Why Major in Economics?

Labor Market Outcomes by College Major

Clark University — Department of Economics

2026-04-02

The College Wage Premium

College graduates consistently out-earn workers with only a high school diploma.

Figure 1: Median annual earnings (2024 dollars). Source: NY Fed / CPS.

Early-Career Wages by Major

Where does Economics rank?

Figure 2

Early vs. Mid-Career Wages

Economics majors see strong wage growth over their careers.

Figure 3

The dotted line marks equal early- and mid-career wages. Points above it grow the most — hover to explore!

Underemployment Rate by Major

Underemployment = working in a job that doesn’t require a college degree.

Figure 4

Economics vs. Business Majors

Same wages, fewer grad-school degrees needed — or: equal grad-school investment, far higher wages.

Figure 5

Economics achieves the highest mid-career wage ($115K) among all business-related majors. Early-career wage ($72K) matches Finance — before accounting for grad school leverage.

The Economics Advantage — At a Glance

Figure 6

Each axis shows Economics’ percentile rank relative to all majors (higher = better).

Key Takeaways

  • College pays off — the wage premium over high school has held for 35+ years
  • Economics ranks in the top quartile for both early- and mid-career wages
  • Low underemployment — Economics graduates typically work in degree-requiring jobs
  • Graduate school option — ~40% of Economics grads pursue further education, keeping options open

Want to know more?

Visit the Economics Department or speak to your advisor. Data source: NY Fed — Labor Market for Recent College Graduates