Issue 8, Fall 1994

William A. McEachern, Editor

Decline In Degrees

The number of undergraduate economics degrees awarded increased on average by 3.6 % per year between 1977-78 and 1989-90, climbing from 15,661 to 23,488. This total fell by 1.8% in 1990-91. Though totals are not available after 1990-91, a survey of 127 institutions points to a drop of 0.2% in 1991-92 and an eye-popping drop of 14.2% in 1992-93. The decline began at private four-year colleges in the mid-1980s, then moved to public institutions. Especially hard hit in the most recent year were graduate degree-granting public universities, where the number of undergraduate economics degrees awarded dropped by 17.2%. Since the total number of bachelor's degrees awarded continued to climb during the 1990s, degrees awarded in economics declined as a proportion of total degrees awarded.

The percent decline in undergraduate economics degrees awarded was nearly identical between those institutions where the economics department is located in the business school and those institutions where it is located in the college of liberal arts. About one quarter of the decline in undergraduate economics degrees awarded can be explained by a decrease in the proportion of economics degrees awarded to women. Women earned 34.1% of the undergraduate economics degrees awarded in 1982-83, but only 30.0% of those awarded in 1992-93. For more details see John J. Siegfried and Charles E. Scott, "Recent Trends in Undergraduate Economics Degrees," Journal of Economic Education, (Summer 1994), pp. 281-86.

The 1980s were boom times for economics majors, so we did not have to promote the merits of the major. Now that enrollments are waning, perhaps it's time to market the benefits of economics. One benefit that seems clear is that economics courses sharpen a student's critical-thinking skills.

Top