June 1, 2006
Aren't You Glad You Majored in Economics?
From the Journal of Economic Education (hat tip to "Truth on the Market") comes the first study I'm familiar with examining whether the choice of undergraduate major has any effect on a lawyer's career earnings. And guess what? If you major in economics, it helps; majoring in anything else makes no difference.
Here's the abstract, in full (emphasis supplied):
"Using nationally representative data, the authors examine the effects of preprofessional education on the earnings of lawyers. They specify and estimate a statistical earnings function on the basis of well-established theory and principles. Along with standard control variables, categorical variables are included to represent graduate degrees in addition to the law degree and an assortment of undergraduate major fields. Holding a Ph.D. or M.B.A. degree, with the law degree, is associated with significantly higher earnings in some sectors. Lawyers with undergraduate training in economics earn more than other lawyers, ceteris paribus, and economics is the only undergraduate field associated with earnings that differ significantly. The available evidence supports the hypothesis that economics training increases a lawyer’s human capital compared with other undergraduate majors."
That still doesn't mean Adam Smith would become a lawyer were he alive today; but I know in my heart that he would have an active and energetic blog.
Posted by Bruce at June 1, 2006 9:05 AM | TrackBackPosted to Adam Smith Himself | Compensation | Finance | Just Plain Interesting Printer-friendly version
Post a comment
Thanks for signing in, . Now you can comment. (sign out)
(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)
"Adam Smith, Esq. is, and will remain, the definitive voice on law firm strategy."
—David Jabbari, Global Head of Know-How, Allen & Overy
“Esteemed
sir: Your analysis is, as ever, spot on. I AM enjoying ‘Adam Smith,
Esq.’—you’re a thoughtful person. Ever-stimulating and readable.”
—David
Maister
“Outstanding;
very insightful.”
—UCLA Law Prof. Stephen
Bainbridge
“Always must-reading.”
—Charles Green, co-author of The
Trusted Advisor
“You have a fascinating niche which you cover ever so much better
than does the conventional legal press.”
—Walter Olson of Overlawyered
“One of at most half a dozen true thought
leaders online. Unsurpassed.”—Bruce
Marcus
“Required reading:
Amazing.”—Venture Capitalist
"You're the brand
name in law firm economics. There is no one out there—repeat,
no one—who covers this business better, or thinks about it more
creatively, than you. I tell people this guy is really, really good."
—Chair/Managing
Partner, AmLaw 50 firm
Business Pundit
CorporateCounsel.Net Blog
Conglomerate
BusFilm by Larry Ribstein
Business Pundit
Carnival of the Capitalists
Chicago Boyz
Ensight
Marginal Revolution
Ronald Coase Institute
Stephen Bainbridge
"Adam Smith, Esq.,"® an inquiry into the economics of law firms, and the maroon banner, are a federally registered trademark belonging to Adam Smith, Esq., LLC, which is partially owned and controlled by Bruce MacEwen.
This weblog is licensed under a Creative Commons License.
