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About the Associate Economist program.

Associate Economists

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The associate economist (AE) position at the Chicago Fed is fashioned for recent college graduates with a background in economics, math, statistics, or related fields. AEs work with economists on a variety of research projects and provide support for ongoing analysis of the U.S. and global economy and monetary policy, as well as issues related to bank regulation, the payments system and financial markets. The AE position can be viewed as an apprenticeship program that allows associate economists to develop their research skills and affords a unique opportunity to support the monetary policymaking process.


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Associate economists have two primary responsibilities:

  1. Analysis of current events
    AEs work with economists on time-critical analysis of current economic data. Such analysis includes estimation of forecasting models, gathering data for reports and presentations and evaluating market developments.
  2. Assisting with long-term academic research projects
    AEs help economists in conducting long-term academic research on a wide range of empirical and theoretical topics. This includes collecting and managing data, developing code for model estimation and writing and preparing presentations.

What do you learn by working as an AE?

  1. Economics. AEs are exposed to the frontier of economic research on an ongoing basis. This occurs through daily work, both on long-term research projects and policy-related forecasting, through attending seminars, and through taking classes at local universities, such as the University of Chicago and Northwestern University.
  2. Programming. AEs acquire a wide range of specialized and general programming skills in the course of their tenure. While Matlab and Stata are the two most commonly used tools, other languages, such as Python and Julia are also being utilized. AEs also have opportunity to learn parallel computing techniques and gain experience in working with very large data sets.
  3. Immersion in policymaking process. The key goal of the research department is to provide high-quality timely input for monetary policymaking. The AEs play an important role in attaining this goal. In the process, they learn about the modeling and empirical tools for formulating policy-relevant forecasts.
  4. Analysis of current economic data. AEs work with high-frequency data in the course of their daily work. This allows them to learn about a variety of data sources, gauge their relative usefulness in answering time-critical questions and design ways to access this information quickly and reliably.
  5. Writing for diverse audiences. AEs are tasked with working on projects with very different target audiences. Some of the analyses are very technical and specialized in nature and are geared toward academics. Other projects summarize ongoing economic trends and/or research findings and are of interest to the informed general public. And some projects are meant for a very broad audience.
  6. The lifecycle of academic research. By assisting on long-term research projects, AEs are exposed to multiple stages of academic research from formulation of the initial idea to subsequent implementation and documentation of the analysis, presentation of the results, submission of the paper for peer review, ensuing revisions, etc. Seeing how research is conducted can be a valuable experience in preparing for graduate school.

How can you apply these skills?

  1. Many AEs pursue graduate degrees in economics upon leaving their AE position. Others choose to do graduate work in statistics or data science or pursue degrees in law, business administration or public policy.
  2. Former AEs have also accepted challenging positions elsewhere in the Chicago Fed, the Federal Reserve System and in the private sector.

What is the work environment like?

  1. The economic research department conducts policy-relevant research in macroeconomics, microeconomics, financial studies and regional economic issues.
  2. The department has a collegial and intellectually stimulating environment. Members of the research department collaborate to serve the public good, challenging and supporting one another on their assumptions, thinking and conclusions.
  3. AEs represent a diverse group of recent graduates with a common interest in economics and monetary policy.
  4. AEs commonly share their expertise and actively learn from each other.

Some day-to-day activities include:

  1. Compiling, reviewing and assessing economic and financial data from journals, market sources and government reports.
  2. Performing econometric, computational and analytical research and running financial, banking, macroeconomic and forecasting models.
  3. Programming in statistical packages, such as Matlab, Stata, Python, R or SAS.
  4. Working with large-scale databases.
  5. Writing, assisting and/or delivering presentations to the Bank’s president and senior management.
photo of felix zhang sept 2016
Felix Zhang
Finance
  “Working as an associate economist at the Chicago Fed has provided me with a wonderful opportunity to pursue my research interests in economics and hone my professional skills. In the finance group, I get to work on research projects related to mortgages, household finance, student loans and bond pricing. The Fed allows me access to cutting-edge econometric and statistical software, as well as the biggest, richest data. The opportunity to take Ph.D. level courses at the University of Chicago has also been invaluable in preparing me for graduate school. Most importantly, however, I am able to work alongside brilliant economists and AEs, who serve as great mentors and colleagues and foster a dynamic work environment. I would strongly recommend the AE position to anyone interested in working at the intersection of academic research and policymaking.”

Sharada Dharmasankar
Microeconomics
  “Working as an associate economist at the Chicago Fed is fundamentally different from most jobs at other organizations, in that the goal is to prepare you for life after your time here. In the last half year as an AE for the micro team, I’ve touched a wide range of research projects, from examining the effects of mortgage foreclosures on household credit to looking at how season of birth affects later in life outcomes. In doing this work, I’ve been tasked with managing and analyzing many rich and complex proprietary datasets, which develops technical skills and is an indicator of the high levels of trust that economists put in AEs. The Fed cultivates a thoughtful work environment that encourages learning: The research department is home to many economists who are leaders in their research areas, the research team hosts many paper presentations and seminars during the work week and the AEs can take classes at local universities. All of that provides excellent preparation for graduate school.”
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Kevin Roberts
Regional Analysis
  “As an associate economist in the regional analysis ream, I've worked on projects spanning a broad range of topics, including industry agglomeration patterns, financial stability indicators, and economic activity indexes. Despite this scope, I’ve been afforded thorough involvement with advanced modeling and analysis techniques in each application. The highly collaborative work environment at the Chicago Fed provides both diversity and depth of exposure to economic topics — few positions afford such a comprehensive look at the research process, from data collection and modeling all the way through to policy implementation.

“The brilliant economists here show a genuine investment in our development as researchers — not only by helping us foster skills for future success, but by also empowering us to make immediate contributions to the Bank’s research and policy output. Though the technical skills I've developed here are certainly valuable, just as important has been gaining the confidence and experience to apply these tools in meaningful ways.”
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Dominic Anene
Financial Markets Group
  “My time working at the Chicago Fed has been both helpful and interesting. I’ve taken graduate math classes at the University of Chicago, researched important economic questions and built connections with my cohorts that will last a lifetime. As a member of the financial markets team, I have mainly supported work on derivatives or financial utilities. In addition, I have had the opportunity to work with economists on a variety of issues, such as monetary policy and lift-off at the ZLB [zero lower bound], mortgages/household finance, network theory and systemic risk and financial literacy.

“Being surrounded by high-performing people every day gives the Fed an atmosphere that has motivated me to keep pushing myself and searching for answers to difficult questions. From the AEs who are working diligently toward their goal of attaining a Ph.D. to the economists who will take you under their wing and drop tidbits of quirky yet perspicacious insight when you least expect it, there is no shortage of inspiration. The thought experiment of research coupled with the freedom to explore on your own intellectually is what I deem to be the most rewarding part of being an AE.”
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Andy Polacek
Insurance Initiative
  “Working with the Chicago Fed insurance initiative has given me an in-depth look into the regulatory and policy-making processes of the Federal Reserve. In my tenure at the Fed, I’ve assisted in the ongoing process of designating and regulating systemically important financial institutions at both the domestic and international levels. My work has been presented to the Board of Governors to inform monetary policy decisions. At the Fed, I’ve grown as a researcher, while working with some of the top economists in the field. I have developed a coding and analytical toolset that gives me highly marketable skills. And I’ve been offered opportunities for advancement within the Federal Reserve System. If you want to work in a collegial environment with other inquisitive researchers, tackling the most important economic questions where your answers can have a real impact on economic policy, the Fed is the place for you.”
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David Kelley
Policy and Communications
  “Working on the policy and communications team has provided me with a variety of experiences. I’ve enjoyed interacting with senior management at the Chicago Fed and developing critical thinking and communications skills, while getting a view into the policy process. Through my work with time-series data for use in economic forecasting, I have become much more comfortable with econometric modeling and coding for data analysis.

“The environment within the research department has been fantastic. The variety of topics covered by others in the department has allowed me to be exposed to methods and results in a way I can imagine in few other places. I’ve appreciated working with more senior colleagues, who have provided direction and insight to projects while also giving me the freedom to explore my own ideas and methods.”
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Jake Weber
Macroeconomics
  “I joined the macro group at the Chicago Fed hoping to gain economic research experience and get a better idea of what I might want to focus on in graduate school. In my first year, I worked on projects with several different economists, including a cross-country investigation of asset price bubbles, an assessment of the impact of the informational content of Federal Open Market Committee (FOMC) announcements on futures prices and an exploration of demographic discrepancies in consumption following the recent financial crisis. Although most of my time is spent assisting economists with their research, I also help with policy work by generating statistical forecasts for the Bank during FOMC rounds.

“While I expected to improve my research skills through practical experience at the Fed, what I didn’t expect was the degree to which the economists and other AEs would directly contribute to my learning, and how generous they would be with their time. One former AE (now attending graduate school at Northwestern) taught me everything from regular expressions to how to debug properly in Stata, and another (now attending graduate school at Harvard) demystified log linearization for me — his notes still adorn my wall. For deeper technical questions or career advice, I’m able to turn to the economists, whom I have repeatedly found to be excellent mentors and inspiring teachers and who are genuinely interested in my professional development. This collaborative and supportive environment has enabled me to learn and succeed at the Chicago Fed and makes me particularly enthusiastic about coming to work each day.”

Our Studies

After leaving the Chicago Fed most AEs go on to graduate school. Many pursue a Ph.D. in economics, such as Jon Davis (University of Chicago) and Christine Ostrowski (Princeton). Wenfei Du is a student at Stanford’s graduate program in statistics.


Wenfei Du
Regional Analysis
2012-14
  “As an associate economist in the regional group at the Federal Reserve Bank of Chicago, I was given the opportunity to collaborate directly with economists in formulating theoretical models and to handle empirical work. This included work on several projects on the automotive industry, aimed at determining factors behind supplier location choice and analyzing fuel efficiency improvements over time. Another project looked at city wage growth decomposition with city-time factors. My involvement in the research process on each of these projects has provided me with an excellent foundation for my graduate study in statistics, greatly improving my ability to think critically about problems that arise as well as to communicate ideas. In addition, working with economic data has enhanced my understanding of the applications of statistical methodology, which has impacted my current research agenda in applied econometrics.“
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Christine Ostrowski, Macroeconomics
2011-14
  “Many students have trouble with the abrupt switch from coursework to independent research that occurs in the third year of graduate school. The Chicago Fed was the perfect place for me to get a head start on this transition. When I first arrived, I helped economists with their own work, asking lots of questions and learning coding skills. I attended seminars several times a week, joined a reading group with other AEs and took classes at University of Chicago (the Fed covered tuition). I then began co-authoring with economists on research and started learning how to direct my own research. I presented co-authored papers at the Fed lunch seminar and at other conferences, including the SED meetings in Seoul, South Korea. I worked closely enough with economists to get multiple letters of recommendation, which allowed me to apply to schools I never otherwise could have considered. Having been undecided on which direction to take in economics when I first came to the Fed, I strongly recommend the AE program for anyone who is interested in economic research but wants to learn more before applying to graduate school.”

Jon Davis, Microeconomics
2009-12
  “I was an associate economist (AE) in the Chicago Fed’s microeconomic group from June 2009 until I started graduate school at the University of Chicago’s Harris School of Public Policy in September 2012. The research experience I gained while working at the Fed was an invaluable component of my academic training. As a research assistant, I worked on papers that went on to be published in top economic journals, like the American Economic Review and the Journal of Political Economy. I also co-authored several articles which appeared in peer-reviewed academic and Chicago Fed publications. Beyond just helping me master a variety of statistical tools that are crucial for applied research, the experience of working closely with economists taught me how to think about and organize an academic research project — skills that helped me finish my Ph.D. in four years (the median is 6 years). Perhaps most importantly, working as an AE was a lot of fun and fostered many great relationships. Many of my colleagues and mentors from my time as an AE are now my friends and co-authors. After completing my Ph.D., I became a post-doc in the University of Chicago economics department. I will be on the academic job market in 2017-18.”

Our Careers

Some AEs become professors in the fields of economics or finance. Andrew Goodman-Bacon is an assistant professor of economics at Vanderbilt. Sometimes AEs pursue a career within the Federal Reserve System. Scott Brave is a policy economist in the Regional Analysis group at the Chicago Fed’s research department.


headshot of andrew bacon sept 2016
Andrew Goodman-Bacon
Assistant Professor, Economics
Vanderbilt University
  “My time at the Chicago Fed played a crucial role in my preparation for graduate school as well as my research career. I came to the Fed with plenty of ideas, but limited research experience. In my two years as an AE, I gained many practical skills from my senior colleagues and fellow AEs. I pored over Stata code, took (funded) courses in other programming languages, learned about new empirical methods, used unique restricted data and gained valuable experience producing and conveying empirical economic research. The experience greatly strengthened my graduate school application, and I rely on the substantive lessons I learned there almost every day as an assistant professor of economics at Vanderbilt University. For example, Leslie McGranahan and I wrote a short paper estimating the effects of the Earned Income Tax Credit (EITC) on expenditures. Almost ten years later, I still referee papers on the EITC, and my understanding of its structure and effects inform my current research on the history of social and health policy in the U.S. I came to the Fed excited about economic research and ready to learn and left with a host of new skills and a strong start to my academic career in economics.
photo scott brave careers page
Scott Brave
Policy Economist, Regional Analysis
Chicago Fed
  “Working as an associate economist at the Chicago Fed was both one of the most exciting and challenging positions of my young career. It is one thing to sit in a classroom for four years learning about economic theories, but a completely different experience to see those theories then debated and put into practice when it comes to setting monetary policy. The skills that I attained, the connections that I made, and the insights that I gained put my career on the path that it remains on to this day. For someone interested in pursuing graduate studies in economics (or statistics and many other related social sciences for that matter), there is no better proving ground before you take that next step.”

Recent Chicago Fed research publications co-authored by AEs include the following. 
* Indicates associate economist.

Finance

Gene Amromin, Benjamin J. Keys and Michael J. Murto*, 2016, "Mortgage Refinancing during the Great Recession: The Role of Credit Scores," Chicago Fed Letter, No. 355.

Anna Neumann*, 2015, "Fostering Payments Innovations," Chicago Fed Letter, No. 332.

Nisreen H. Darwish*, 2014, "Keeping Banking Competitive: Evaluating Proposed Bank Mergers and Acquisitions," Chicago Fed Letter, No. 322, May.

Ben Chabot and Gabe Herman*, 2013, "A History of Large-Scale Asset Purchases before the Federal Reserve," Economic Perspectives, Vol. 37, Fourth Quarter.

Hesna Genay and Mike Mei*, 2013, "The Cyprus Crisis Through the Lens of Bank Investors," Chicago Fed Letter, No. 315, October.

Insurance Initiative

Florentine M. Eloundou Nekoul* and Alejandro H. Drexler, 2016, "Do Insurers in Catastrophe-Prone Regions Buy Enough Reinsurance?," Chicago Fed Letter, No. 360.

Kyal Berends* and Thomas King, 2015, "Derivatives and Collateral at U.S. Life Insurers," Economic Perspectives, Vol. 39, First Quarter.

Andy Polacek*, 2015, "How Do Property and Casualty Insurers Manage Risk? The Role of Reinsurance," Chicago Fed Letter, No. 334.

Kyal Berends*, Robert McMenamin, Anna Paulson and Richard J. Rosen, 2014, "Understanding the Relationship Between Life Insurers and the Federal Home Loan Banks," Chicago Fed Letter, No. 318a, January.

Robert McMenamin*, Anna Paulson, Thanases Plestis* and Richard J. Rosen, 2013, "What Do U.S. Life Insurers Invest in?," Chicago Fed Letter, No. 309, April.

Kyal Berends*, Robert McMenamin*, Thanases Plestis* and Richard J. Rosen, 2013, "The Sensitivity of Life Insurance Firms to Interest Rate Changes," Economic Perspectives, Vol. 37, Second Quarter.

Financial Markets Group

Zachary Duey* and Robert Steigerwald, 2015, "2015 Conference on Central Counterparty Risk Management: Resolution," Chicago Fed Letter, No. 348.

Rebecca Lewis* and John W. McPartland 2015, "A New Approach to Stock Market Execution," Chicago Fed Letter, No. 343.

Macroeconomics

Rebecca Friedman* and Mark L. J. Wright, 2016, "How Much Debt Does the U.S. Government Owe?," Chicago Fed Letter, No. 353.

Justin Bloesch* and François Gourio, 2015, "The Effect of Winter Weather on U.S. Economic Activity," Economic Perspectives, Vol. 39, First Quarter.

Robert Barsky and Theodore Bogusz*, 2014, "Interest Rates and Asset Prices: A Primer," Economic Perspectives, Vol. 38, Fourth Quarter.

François Gourio, Todd Messer* and Michael Siemer. 2014, "What Is the Economic Impact of the Slowdown in New Business Formation?," Chicago Fed Letter, No. 326, September.

Marco Bassetto, Todd Messer and Christine Ostrowski*, 2013, "Forecasting Inflation and the Great Recession," Economic Perspectives, Vol. 37, Third Quarter.

Jake Fabina* and Mark L. J. Wright, 2013, "Where Has All the Productivity Growth Gone?," Chicago Fed Letter, No. 306, January.

Microeconomics

Daniel Aaronson, Scott A. Brave and Ross Cole*, 2016, "Using Private Sector 'Big Data' as an Economic Indicator: The Case of Construction Spending," Chicago Fed Letter, No. 366.

Daniel Aaronson, Scott A. Brave and David Kelley*, 2016, "Is There Still Slack in the Labor Market?," Chicago Fed Letter, No. 359.

Daniel Aaronson, Luojia Hu, Arian Seifoddini* and Daniel G. Sullivan, 2015, "Changing Labor Force Composition and the Natural Rate of Unemployment," Chicago Fed Letter, No. 338.

Daniel Aaronson, Luojia Hu, Arian Seifoddini* and Daniel G. Sullivan, 2014, "Declining Labor Force Participation and Its Implications for Unemployment and Employment Growth," Economic Perspectives, Vol. 38, Fourth Quarter.

Daniel Aaronson and Andrew Jordan*, 2014, "Understanding the Relationship between Real Wage Growth and Labor Market Conditions," Chicago Fed Letter, No. 327, October.

Eric French, Taylor Kelley* and An Qi*, 2013, "Expected Income Growth and the Great Recession," Economic Perspectives, Vol. 37, First Quarter.

Regional Analysis

William A. Strauss and Rebecca Friedman*, 2016, "Economy to Keep Rolling Along in 2016 and Accelerate Slightly in 2017," Chicago Fed Letter, No. 364.

William A. Strauss, Rebecca Friedman*, 2016, "Economic Outlook Symposium: Summary of 2015 Results and 2016 Forecasts," Chicago Fed Letter, No. 350.

William A. Strauss and Jacob Berman*, 2015, "Economy to Roll Along at a Solid Pace in 2015 and Accelerate Slightly in 2016," Chicago Fed Letter, No. 340.

William A. Strauss and Jacob Berman*, 2015, "Economic Outlook Symposium: Summary of 2014 Results and 2015 Forecasts," Chicago Fed Letter, No. 333.

Scott A. Brave, Thomas Walstrum and Jacob Berman*, 2015, "The Chicago Fed Survey of Business Conditions: Quantifying the Seventh District’s Beige Book Report," Economic Perspectives, Vol. 39, Third Quarter.

Jacob Berman* and Leslie McGranahan, 2014, "Measuring Fiscal Impetus: The Great Recession in Historical Context," Economic Perspectives, Vol. 38, Third Quarter.

Jacob Berman* and William A. Strauss, 2014, "Economic Outlook Symposium: Summary of 2013 Results and 2014 Forecasts," Chicago Fed Letter, No. 319, February.

Rick Mattoon and Norman Wang*, 2014, "Industry Clusters and Economic Development in the Seventh District’s Largest Cities," Economic Perspectives, Vol. 38, Second Quarter.

Scott A. Brave and Thomas Walstrum*, 2014 "Using the Federal Reserve’s Beige Book to Track Economic Activity," Chicago Fed Letter, No. 328, November.

Jacob Berman* and William A. Strauss, 2014, "Economy to Move Down the Road at a Solid Pace in 2014 and Accelerate Slightly in 2015," Chicago Fed Letter, No. 324b, July.

Jason Faberman and Taft Foster*, 2013, "Unemployment among Recent Veterans during the Great Recession," Economic Perspectives, Vol. 37, January.

William A. Strauss and Norman Wang*, 2013, "Economy to Cruise at Speed Limit in 2013 and Accelerate Slightly in 2014," Chicago Fed Letter, No. 313a, August.

William A. Strauss and Norman Wang*, 2013, "Economic Outlook Symposium: Summary of 2012 Results and 2013 Forecasts," Chicago Fed Letter, No. 307, February.

Working Papers

Gene Amromin and Caitlin Kearns*, 2014, "Access to Refinancing and Mortgage Interest Rates: HARPing on the Importance of Competition," working paper, No. 2014-25, December.

Stefania D’Amico, Roger Fan* and Yuriy Kitsul, 2013, "The Scarcity Value of Treasury Collateral: Repo Market Effects of Security-Specific Supply and Demand Factors," working paper, No. 2013-22,November.

Robert Barsky and Theodore Bogusz*, 2013, "Bubbles and Leverage: A Simple and Unified Approach," working paper, No. 2013-21, November.

Marco Bassetto and Todd Messer*, 2013, "Fiscal Consequences of Paying Interest on Reserves," working paper, No. 2013-04.

* Indicates associate economist.

1. What are the ideal qualifications?
  • A bachelor's degree or more, with an emphasis on economics, mathematics and statistics.
  • Familiarity with programming languages and statistical software packages, such as Matlab, Stata, Python, R, C++, Fortran, SAS, GAUSS and others.
  • Prior research or classroom experience analyzing data.
  • Ability to communicate clearly and work independently.
2. How is the research department organized?
  • The department consists of four teams: finance, macroeconomics, microeconomics and regional analysis. Each of these teams has a distinct focus and a broad research agenda. Economists collaborate widely across teams, both on policy and research. Read more about the economists and their research fields.
  • AEs are assigned to a particular team, depending on existing needs and qualifications. An AE typically provides primary research support for one or two economists and is engaged in a number of policy analyses that may include economists from different teams.
3. What are the typical career paths pursued by AEs?
  • Many AEs pursue graduate degrees in economics upon leaving their AE position. Others choose to do graduate work in statistics or data science or pursue degrees in law, business administration, or public policy. Recent AEs have attended top-rated graduate programs at universities such as the University of Chicago, Harvard, Yale, the Massachusetts Institute of Technology, Northwestern, Stanford, the University of Pennsylvania and the University of Michigan. In recent years, two Chicago Fed AEs have been awarded a National Science Foundation Graduate Fellowship.
  • Former AEs have also accepted challenging positions elsewhere in the Chicago Fed, the Federal Reserve System, in the private sector and in the U.S. government. You can see some examples in Success Stories.
4. What opportunities are there for continuous learning?
  • During their tenure at the Chicago Fed, associate economists have numerous opportunities to take outside courses, attend research seminars and participate in reading groups where they present and discuss research studies and ideas.
  • In addition, AEs take part in specialized onsite and offsite courses (recent examples include a Matlab parallel processing course and software carpentry workshops).
5. How flexible are work hours?
  • AEs are expected to be present during regular business hours.
  • However, regular schedules can be modified to accommodate class attendance.
6. What benefits does the Chicago Fed offer?
  • Tuition reimbursement
  • Health, dental and vision insurance
  • Commuting and health club benefits
  • 401(k) savings plan with employer matching
7. I have a master’s degree. Should I apply?
  • Absolutely. Having a master’s degree enables incoming AEs to build upon a strong foundation and quickly ramp up their contributions to the research department.
  • Candidates with a master’s degree are able to further develop their skills for future doctoral studies or to prepare for a transition to other career tracks.
8. Are there other opportunities for undergraduates?
  • The Chicago Fed offers a summer internship program.
  • The research department program emphasizes advanced assignments — with opportunities for summer interns to enhance their skills through critical financial analysis, research and writing and formal presentations — making it ideal for students, especially rising seniors, interested in applying for the AE position.
  • More information is available at the summer internship page.
9. What are the legal requirements for this position?

Bank policy specifies that candidates must be:
  • U.S. citizens
  • U.S. nationals or
  • U.S. permanent residents who intend to apply for naturalization within six months of being eligible to do so.
10. When and how do I apply?
  • Recruitment of associate economists begins in the fall and lasts throughout the winter months. We review applications on a rolling basis and candidates are strongly encouraged to apply early.
  • To apply for the position, click on Apply Now to begin your application.