Should we start thinking of Economics not just as a social science? The changes in higher education point towards yes.
STEM fields are getting more attention lately. Colleges are now looking at how they classify subjects like Economics. This isn’t a minor detail. It’s a big deal that changes what students learn, their chances, and how different studies connect. Let’s look into the shift of Economics into STEM, especially at the University of Rochester. Their program has focused more on technical skills since Autumn 2020.
Economics majors now have a new code, 45.0603, instead of 45.0601. This puts them closer to science fields. Other schools, like Missouri State University, are also moving Economics to STEM. This change doesn’t just redraw academic lines. It especially helps foreign students by allowing them up to 24 more months of practical training.
Key Takeaways
- Economics is increasingly being reclassified under STEM, transforming its educational approach.
- The new CIP code 45.0603 reflects a shift towards a quantitative and analytical curriculum.
- Universities such as UR and Missouri State are at the forefront of this change.
- International students benefit significantly from extended OPT options and broader career prospects.
- The reclassification fosters interdisciplinary studies, enriching both academic and professional landscapes.
Introduction to Economics and Its Classification
Economics looks at how people behave, make decisions, and use resources. It’s part of the social sciences. This subject covers tiny to huge aspects. These range from individuals to the entire world.
The main topics in economics include:
- Production and employment
- Investment and savings
- Health economics
- Banking systems
- Government taxation and spending
- International trade
- Industrial organization
- Urbanization
- Environmental issues
- Property rights
Economics crosses paths with fields like political science and psychology. Also, it’s becoming key in STEM. The debate goes on if it should be classified with them due to its math demands.
For instance, microeconomics looks at what individuals decide. It answers questions about saving or buying a car. Macroeconomics, however, looks at whole economies. It explores why joblessness happens.
Universities are now viewing economics as a STEM discipline. They’ve changed some programs to “Econometrics and Quantitative Economics.” This reflects its math focus.
Because of this, international students can stay in the U.S. longer. This change opens more doors in the field.
Studying economics is crucial for jobs in finance, consulting, and government. As part of STEM, economics students learn through numbers and facts. This way, they’re ready to solve big problems like trade and poverty.
This shift to STEM shows how vital and changing economics is. It’s a key part of both schools and jobs today.
The Bachelor of Arts in Economics remains strong. It teaches both theory and real-world skills. This readies students for many jobs.
The STEM Criteria: What it Takes to Qualify
STEM education is essential in today’s academia, blending science, technology, engineering, and math. It checks how economics can be part of STEM by using math and stats. These tools help analyze and predict economic trends.
Understanding STEM Education
STEM means bringing different subjects together to boost solving problems and thinking critically. It makes students ready for real-life problems. They learn skills that jobs today really want.
Economics fits into STEM when using stats and tech for data analysis. It focuses on using numbers and learning across disciplines. Thus, economics meets the STEM standards, especially when adding data analytics to the mix.
Integrating STEM into Economics
Economics is becoming more STEM-oriented. An example is Idaho State University. Starting Fall 2024, their Economics BS degree will be seen as a STEM field. This change highlights the focus on numbers and using data in studies. It reflects what job markets now require.
International students will especially find this useful. STEM degrees allow them a longer work period in the U.S. after graduation. This could mean up to three years, compared to one year for other degrees. But, the degree must be recognized as STEM, and the employer must follow certain rules.
Examples like Idaho State University show the shift in how economics is viewed. Changes at famous places like MIT and Yale also show this trend. This shift helps students and schools alike, making programs more appealing worldwide.
Why Economics is Seen as a Social Science
Economics is often seen as a social science because it studies human behavior when resources are scarce. It looks at how individuals and societies use resources to meet their needs and wants. This focus on choices and incentives makes economics a part of social sciences.
Economics also connects with fields like psychology, sociology, and cultural studies. For example, market psychology explores how people’s feelings affect markets and choices. This shows how important social and cultural factors are in economics.
Here are some main reasons why economics is still seen as a social science:
- Human Behavior Focus: Economics aims to understand how people decide what to do when resources are limited. This affects the entire economy.
- Interdisciplinary Overlap: Economics uses tools and ideas from sociology, psychology, and other fields to study complex social issues.
- Decision-Making Processes: Learning how individuals and groups make choices based on incentives is key to economic theory.
Economics mixes numbers and data analysis with studying people and society. This blend of hard data and social understanding makes it a unique social science.
Some argue economics should join the STEM fields because of its analytical depth. Indeed, leading universities like Princeton, MIT, and Yale consider their economics programs as STEM. Jobs for economics graduates are also among the highest paying, similar to those in computer science and engineering.
Despite these debates, the role of the social science economics remains crucial. It helps us understand how market psychology works within different cultures and societies.
Shifting Perspectives: How Economics Aligns with STEM
Today, we see economics merging with STEM more than ever before. This change happens because economics now uses math and science methods.
Mathematical and Analytical Methods in Economics
Economics uses lots of math and science to understand money and markets. Things like game theory and statistics help make sense of how economies work. These methods help predict economic trends accurately.
Economic Modeling and Predictions
Creating economic models is key to foreseeing market trends and behavior. These models use math to simulate possible future events. They help economists make predictions that inform policy decisions. Techniques from AI and machine learning are becoming more crucial in economics. This shows just how closely economics and STEM are connected.
STEM education serves as a cornerstone for economic prosperity by nurturing a skilled workforce that can tackle complex challenges.
| STEM Jobs | Economic Returns | Skill Requirements |
|---|---|---|
| Contribute to economic growth | Declines by 50% within a decade | Increased demand for AI and ML skills |
| Attract young workforce | Earnings premium highest at entry | High rates of skill change |
| Enhance productivity | Wage return to ability decreases with age | Technological changes consistent |
Is Economics STEM?
The change from viewing economics as a social science to a STEM field has big effects for colleges and their international students. It’s important to understand these changes to see the benefits and modifications happening in universities.
Reclassification Impact on Universities and Colleges
The STEM classification greatly affects universities and colleges. It pushes them to update their courses to include more math and technical studies. For example, Hamilton College now considers economics majors as STEM majors starting with the Class of 2023. This shows a strong move towards adding econometrics and quantitative economics into their main courses.
The U.S. Department of Education’s choice to classify Econometrics and Quantitative Economics as STEM is key. It aims to give students better analytical skills. This helps them understand and solve economic problems better. The changes include more econometrics in the curriculum, teaching students valuable statistics and data analysis skills.
Implications for International Students
STEM reclassification is great for international students. At The College of Wooster, 40% of economics majors are from other countries as of September 2021. Before, international students with non-STEM degrees could only train in the U.S. for a year after graduation. Now, with a STEM degree in economics, they can extend this training to three years.
This change also opens up more chances for international students to get higher degrees and H-1B visas after graduating. At places like Hamilton and Wooster, these changes help make the economics program more diverse. This makes the academic community richer and improves career options for their graduates.
Controversies and Challenges in the Reclassification
Economics being called a STEM subject has sparked big debates and issues with courses. Supporters believe this change matches the technical and numbers-focused side of economics today. On the other hand, critics worry it might ignore the part of economics that deals with society and ethics.
A key issue in the STEM argument involves changes in the curriculum. Since fall 2019, economics students only need one semester of Principles of Economics, not two. Although they still need the same amount of courses to graduate, there’s now an extra upper-level elective. This shift shows the struggle to keep both qualitative and quantitative teachings balanced.
Many students from other countries have wanted economics to be a STEM field for years. They see the career benefits. Earlier, students would pair economics with math to be considered STEM. This demand for STEM status shows the complex debate about education and jobs.
The change to STEM can really affect students. For example, it lets international students in the US stay two more years after finishing school. Economics being in STEM is expected to improve grads’ chances to network and give back to their colleges. Especially at Union College, more students might enroll in economics to get visa perks.
Yet, there are downsides to this STEM switch. Non-STEM programs like Managerial Economics might see less interest from international students. These issues highlight that universities must be thoughtful in their approach. They need to value both the hard science and societal parts of economics.
| Metric | Data |
|---|---|
| International Students in Economics Programs | 85% of graduate students, 40% of undergraduates |
| Visa Extension Opportunities | STEM majors can extend visas for an additional 2 years |
| Employment and Further Education | 52% employed in finance, consulting, banking; 43% in STEM master’s programs |
| Changes in Economics Curriculum | Core requirements reduced from two semesters of Principles of Economics to one, additional upper-level elective added |
| Enrollment Trends | Anticipated increase in STEM-designated economics majors, potential drop in non-STEM business degree enrollments |
Discussing these debates and challenges in economics education is key. We need to think about both the good and bad of calling it a STEM field. This conversation is still going and will shape how economics is taught in the future.
The Career and Educational Advantages of a STEM-Based Economics Degree
A STEM-based economics degree comes with many benefits, especially for career growth and learning chances. We’ll explore these advantages. We’ll see how important this degree is for students everywhere.
Enhanced Visa Opportunities for International Students
For international students, a big advantage is better visa options. The STEM OPT extension lets them work in the U.S. for two more years after graduating. This is great for their careers. It lets them get valuable work experience in America. They also help the economics job market.
Broader Career Prospects
Turning an economics degree into a STEM qualification opens up more job chances. Graduates are ready for both traditional and new kinds of jobs. The U.S. Bureau of Labor Statistics says STEM jobs will grow by 8% from 2019 to 2029. This growth is faster than the average for all jobs, which is 3.7%.
STEM careers are some of the highest paid. In 2019, 75% of the top 20 highest-paying jobs were in STEM fields. Every year, there are about 1.3 million new STEM jobs for people with a bachelor’s degree. But, there are fewer than 600,000 graduates to fill these jobs. This shows a big need for STEM graduates and a gap in the job market.
STEM economics degrees also improve skills in math, analysis, economic modeling, and predictions. Graduates can work in various jobs in both new and traditional fields. This degree meets the immediate need for skilled workers. It also prepares graduates for long-term success in a changing job market.
Conclusion
Reclassifying economics as a STEM field is a big change for education. It matches the needs of a world driven by data. Schools like Princeton, MIT, and Yale are getting students ready for tricky economic situations by teaching them math and statistics.
International and U.S. students alike benefit from this change. Students with F1 visas can now work in the U.S. for three years after graduation. This makes them more appealing to companies and improves their career options. Employers benefit by keeping talented graduates longer.
STEM-based economics shows the value of learning different subjects together. It gives students strong skills for analyzing data. This prepares them for many types of jobs. The future of learning economics is exciting. It will create economists who are ready to make a difference in our connected world. Their work will push both education and the economy forward, leading to new ideas and lasting achievements.
FAQ
Why is economics being reclassified as a STEM field?
Economics is now a STEM field due to its focus on math, statistics, and tech tools. These are used to understand economic trends and make accurate predictions. This change brings economics closer to STEM’s goal of combining science, tech, engineering, and math.
What criteria does a subject need to meet to be considered a STEM discipline?
To be STEM, a subject must blend science, technology, engineering, and math. It focuses on using analytical and quantitative skills to solve real problems. Economics fits this through statistical and mathematical analysis for forecasting.
How does this reclassification impact university economics programs?
University economics programs will add more math and tech content to their courses. They will include more on statistics and how to use technology for examining data. This aims to better prepare students for working with complex economic information.
What are the benefits for international students with a STEM-designated economics degree?
International students with this degree get more job options and longer visa stays in the U.S. The STEM OPT extension gives them two extra work years after graduation. This greatly improves their career outlook.
Why has economics traditionally been seen as a social science?
Economics has been viewed as a social science because it explores how people use resources and make decisions. It looks into societal, cultural, and psychological factors at both small and large scales. It uses qualitative methods to study these elements.
What are the main controversies in reclassifying economics as a STEM discipline?
Some say making economics a STEM subject could ignore its important social aspects. These include understanding society and ethical issues. Others think the change is needed because of how data and technology now shape the field.
How does this reclassification enhance career opportunities for graduates?
With a STEM background, economics graduates can enter wider job markets. They learn skills for jobs needing deep analytical and quantitative analysis. This makes them more competitive for many employment opportunities.
What role does economic modeling play in integrating STEM into economics?
Economic modeling uses math and quantitative methods to forecast economic outcomes. It’s crucial for matching economics with STEM, highlighting the importance of data analysis and evidence-based research.
