.
- Meetings with stakeholders, sometimes travel and field engagement.
What is rewarded
- Clarity, speed, reliability, and decision relevance.
- Strong internal reputation and repeat responsibility.
Who hires
- IOs and development institutions: IMF Economist Program, World Bank YPP, AfDB YPP.
- Ministries, central bank policy teams, statistical agencies, think tanks.
How people enter
- PhD (common for economist roles) or strong master’s + relevant experience (common in many teams).
What a PhD changes (and when it’s not necessary)
- PhD helps for senior economist tracks and credibility.
- Many policy roles are accessible with a strong master’s, strong empirical skills, and domain expertise.
Good fit / poor fit signals
- Good fit: you like applied work, teamwork, and real-time constraints.
- Poor fit: you want long-horizon research without operational constraints.
Business / industry economists
What the job looks like day-to-day
- Data-driven decision support: pricing, experimentation, forecasting, market design, product analytics.
- Cross-functional work with engineering, product, legal, or strategy.
What is rewarded
- Clear impact on decisions and measurable outcomes.
- Robust methods and clear communication with stakeholders.
Who hires
- Tech, platforms, finance, telecom, energy, insurance, AI labs, corporate strategy groups.
How people enter
- Master’s + strong stats/coding can be enough for many roles.
- PhD is common for “research scientist / economist” titles, especially in research groups.
What a PhD changes (and when it’s not necessary)
- PhD increases access to research-oriented roles and senior technical tracks.
- Not necessary if your target role is analyst/strategy with applied econometrics.
Good fit / poor fit signals
- Good fit: you like fast cycles, large datasets, and business tradeoffs.
- Poor fit: you dislike ‘messy’ data and pragmatic compromise.
Consulting economists
What the job looks like day-to-day
- Project-based work with deadlines.
- Writing reports, building models, preparing exhibits and presentations.
- Often team-based, with client interaction.
What is rewarded
- Clear deliverables, defensible analysis, client trust, communication.
Who hires
- Economic consulting firms and analytics teams (examples of entry points): Compass Lexecon - Careers, NERA - Open Roles, Analysis Group - Careers.
How people enter
- Analyst/RA roles after bachelors or masters.
- PhD hires into economist tracks are common in economic consulting.
What a PhD changes (and when it’s not necessary)
- PhD expands scope and seniority in technical roles.
- Not required for many analyst roles if your quantitative skills are strong.
Good fit / poor fit signals
- Good fit: you like teamwork, deadlines, and writing for decision makers.
- Poor fit: you want full control over research questions and timelines.
As these different categories show, an 'economist' is not a single job, but rather it is a family of jobs. The best choice starts from the weekly workflow you want, whether that’s publishing papers, teaching, advising policy, shipping business decisions, or delivering client work. A PhD is most valuable when the target job explicitly rewards frontier research.