In this article, we will look at the 15 Highest Paying Countries for Economists. We have also covered key trends and companies for economists with an in depth analysis. If you want to skip our detailed analysis, head straight to the 5 Highest Paying Countries for Economists.
Why are Economists Important?
In the intricate dance of world economies, economists serve as the choreographers, the maestros who orchestrate the symphony of fiscal policies, trade dynamics, and financial systems. Their profound impact on shaping the economic destinies of countries and guiding economic growth renders them indispensable figures on the global stage. While their roles in shaping economic policies is pertinent, universities and research groups are the largest employers of economists followed by the government. To read more about the impact economists have, do check out our article about the most influential economists in the world.
Economists are also the architects of economic blueprints that steer corporations toward prosperity. They analyze data, predict trends, and devise strategies to mitigate crises and hence, foster stability and growth. For instance, when Apple Inc (NASDAQ:AAPL) launched the iPhone X in 2017 with a price tag of $999, economists likely conducted extensive market research to assess consumer demand at that price point. By analyzing factors like income distribution, consumer preferences, and price elasticity of demand, Apple Inc (NASDAQ:AAPL) could gauge how the market would respond to the premium pricing. This helped Apple Inc (NASDAQ:AAPL) maximize profits without alienating its customer base.
The complexity of the jobs of economists is matched only by the impact of their decisions. It’s no wonder that their high salaries reflect their mastery of numbers. Speaking of high salaries, financial economics is one of the highest paying fields in economics but as far as highest paying jobs in economics are concerned, chief economists are economists with the highest salaries in the world. While economists usually love their jobs, some may consider it to be one of the most boring jobs that pay $100,000 or more.
Occupational Outlook
Speaking of numbers, the figures from the Bureau of Labor Statistics provide a solid grounding for understanding the occupational outlook of economists. As of 2021, the median annual salary for economists was $105,630. Moreover, to pursue a job as an economist, a master’s degree is usually mandatory. What’s remarkable is that, unlike some professions, economists don’t necessarily require prior work experience in a related occupation which make it accessible to fresh minds brimming with economic acumen. With a projected job growth of 6% between 2021 and 2031, the US predicts addition of 1,000 new jobs during this period.
Emerging Trends Economists Must Note
The world of economics is in a state of constant evolution, deeply influenced by technological advancements, globalization, and shifting socio-political dynamics. The rise of behavioral economics that studies the psychological factors driving economic decisions, has injected a human-centric dimension into the field for businesses.
A small example of behavioral economics is the idea of “girl math”, as highlighted by the viral Tiktok trend. This concept underscores how people find clever ways to make expensive buys seem reasonable. In their heads, consumers use discounts or other tricks to make spending on luxury items make more sense. This trend clearly highlights how behavioral economics is getting more influential. While our life is constantly changing because of technology, globalization, and other factors, “girl math” shows how consumer psychology plays a far bigger role in how they spend money than they anticipate.
The OECD Economic Outlook, June 2023 has highlighted key insights for economists. Global GDP growth is projected to be 2.7% in 2023, rising modestly to 2.9% in 2024 which reflects a fragile improvement and below-trend performance. Despite a decline in headline inflation due to the energy price downturn, core inflation remains high, with OECD projecting a shift from 6.6% in 2023 to 4.3% in 2024.
The report underscores the impact of high inflation and modest wage increases on falling real wages in 2022 and prompts governments to provide extensive support to mitigate cost-of-living pressures. Additionally, governments are advised to maintain restrictive monetary policies to combat inflation and phase out fiscal support while targeting vulnerable households. Emphasis is placed on pro-growth spending and structural reforms to address high public debt levels, budget deficits, and pressing future challenges.
The Impact Economists Create for Corporations
Amazon.com, Inc (NASDAQ:AMZN)’s incorporation of over 150 PhD economists into its workforce revolutionized its decision-making processes. These economists play a pivotal role in the Amazon.com Inc (NASDAQ:AMZN)’s operations, influencing choices with data-driven insights. For instance, economists shape pricing strategies and leverage advanced algorithms to determine optimal price points. Additionally, their contribution to inventory management has led to impressive improvements which has reduced fulfillment costs by 5% in a year for Amazon.com, Inc (NASDAQ:AMZN). Economists also played a key role in Amazon’s Prime offering, determining which benefits most attract customers. Such data-backed decisions have significantly contributed to Amazon.com, Inc (NASDAQ:AMZN)’s unparalleled growth, with revenue reaching $386 billion in 2020—a stark increase from $61 billion in 2012, largely attributed to their economist-guided strategies.
Similarly, economists have also proven to be indispensable assets to Uber Technologies Inc (NYSE:UBER)’s strategic evolution. The company has recognized the value of economic research in shaping its policies and decisions. With the addition of five full-time staff economists, these economists have played a pivotal role in quantifying and analyzing aspects like business optimization, marketplace dynamics, and policy impact. Uber Technologies Inc (NYSE:UBER)’s move towards economic rigor is evident in its exponential growth, with a valuation soaring to $120 billion in 2020 from $70 billion in 2017. By employing economists to inform business directions and policymaking, Uber Technologies Inc (NYSE:UBER) also demonstrated a shift towards a more transparent and informed approach.
Economists have also wielded significant influence in shaping the trajectories of technology giants like Alphabet Inc (NASDAQ:GOOG) and International Business Machine Corp (NYSE:IBM).
For instance, at Alphabet Inc (NASDAQ:GOOG), Chief Economist Hal Varian played a pivotal role in designing the auction model for the company’s initial public offering (IPO) and navigating antitrust challenges. Alphabet Inc (NASDAQ:GOOG)’s inclination to utilizing economics in its decision-making is evident in its employment of approximately 300 economists and statisticians who empower data-driven decisions. Furthermore, their economic insights have enabled Alphabet Inc (NASDAQ:GOOG)’s continued dominance in the digital advertising sector, contributing to the company’s impressive annual revenue of over $279 billion.
Similarly, at International Business Machines Corp (NYSE:IBM), economists have been instrumental in revolutionizing business strategies. Martin Fleming, Chief Economist at International Business Machines Corp (NYSE:IBM), highlighted the transformative power of data analysis and artificial intelligence in achieving a forecast accuracy of up to 90% in predicting retail performance. This economic rigor has enabled International Business Machines Corp (NYSE:IBM) to optimize resource allocation, refine pricing strategies, and improve customer satisfaction.
Our Methodology
To list the highest paying countries for economists, we identified the countries with the highest demand for economists and then made a list for 27 countries with the average salaries for economists. Of those 27, the 17 with the highest average salaries were selected and have been ranked. We acquired the data for average salaries of economists for each country from ERI Economic Research Institute. The list is presented in ascending order.
Here is a list of highest-paying countries for economists.
15. New Zealand
Average Salary: $86,722
Becoming an economist in New Zealand offers opportunities to contribute to policy decisions, and address the socio-economic challenges with competitive salaries. Notable economists like Brian Easton and Ganesh Nana have shaped the country’s economic discourse.
14. Austria
Average Salary: $88,692
Austria’s membership in the EU fosters exposure to various economic systems and with institutions like the Austrian Institute of Economic Research, economists are offered avenues for impactful research and policy analysis. It is one of the highest paying countries for economists.
13. United Arab Emirates
Average Salary: $92,461
UAE has a strategic location while being a global business hub with a tax-free environment and strong emphasis on innovation. Thus, the UAE provides a dynamic platform to study and shape economic policies in a stable and multicultural setting. UAE is one of the highest paying countries for economists in Asia.
12. Norway
Average Salary: $92,858
With its abundant natural resources, progressive policies, and emphasis on renewable energy, Norway stands as a model for economic stability and environmental consciousness. It is one the best countries for economists.
11. Netherlands
Average Salary: $92,901
Becoming an economist in the Netherlands opens doors to a dynamic economy known for its strong global trade ties and innovative industries like agriculture, technology, and energy. It is one of the highest paying countries for economists in Europe.
10. Finland
Average Salary: $93,385
Finland’s commitment to research and development, along with a strong emphasis on work-life balance, creates a conducive environment for economists to thrive and contribute to sustainable economic growth.
9. Ireland
Average Salary: $96,993
Ireland has a resilient economy known for its multinational corporations, research centers, and promising financial sector. As an economist, one can actively contribute to shaping Ireland’s economic policies with a strong focus on sustainability and innovation. Notable institutions like Trinity College Dublin, University College Dublin, and the University of Limerick offer exceptional economics programs that can position one for a rewarding career in economics. It is also one of the highest paying countries for dentists.
8. Australia
Average Salary: $99,413
Economists in Australia are usually employed in institutions like the Reserve Bank, Australian Bureau of Statistics, and consulting firms like Deloitte and PwC. The country offers competitive salaries, with an annual average salary around $99,413. Australia’s immigration processes, like the skilled visa program, facilitate individuals from around the world to pursue careers in different fields, including economics. It is one of the highest paying countries for economists.
7. Canada
Average Salary: $99,786
Becoming an economist in Canada can be a hot career choice owing to the strong economy, vast industries, and excellent education systems in the country. With top universities like the University of Toronto and UBC offering world-class economics programs, Canada is a popular country for economics degrees.
6. Belgium
Average Salary: $99,980
With esteemed institutions like KU Leuven and Université catholique de Louvain, one can access top-notch economics education. Belgium’s economy thrives on trade and finance, that presents a plethora of opportunities for economists. Its presence as a key player in international organizations such as the EU and NATO further enhances prospects for economists in policy-making, research, and consultancy roles.
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Disclosure: None. 15 Highest Paying Countries for Economists is originally published on Insider Monkey.
