Why Diversity Matters in Economics
- Dilasha
- 6 days ago
- 4 min read
This piece has been developed by Dilasha, a Year 12 student from Dartford. During a work experience placement with I-LEAD: Centre for Innovation, Leadership, Education and Development at King's Business School, Dilasha explored the Royal Economic Society's Diversity and Inclusion Programme and Discover Economics programme. This blog reflects her insights and learning from that experience.
Economics is about understanding how people, businesses and governments make decisions, and how those decisions affect individuals, communities and society as a whole. Because economists help shape policies that can influence millions of people, it is important that the profession reflects the diversity of the society it serves.
While progress has been made, some groups remain underrepresented in economics education and careers, including women, people from lower socio-economic backgrounds and some ethnic minority groups. Research has shown that students from more advantaged backgrounds are more likely to study economics at highly selective universities, while women and some ethnic minority groups continue to face barriers at different stages of the pipeline into the profession. As economics seeks solutions to major challenges such as inequality, productivity and economic growth, bringing together a wider range of perspectives has never been more important.
Initiatives such as Discover Economics aim to broaden participation in the subject by helping young people understand what economics is, where it can lead, and why their voices matter.
Women in Economics
Women remain underrepresented in economics, and this begins early in education. Girls are significantly less likely to choose A-Level Economics than boys. Recent research found that around one in six boys choose A-Level Economics, compared with only one in seventeen girls. Research suggests that some girls perceive economics as a male-dominated subject and may not see themselves reflected in those who study it.
Access to the subject can also be unequal. Economics is only offered in around half of state schools, meaning many students never have the opportunity to consider studying it. This particularly affects students from disadvantaged backgrounds and can further reduce participation among girls.
The gender gap continues at university and beyond. Less than one-third of economics undergraduates are women, while women remain underrepresented in senior academic positions such as professorships. Although representation has improved at junior and mid-career levels, women are still less visible in many senior leadership roles across academia, business and public policy.
Despite these challenges, there are encouraging signs. More organisations are recognising the value of diverse teams and the benefits that different perspectives bring to decision-making. Economics graduates also continue to enjoy strong career prospects across a wide range of industries.
Ethnic Diversity in Economics
Representation challenges in economics extend beyond gender. Ethnic diversity within the discipline also remains an important issue.
Research from the Royal Economic Society highlights that economics attracts students from a wide range of ethnic backgrounds. However, some groups continue to face barriers during their educational journey. Data shows that Black students account for around 8.4% of economics undergraduates, while White students account for around 59.9%. Asian students make up around 23.4% of economics undergraduates.
Although participation has increased over time, evidence suggests that Black students are more likely than some other groups to face challenges such as lower degree outcomes and higher rates of leaving university before completing their course. Researchers have highlighted these issues as important areas where further support and intervention may be needed.
Understanding the "Leaky Pipeline"
Economists often use the term leaky pipeline to describe the way people enter economics at different stages but do not always continue through to university, professional careers or senior leadership positions.
For example, some students who study Economics at school decide not to continue with the subject at university. Others may leave the profession later in their careers. These "leaks" can occur for many reasons, including access barriers, stereotypes, lack of role models, workplace culture or competing responsibilities outside work.
The idea can also help explain why women and some ethnic minority groups are underrepresented in senior positions. Nobel Prize-winning economist Claudia Goldin has explored how career progression can be affected by workplace structures and caring responsibilities, particularly for women. These factors can make it more difficult for some individuals to progress into the most senior roles.
Understanding where these leaks occur is important because it helps organisations identify where support is needed and how opportunities can be made more accessible.
Why Diversity Benefits Economics
So why does diversity matter?
Economists play an important role in shaping public policy, advising governments and helping businesses make decisions. If decision-makers share similar backgrounds and experiences, important perspectives may be overlooked.
A more diverse profession brings together people with different experiences, viewpoints and ideas. This can lead to stronger debate, better problem-solving and more informed decision-making. It can also help ensure that economic policies consider the needs of a wider range of people.
The concept of groupthink highlights the risks of having too little diversity of thought. When groups consist of people with very similar experiences, they may be less likely to challenge assumptions or consider alternative viewpoints. Diverse teams can help reduce this risk by bringing different perspectives to discussions.
Research has also found that economists from different backgrounds can sometimes hold different views on policy issues. For example, surveys have shown differences between male and female economists on topics such as inequality and government redistribution, demonstrating the value of having a range of perspectives represented within the profession.
Conclusion
Increasing diversity in economics is not only about fairness, but also about ensuring that the profession benefits from a wider range of experiences, ideas and perspectives. Economists help shape decisions and policies that affect millions of people, so it is important that the field reflects the society it serves.
Initiatives such as Discover Economics, alongside the Royal Economic Society's wider Diversity and Inclusion Programme, are working to challenge stereotypes, improve access and inspire the next generation of economists from all backgrounds. By widening participation and encouraging more young people to see economics as a subject for them, the profession can become more representative, inclusive and better equipped to tackle the challenges of the future.
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