Why do economics majors make the big bucks?

Hat tip Tyler Cowen, link here.

It strikes me that the simple answer is: it’s the math. Having quantitative skills is a crucial differentiator for the part of the labor force that goes on to join the one percent. I think that those skills can also be found in other majors (e.g. engineering, computer science) and in fact, those folks do very well also.

What about the natural sciences? Here the story is a bit murkier: some of the natural science majors go very light on the quantitative skills. If you are a neuroscience major, but don’t have a good understanding of calculus, differential equations and perhaps linear algebra then at some level, you’re in the same boat as the political science major…