Business Tycoons

The relationship between Harvard and economics is as old as time. Names such as Bill Gates, Raj Chetty, Tom Cotton, and Abhijit Banerjee all studied economics at Harvard and used the experiences and knowledge they gained in their undergraduate years to pursue noteworthy careers. Harvard College’s Department of Economics has graduated two of the first three American Nobel Laureates in Economics as well as educating one-third of the American Economic Association Presidents since World War II. The Department of Economics continues to rank among the top in the world, simply due to the diverse and staggeringly qualified number of professors who consistently empower their students. Essentially a feeder for future workers in the private sector or for-profit firms,  economics has developed into a disproportionately desirable program that graduates about one-third of students per year, according to a study conducted by the College itself. The most popular paths after graduation for economics concentrators include consulting, finance, market research, risk analysis, and social enterprise. However, these students often receive the all-too-known question of whether their academic or extracurricular aspirations stem from genuine interest or the pursuit of financial security. Unlike students whose aspirations require more than just undergraduate experience, economics concentrators who strive to fill these respective roles tend to see virtually instant financial success. 

Consulting in particular draws a sweeping amount of students as it doesn’t cater to one particular field. The more commonly known “general strategy” firms that traditionally take Harvard students, such as the Big Three, (McKinsey & Company, Boston Consulting Group, and Bain & Company), encompass a wide range of industries, such as healthcare, government, and technology, rather than only focusing on one. This allows students who don’t necessarily find a fascination for one particular area of focus to use their skills for a broader use. “Coming to Harvard, I wasn’t 100% sure what I wanted to do,” says Mimi Tarrant ’21, who will work as a business analyst at McKinsey upon graduating. “The attraction with consulting is that it is very multifaceted and diverse in the work that you’re doing and the projects that you’re working on.” Other benefits include the plethora of opportunities that consulting firms present, such as access to the worlds of private equity, asset management, entrepreneurship, as well as developing a foundation of experience for business school. 

While it is true that entering consulting does not necessarily pigeonhole you into a particular field, the industry allures employees to stay long-term due to its incredible starting and base salaries. For undergraduate students, each of the Big Three firms offers new hires a $5k signing bonus, in addition to base salaries no less than $107k, according to a salary report conducted by the coaching firm Management Consulted. It’s no secret that consulting and financial analysis rank among the highest paying jobs for recently graduated students, yet this financial precedence is precisely what leads many to believe that these students’ interest is rooted in reasons far beyond a passion and genuine appreciation for the work they are doing. 

The work of financial analysis and business consultation has the tendency of being cryptic to the public eye, which only furthers any possibility for skepticism. Unlike college students specializing in pre-medical or pre-law studies, where their ultimate positions as doctors, attorneys, or anything that requires further years of schooling, a job as an analyst or financial consultant straight out of undergrad yields a respectable income almost immediately. Because there officially is no further test to weed out the individuals who lack the attributes to succeed in the field (such as MCAT, LSAT, etc), it is relatively difficult to assess the true depth of the individuals’ resilience and enthusiasm. Extensive interviews typically help determine whether or not an applicant shows interest in the firm rather than their interest in the career. Although a handful of investment banking firms require licensing exams, the prerequisites for these entry level jobs are considerably easier than other longer term commitments directly out of college.

Many Harvard students share similar stories in their paths to landing jobs in a major consulting firm. Starting in the summer before their Junior year, students explain the research and networking to potential connections they do to prepare for recruiting season. Junior fall, for prospective consulting analysts, encompasses an overwhelming amount of interviewing,  coffee-chats, applications, and deadlines. Luckily, Harvard has a strong base of resources for curious students, even having Harvard specific recruiters come from each consulting firm. 

Tarrant, in recognizing her success in the recruiting process, discloses her opinion on Harvard’s biased emphasis on particular undergraduate studies. “Harvard is very much geared up for finance and consulting recruitment,” she says.“One of the drawbacks of [the school] is that it is not prepared to recruit for other jobs […] Although I was lucky in that process, I recognize that they do need to diversify what firms that they recruit for and change the culture around recruiting on campus.”

In addition to consulting, many students in previous or current economics concentrations pursue careers in private equity, investment banking, or entrepreneurship. Yet because the skill sets and  general premise between these occupations aren’t that different, the reasons for prioritizing a certain path over the other are not binding. For Renee Fergueson ’23, a current gap-semester student interning at an investment banking firm, the initial draw for concentrating in economics as well as pursuing a career in investment banking was “a lack of anything else that I really wanted to do,” she says. “If I was super passionate about something else, then I would probably pursue that.” The combination of a being in a field that generally doesn’t require commitment to additional years of schooling, as well as a providing promising starting salary evidently contributes to the concentration and subsequent fields’ level of attraction.  Jack Stone ’19 concentrated in economics and says, “the majority of Harvard economic students do it because they are interested in business and have no interest in economics itself.” Now an associate consultant at Bain & Company, Stone, like Tarrant, chose the field of consulting because of the opportunity it provides as a profession that doesn’t require immediate specialization to one specific domain. 

Do Harvard students pursue economics concentrations out of passion or pragmatism? It seems that many students choose their pathway with a mixture of both in mind. Here’s another question: does it really matter why a student wants a particular job if they do the work and requirements necessary to succeed? Some might  argue that any motivation independent of true ardor is shallow, unsubstantial, and meaningless. Yet the contrary perspective suggests that not everyone has a passion or specialization for a niche subject, and that the ultimate result of financial security justifies the means it takes to reach it.  

Marbella Marlo ’24 (mmarlo@college.harvard.edu) writes Forum for the Independent.