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In the past, this blog has reported the average salaries of recent economics PhD graduates.  For Econ PhD graduates in 2009, we can update these figures as follows using more recent data.  For instance, below are the average (median) starting salaries of recent economics grads by the type of institution by which they were hired.

  • University: $92,600 ($89,500)
  • College: $77,100 ($70,000)
  • Policy/Applied Research: $85,800 ($90,000)
  • Central bank: $105,700 ($110,000)
  • Private Firm: $115,500 ($120,000)

Of the people in the survey, the percentage of individuals who accepted jobs at the following types of institutions were:

  • University: 63.6%
  • College: 8.6%
  • Policy/Applied Research: 10.2%
  • Central bank: 6.2%
  • Private Firm: 11.4%

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Merrill Goozer reports that “While the rest of the economy was shedding nearly 600,000 jobs and the nation’s once-proud automobile industry went begging for a bailout,” the health care sector actually added 52,100 jobs last month.

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I am currently on the “Job Market.”  I will receive my Ph.D from UC-San Diego this spring and hope to have a job for next fall.  There are lots of advice papers on what graduate students should do to maximize their chances of getting a job.  Yet few graduate students ever learn what the labor demanders want.  What are universities thinking during the hiring process?

A paper by Jessica Holmes and David Colander examines this question.  They review their experience trying to hire a faculty member at Middlebury College in Vermont.  The complete article is available here.

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Most people do not understand what a health economist is. Where do they work? What do they do? How do they spend their time?  How are they trained?

A paper by Morrisey and Cawley (Health Econ 2008) attempts to answer this question. The authors conducted an online survey to achieve a better understanding of what health economists do.

Training

Ninety-three percent of health economists have a Ph.D. A few health economists have an MD (2.6%), an RN (1%) or a JD (<1%) in addition to their PhD. Of those with a Ph.D., 72% have a Ph.D. in Economics. Below are a list of the economics departments that have trained the most health economists in the sample:

Institution Health Economists trained in the sample
Wisconsin 16
Chicago 11
Michigan 9
Yale 9
Harvard 8
MIT 8
Univ. of Washington 8
Maryland 7
CUNY 7
Stanford 6
UC-Berkeley 6
Boston University 5
Washington Univ. (St. Louis) 5
   

Seventy-six percent of health economists wrote a health related dissertation, even though 2/3 of graduate programs lacked a formal health economics field. For instance, at UCSD I am writing my dissertation on health economics even though there is not established program.

Employment

Where do health economists work? Most work in academia (64%), but a large percentage also work for the government (12%), NGOs (15%) or the private sector (9%). Of those who are academically employed, below is a chart detailing where their principal appointment is located.

Appointment Percentage
Public Health 26%
Medicine 18%
Arts & Science 17%
Business 16%
Public Policy 6%
Other 17%
Total 100%
   
Economics Dept. 24%
   

For those who work in public health or medical school about 50% of their salary is made up from funding from external grants and contracts.

Research Interest

Below is a chart detailing the subspecialty of the health economists in the survey.  Respondents could choose multiple options.

Subspeciality Percentage
Behavior of Individuals (e.g.: Labor Econ) 50%
Behavior of Firms (e.g.: Industrial Organization) 34%
Government policies (e.g.: Public Finance) 50%
Health Insurance 48%
Outcomes Research (CEA, CBA, Burden of Illness) 50%
Other 31%

After reading this post, hopefully you now have some idea of who health economists are and what they do.

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