The landscape of higher education, especially within the realm of economics, is undergoing a notable shift. It has become an area marked by a certain level of exclusivity, often perceived as the domain of the elite. Jacqui Dwyer of the Reserve Bank of Australia (RBA) sheds light on a troubling pattern: economics majors at universities are predominantly drawn from affluent backgrounds, with a pronounced majority being male students. This gender disparity is not a new phenomenon; however, it persists despite educational advancements and efforts to level the playing field. In the meantime, business, finance, and banking majors continue to soar in popularity, offering clearer career prospects and more explicitly defined employment pathways, thus eclipsing economics in the eyes of many students.
The decline in university economics courses is not limited to gender disparity; socioeconomic diversity among students is also waning considerably. Currently, over half of the students pursuing economics hail from privileged backgrounds, which starkly contrasts with other areas of study. Starting from high school, students of lesser means encounter barriers to accessing economics courses, and this disadvantage rolls over into university level, perpetuating the imbalance. The geographic concentration of economics students – heavily skewed towards the metropolitan regions of New South Wales and the Australian Capital Territory – highlights another facet of the problem: students from non-metropolitan areas are underrepresented, which points to systemic accessibility issues.
The Persistence of Gender and Socioeconomic Disparities
Even among those who have studied economics in high school, the continuation to tertiary education in the subject remains low. Despite targeted initiatives to boost female participation, these numbers are not rising significantly enough to close the gender gap. The socio-economic divide begins early, rooted deep in the educational pathways of high schools, and lingers stubbornly through to universities. It’s a concerning trend that threatens the diversity and richness of perspectives necessary for the field of economics, which inherently studies the allocation of resources and societal norms. Moreover, there exists a marked urban bias in enrollment figures, often a reflection of the varied educational opportunities available in larger cities compared to rural areas.
However, it’s not all bleak for the field of economics. Dwyer emphasizes the beneficial outcomes that an economics degree can yield, referencing RBA data that points to competitive average earnings for those in the economics profession. The multifaceted skill set acquired from studying economics – including analytical thinking and data interpretation – are skills in high demand among employers. These capabilities stretch across a myriad of job roles, encompassing areas such as business analysis, policy development, and financial journalism.
The Value of Economics Education Amidst Challenges
The higher education sphere, particularly in economics, is witnessing a transformative shift. Jacqui Dwyer from the Reserve Bank of Australia highlights a concerning trend: the field tends to attract students from wealthy families, with males dominating the major. This imbalance of gender and wealth persists despite attempts to democratize education. While other majors like business and finance gain popularity due to clear job outcomes, economics is overshadowed and less frequented by students.
University courses in economics are seeing a decrease not only in gender diversity but in economic diversity as well. Over 50% of those studying economics come from affluent backgrounds, unlike in other disciplines. From high school onward, economically disadvantaged students face hurdles to studying economics, an obstacle that continues into higher education, deepening the divide. Further exacerbating the issue is the fact that students studying economics are predominantly from urban areas in New South Wales and the Australian Capital Territory, which indicates systemic issues in access for those from rural regions.
