This paper has a large readership with diverse educational backgrounds. The subset of those readers who also will read this column is smaller, but you likely still possess a range of levels of educational attainment in a range of fields and from a range of institutions.
Many of you, though, will have taken at least one course in economics, either at the high school level or above. And if you think back on those courses, chances are almost all of your economics professors had something in common—they weren’t black.
According to the most recent data published by the American Economics Association’s (AEA) Committee on the Status of Minority Groups in the Economics Profession (CSMGEP), only 5.16% of Bachelors Degrees in Economics, 7.43% of Economics Masters Degrees, and 2.8% of PhDs in Economics were awarded to Black or African American scholars. In fact, African Americans and other minority groups have lower representation in Economics than in STEM subjects at all degree levels.
The New York Times reported this month that across all of its branches and the board of governors, the Federal Reserve employs 870 Ph.D. economists, only 11 (1.3%) of whom are Black, single-race. Six (0.7%) are two or more races, races not specified.
The Times article also rightly points out that is a pretty big problem in a field responsible for advising policymakers on how best to allocate resources.
It is tempting, as an economist, to think that since what we do is focused on data-driven fact-finding, it does not matter who the economist is, what they look like, or what their background is. We all should arrive at the same advice for policymakers if what we are doing is simply describing what is and not what should be.
But, anyone who has worked much with data or even has watched news reports of data knows this is not true. Two economists, equally skilled and equally committed to fact-finding, can analyze the exact same data and come to different conclusions.
Every model and every study begins with a set of underlying assumptions. Those assumptions can differ depending on the researcher’s knowledge, experience, and training. Often, a researcher considers many possible starting assumptions before deciding on the most appropriate assumptions on which to found their model. Increasing diversity among researchers increases the pool of assumptions considered and increases the likelihood of producing the most accurate analysis and interpretation of data.
Perhaps an even greater reason to work toward increased diversity among economists is a need for greater interest in and ability to study issues of concern to minority populations. According to Newsweek, less than half of one percent of all articles published in the top five economics journals between 1990 and 2018 addressed issues of race or ethnicity.
This blows my mind! We know there is a strong correlation between race/ethnicity and economic outcomes. And we know, theoretically, that markets do not discriminate on race/ethnicity. The economics profession must commit ourselves to studying the historical interaction between race and market outcomes and understanding where reality deviates from theory. Only then can we rightly advise policymakers on how to improve outcomes for minority individuals and families.
Recruiting diversity into the profession is the best way to begin to see this change.
So, what are we doing about it? The AEA has stated its intention to focus on diversity initiatives and has begun to do so.
But, for us, the effort begins at home. Students in the School of Business and Public Management at College of Coastal Georgia are diverse in race and ethnicity, and most of them are required to take at least one, usually three, economics classes before graduation. We are intentional to include in these courses a diversity of perspectives as well as topics of special interest to minority students. And when we notice that student of any race or ethnicity has a knack for the subject, we encourage that student to consider an economics concentration and possibly graduate school in economics.
We are committed to joining with the AEA in increasing diversity in economics. The future of the field depends on it.
————-
Dr. Melissa Trussell is a professor in the School of Business and Public Management at College of Coastal Georgia who works with the college’s Reg Murphy Center for Economic and Policy Studies. Contact her at mtrussell@ccga.edu.
Reg Murphy Center