Economic Consulting as a Career
Description of the Job
Advise corporations and government organizations regarding the intersection of business, economics and law. This may involve assessing the damages when a firm is accused of doing economic harm to another firm, forecasting current and/or future liabilities stemming from an environmental product liability, or determining whether price movements were consistent with an alleged manipulative scheme in a particular market.
Economic consulting firms are hired to consult on a case or dispute. In these cases, there will generally be one expert (often a faculty member from a university economics department or a business school) who will be supported by a partner at the consulting firm and team of analysts, who assist in conducting the analysis and assist in the preparation of the expert's report. Usually the dispute is settled before going to trial, but if the case goes to trial, the expert may testify.
Fast Facts
- Number of hours per week40 for light weeks, 55-65 for busy weeks
- Average starting pay73k nationally. ~$85k for top firms
- Amount of travel requiredLittle to none
Roles & Responsibilities
- Research, document, report, and design and build financial and statistical models
- Research may consist of collecting raw data from internal sources, such as the client's computers or employees, and from external sources, such as trade associations or government agencies
- Review documents lawyers provide from the case
- Analyze data and create charts, graphs, and visualizations to communicate findings
Skills Needed
- Time management: Economic consulting analysts usually work on 2-3 projects at a time, so it’s important to allocate time properly and manage various tasks at the same time
- Data analytics: Analysts spend a large amount of time analyzing data and finding insights. Knowing how to use statistical packages like SAS or STATA is a plus
- Field Knowledge: economic consultants work heavily with law and economics, so knowledge and interest in those areas are critical
- Communication Skills: economic consultants must have strong written and verbal communication skills and the ability to communicate well with others who may not be as knowledgeable about economics.
Steps to Enter The Field
- A bachelor's degree is required for economic consulting for an entry-level position such as analyst or associate. Some common majors for this career include economics, business analytics, political science, and finance.
- An MBA or PhD may be required in order to advance in the field to a higher position, such as senior economist, consultant or manager.
- Top candidates will also have previous experience in the business world (consulting internships are impressive but not required) as well as extracurricular achievement. Other helpful internships may include other consulting roles, business analyst research assistant, data analyst, etc.
- Many colleges/universities have consulting clubs on campus, and they can be a great way to develop consulting experience and prove one’s abilities to consult. While the work is quite different than economic consulting, it is still a great way to gain experience.
- GPA, work experience, and leadership roles are important, especially for top consulting firms.
Landscape of the Field & Companies in the Field
- Some top firms that specialize in economic consulting include: NERA Economic Consulting (parent company is Oliver Wyman), Cornerstone Research, Bates White, TM Financial Forensics, Analysis Group
- There are also many large management consulting firms that have economic consulting divisions. Some of the top players include McKinsey & Company, Boston Consulting Group, Bain & Company, Deloitte, EY Parthenon, Charles River, and PwC Strategy&
External Resources to Learn More & Develop Skills
- Excellent blog about 5 reasons to do Economic Consulting (from someone with experience at Cornerstone Research)
- Practice cases: Case interviews are a large part of the interview process for economic consulting firms. Cornerstone Research provides these practice cases
- Additional details on Economic Consulting: University of Virginia includes many details on economic consulting career path, including description, career path, qualifications, etc.
Related Careers
- Management consulting, strategy consulting, technology consulting, marketing consulting, financial analyst, risk advisory, business strategist, business analyst
Informational Interviews
Sonya Jain
Company Name: Cornerstone Research
Title: Senior Analyst
Years of Experience: 3
Biography
Sonya Jain is a Senior Analyst at Cornerstone Research. She graduated from Santa Clara University in 2018 with a major in Finance and minor in Management Information Systems. She held various finance internships and one economic consulting internship during college, then joined Cornerstone after graduation. She was promoted to a Senior Analyst after only 2 years.