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Can you help out Economics Ph.D.s who are down on their luck?
Subject Changes in Supply and Demand
Topic Supply and Demand; Equilibrium
Key Words Supply and Demand
News Story

The supply of economists, as measured by the junior memberships to the American Economic Association, has increased by 14%, while the number of available jobs for economics Ph.D.s, fell by 10% last year. The main reason: university funding is drying up, causing the number of available slots for economics Ph.D.s to fall. At the same time, the number of positions demanded by the public sector--as well as Wall Street banks--has diminished.

Few people in Britain, however, seem to want to join the ranks of economists, as the discipline is seen as a dead-end field, unless studied and practiced in the US. At the same time, the demand for economic analysis in the private sector in Britain has caused the number of economists hired there to increase significantly.

(Updated October, 2003)

Questions
1.

Using supply and demand curves, indicate what has happened in the US market for economics Ph.D.s. Indicate the likely outcome on new-Ph.D. salaries as a result.

2. What would happen to the salary of economics Ph.D.s in Britain if some of the unemployed US economists went to work in Britain? Indicate this, using supply and demand curves.
3. What kind of impact would a recession have on the market for economics Ph.Ds? why?
Source "Unemployment Forecast." The Economist. August 7, 2003.

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