What can I earn?

THIS year I will complete a PhD in economics. I would like to use my doctorate to work as an economist. How much can I expect to earn in this field, and how does this compare with other careers?

With a PhD, you will have the right level of qualification to join an organisation as a professional economist, although a few organisations do employ junior economists below this level. At professional economist level, the median base salary is about £34,000. This is almost exactly the same as the median base salary for all job functions at this level, so initially there is no additional premium to compensate you for all those years’ studying.

But as you move up to the next level, base salaries increase to about £46,000, which is about 20 per cent higher than the general market for other jobs at that level. There is then a premium for economists of about 15 per cent to 20 per cent at all other levels above this — so in the long term your PhD will pay off. However, there are relatively few positions for economists; organisations that employ them range from blue-chip companies to financial institutions and government departments. If you wish to maximise your earnings, the financial institutions tend to pay the highest, and London-based investment banks in particular, where salaries for economists can be much greater than the market average.