Deciding if a PhD is right for you

Summary

This resource synthesizes advice from a variety of sources, such as the American Economic Association, economics faculty members, and the authors' own experience, on deciding to apply for PhD programs in economics and related disciplines (e.g., political science, public policy, agricultural or applied economics, etc.).¹

Is a PhD right for you?

Deciding whether to pursue a PhD is a major life decision. Navigating the PhD admissions process can be stressful and uncertain, especially with limited information available to prospective applicants and admitted students. Implicit biases and uneven access to mentoring, networks, and resources can make it especially difficult for international foreign applicants and applicants from underrepresented backgrounds to gain admission to top PhD programs in the United States and Europe.

PhD programs are designed primarily to train academics, but most PhD graduates end up working outside of academia. Many PhD students decide to pursue jobs outside of academia because jobs in industry or policy can offer higher salaries or opportunities to work on more applied projects without teaching responsibilities. Others end up in non-academic jobs because they are unable to secure a tenure track position at the type of university or in a location they desire. Accounting for academic and non-academic opportunities, PhD economists have higher rates of employment than PhDs from other disciplines.

Should you still consider a PhD if you don’t want to be a professor?

There is a big opportunity cost associated with pursuing a PhD. PhD stipends at top US programs are generally around $20,000-$40,000 per year. The median time to degree in US economics PhD programs is 5.8 years, and having a master’s degree doesn’t always make it shorter. A PhD may not necessarily improve competitiveness for non-academic jobs. For example, a new PhD graduate going into consulting would likely start at the same level as a new MBA graduate. 

However, skills developed in PhD programs can be valuable and applicable to non-academic jobs. For example, graduates of top PhD programs in economics and political science often develop high level data science skills, which are appealing to big tech companies like Google and Meta and some government agencies and multilateral organizations like the World Bank. In addition, while PhD programs are longer than master’s programs, many are fully funded, allowing students to graduate without significant graduate student loan debt.

The stress, workload, and lack of regular structure that PhD programs entail can make it difficult to maintain a healthy work-life balance. Therefore, general interest in research and the PhD credential alone may be insufficient to maintain the motivation and focus required to complete a PhD program. Before applying to PhD programs, applicants should be confident in their ability to manage their time and stay self-motivated on complicated, slow-moving projects. It is also worth noting that perceptions of PhD research often differ from reality. For example, some students may spend more time on tasks like managing foreign research permits and data cleaning than on tasks like data collection, analysis, and writing.

Will a PhD from a top program make me competitive for a tenure-track professorship at a top-tier research university?

Not necessarily. Top PhD programs produce far more PhDs than the number of open tenure track professor positions in these departments each year. Consequently, PhD candidates from top departments are more likely to find assistant professor jobs at lower-ranked departments, which makes the job market even more competitive for graduates of lower-ranked departments. 

Should I do a predoc or a master’s first?

In the United States, master’s degrees are not required for admission to PhD programs. However, particularly for students who completed their bachelor’s degree abroad or whose undergraduate grades may not be stellar, master’s degrees can make applicants more competitive even though completing a master’s degree prior to a PhD does not necessarily shorten the time it will take to complete the PhD. 

Predoctoral research assistant positions (predocs) have become increasingly common (mainly in economics) in the past few years and can be an alternative to completing a master’s degree. Predoc programs are generally designed as an apprenticeship model, where predocs work directly with professors on research projects. Predoc programs also offer a more hands-on sense of what PhD research entails, which may help prospective applicants make a more informed decision about applying to PhD programs. Additionally, the supervising faculty member may be able to write a more compelling letter of recommendation, reflecting on the applicant’s demonstrated research skills from working on research projects. 

For individuals interested in pursuing a PhD in economics, predocs can be a more attractive option than a master’s because predoc positions are paid, whereas master’s students are not paid and need to pay tuition (which can be very expensive in the United States, and most master’s programs do not offer full scholarships or stipends). Some predoc programs also offer the opportunity to take classes during the predoc. More information about predoc programs including practice tests can be found at PREDOC (Pathways to Research and Doctoral Careers). 

For applicants with gaps in their undergraduate transcript (e.g., less than stellar grades or a major in a different discipline) and for students who completed their bachelor’s degree at a lesser known university (e.g., a small university in a foreign country), a master’s degree could significantly improve one’s chance of admission. For more perspectives on the merits of pursuing a master’s before a PhD, see posts by Professors Dick Startz (UCSB) and Miles Kimball (Colorado).

Where to Apply

Selecting the right programs to apply to is a crucial decision that can streamline the application process and pave the way for a successful academic journey. J-PAL affiliates noted what to keep in mind when deciding where and how broadly to apply:

• Apply broadly but only to programs you are certain you want to attend. A PhD is hard and has a high opportunity cost, so while it is advised to apply to many programs, apply to programs where you know you would accept the offer if it were the only offer you received.
• If application fees are a barrier to applying, request waivers when possible. Recognizing the financial burden applications can impose on prospective students, many universities take steps to alleviate the cost by offering application fee waivers. Although eligibility criteria differ by university, waivers are typically needs- or background-based (e.g., educational pipeline programs for underrepresented groups).
• Look for departments with strengths in multiple fields. Your interests may evolve as you progress through your PhD journey—finding a department with expertise across different fields will give you more flexibility to change your research area or track during your PhD.

How many schools should I apply to?

The average acceptance rate at top-25 ranked economics PhD programs is approximately 10% among an already self-selective group of highly qualified applicants. Given the abundance of qualified applicants, admissions decisions can be quite idiosyncratic. Departments seek balance across subfields and faculty advisors, so applicants' particular research interests can make them more or less competitive in ways that are difficult to predict. In addition, different professors and PhD students serve on the admissions committee each year, and each committee member may evaluate candidates and weigh criteria differently. Given the levels of competition and unpredictability, candidates often apply to a large number of programs (10-20), especially if targeting highly ranked schools. Most universities offer application fee waivers for applicants from low income backgrounds.

How do programs in Europe and North America differ?

There can be substantive differences in program structure and application processes for PhD programs in Europe and North America. While there are also differences across different PhD programs within Europe and the United States, the following differences are common when comparing many (but not all) European versus American doctoral programs: 

• Application processes: European doctoral programs often require master’s degrees and a dissertation proposal as part of the application package. Some European universities offer doctoral tracks for 2-year master’s programs, which allow successful students to continue directly into the doctoral program in the same department. Although some North American PhD students complete master’s degrees before the PhD, this is typically not required. US programs do not require a full dissertation proposal as part of the application. Instead, applicants to US programs describe their research interests more broadly in a statement of purpose. 
• Coursework and dissertation: In North American programs, PhD students spend the first two years focusing on coursework and exams. In these programs, students typically only develop their dissertation prospectus in their third year after completing coursework. By contrast, in many European programs, PhD students begin research right away and are therefore expected to have a more detailed sense of their research agenda, and in some cases, their specific research question and design, when they apply. Most European PhD programs also have some course requirements (e.g., advanced microeconomics and econometrics) but these requirements are often smaller for the shorter programs, and sometimes they are not contained to the first year. However, some European PhD programs, such as the Zurich Graduate School of Economics, follow the US model with two years of coursework in a five-year program. 
• Program duration: Many European PhD programs are 3-4 years (though average completion times are longer for top programs) while US programs are typically 5-7 years. Entering US programs with a master’s degree can sometimes shorten program duration, while collecting original data or conducting fieldwork often extends it.
• Advising: In North America, PhD students are advised by a dissertation committee of 4-5 professors, of whom one or two is a chair or co-chair. As a result, in North American programs, it is less important to have one advisor with perfectly aligned research interests. Instead, a student may have one committee member who specializes in the same methods, another who focuses on the same region, and another who studies the same topic (but with different methods or in a different context). 
• Funding: Most top-ranked US PhD programs offer a full funding package, e.g., five years of guaranteed tuition plus stipend (usually with some teaching assistant or research assistant requirements) to all admitted students (including international students). In some European countries, especially in Scandinavia, PhD students are treated as employees with salaries and benefits. However, top-ranked PhD programs in some European countries such as the United Kingdom and Italy do not automatically offer funding packages along with admission, requiring students to apply for separate fellowships to cover the cost of living. Some US PhD programs also do not guarantee full funding packages to all admitted students so it is advisable to check tuition and stipend arrangements for each program individually.

Regardless of whether applying to PhD programs in North America or Europe, if one’s goal is to become a tenure track (or equivalent) professor in a top-ranked university in either region, it is advisable to pursue PhD programs in top ranked universities with a strong track record of placing PhD students in such positions after graduation. Many PhD programs feature their “placement record” from recent years on their department website, which can be informative for prospective applicants seeking traditional academic careers.

We encourage prospective applicants to explore the additional resources listed below, including mentorship programs for underrepresented groups and advice from professors on applying to PhD programs.
 

Mentorship resources

Several organizations offer mentorship resources and programs for aspiring PhD applicants from underrepresented groups. See the University application support and mentorship programs resource for a full list of programs available across different regions.