John Maynard Keynes.
For mathematicians, econometrics is a challenging and rapidly evolving discipline with expanding applications and job market opportunities. An econometrician uses quantitative analysis and economic theory to analyze economic relationships and apply them to real-world applications. Econometric skills are used in all sectors of the economy. In industry, companies are increasingly using econometrics in operational and strategic marketing roles to analyze and predict market and consumer behavior. However, if you want to become an econometrician or economist, you’ll probably need a college degree, research experience, an internship, and you should seriously consider pursuing a graduate degree.
Becoming an econometrician can mean starting out as a budding statistician who works with calculations.
A graduate degree in econometrics or economics with a focus in econometrics are paths for you to become an econometrician. Econometrics graduate programs typically seek good college degrees in mathematics, statistics, or economics. Engineers and physicists looking to apply their mathematical and analytical skills to economics have also migrated to the field of econometrics. If you don’t meet all of the degree requirements, many economics programs offer graduate options or two-year master’s programs.
In industry, companies are increasingly using econometrics in operational and strategic marketing roles to analyze and predict market and consumer behavior.
Many econometricians follow in the footsteps of one of the world’s most famous economists, John Maynard Keynes, and work in government. Economic relationships in the departments of finance, labor, energy, and health, among others, are studied to help improve policymaking. Opportunities exist to gain experience working on part-time and summer projects for the government or the large group of economic and political research firms that work for government agencies. Many governments have recruitment programs aimed at economics students and graduates who want to become econometricians. It may be worth starting your research early and, if necessary, preparing to test for your desired government position.
The growing popularity of behavioral economics, the application of psychological factors to economic analysis, is increasing the demand for quantitative analyzes of more dynamic economic relationships in business and government. An example is research on the use of positive incentives to encourage energy conservation or healthier lifestyles. Conventional statistician jobs also require more econometric tools. The insurance industry, normally a major employer of statisticians, is placing more emphasis on the relationship between individual and market behavior and insurance economics; therefore, they are hiring more econometricians.
In general, financial markets may continue to be a growth market for econometricians. Many financial firms are hiring quantitative analysts to focus on developing stronger credit and risk management programs, in addition to the more traditional financial asset price forecasting functions. To gain basic experience on the path to becoming an econometrician, financial companies always hire statisticians and financial analysts to analyze the numbers. Econometricians often start out as junior analysts and statisticians, initially applying many of the same forecasting, regression analysis, and stochastic tools.
For PhDs, academia and consulting are career options. There are many opportunities to gain experience as a specialist econometrician. Consider an internship at one of the many econometrics or economics journals to round out your experience.