Why are tech companies hiring economists?

As technology platforms have created new markets and new ways of acquiring information, economists have come to play an increasingly central role in tech companies – tackling problems such as platform design, strategy, pricing, and policy.

What does an economist do and why is their job important?

They conduct research, collect and analyze data, monitor economic trends, and develop forecasts on a wide variety of issues, including energy costs, inflation, interest rates, exchange rates, business cycles, taxes, and employment levels, among others. Some economists also perform economic analysis for the media.

Why is Amazon hiring economists?

Economists at Amazon are solving some of the most challenging applied economics questions in the tech sector. Amazon economists apply the frontier of economic thinking to market design, pricing, forecasting, program evaluation, online advertising and other areas.

What technology do economists use?

Three of the most effective tools that economists use are the scientific method, graphs, and economic models.

Why is the study of economics important to you and your community?

Economics is the study of how societies use scarce resources to produce valuable commodities and distribute them among different people. Indeed, economics is an important subject because of the fact of scarcity and the desire for efficiency.

What do international economists do?

International Economists study international financial markets, exchange rates, and the effects of various trade policies such as tariffs. Labor Economists study the supply and demand for labor and the determination of wages.

How do economists define technology?

Technology, for economists, is anything that helps us produce things faster, better or cheaper. In this sense, processes like assembly line production or creating medical vaccines are considered technologies. Even social or political things like language, money, banking, and democracy are considered technologies.

How does technology impact the economy?

In economics, it is widely accepted that technology is the key driver of economic growth of countries, regions and cities. Technological progress allows for the more efficient production of more and better goods and services, which is what prosperity depends on.

What do technology companies do?

Broadly speaking, companies in the technology sector engage in the research, development, and manufacture of technologically based goods and services. They create software, and design and manufacture computers, mobile devices, and home appliances.

Is there a growing role for economists in the tech sector?

We’ve had many conversations like this, as economists have begun to play a growing role in the tech sector, and as companies have sought guidance on how to bring economists into their companies. For example, Amazon has quietly hired more than 150 PhD economists.

How can economists use data to value data?

Economic models can be used to value data, including its impact on competitive strategy. Beyond questions of how data can be used to improve platform design, economists might also contribute to the question of how data can be used to shed light on the world. For example, tech data can inform policy and complement standard government data.

Which companies have large teams of PhD economists?

Companies ranging from Google, Facebook, and Microsoft to Airbnb and Uber now all have large teams of PhD economists. First, the field of economics has spent decades developing a toolkit aimed at investigating empirical relationships, focusing on…

Why is causal inference important in the tech sector?

Of course, causal inference is important in all sectors, but the tech sector — where data abounds and experimentation is feasible — has been a leader in trying to complement intuition with data.