If my son wants to work in finance and plans business school a few years after undergrad, how important is a college with a business/finance major versus a top tier school where he would major in Econ?

[DadOfJerseyGirl]

@neela1

I thought large firms like Blackrock hire out of undergrad

Yes, and not just large firms. Even mid sized money managers hire right out of college. It always helps to have a new talent pipeline in place. Especially bright young talent that you can “mold”.

[hebegebe]

I stand corrected. I need to check with my D on why she and several of her friends chose the IB route over other options.

[neela1]

Because it pays better :-).
The traditional buyside ramps up slower.
Eventually if you made partner or something like that, the money is very respectable – perhaps not as good as IB, but you are putting mostly 50 hour weeks. Also, you don’t need IB to go into PE these days. They are hiring directly off campus. But the hours are equally bad :-).
A trading seat in a bank can pay well, better than the slower rise in traditional buyside, is not quant as is traditionally understood, but they still like STEMy kids.
IB is a sales role. Trading roles are not sales roles. So you need to go where you fit better.

I think a more important reason people go to IB is because they give themselves time to pick a buy side place to go to, rather than doing it right out of undergrad. They don’t know which buyside places are good. Two years at an IB makes them more informed. Along the way they go through dating process, interviewing with everyone. Unless a name is strong enough – say KKR or Apollo, that people feel comfortable joining them directly.

[DadSays]

I’m not sure I’d agree with this entirely. The Penn econ major is a more theoretical path and there are students that prefer this. It doesn’t really allow for a senior capstone in private equity like Wharton does, so it’s a different degree. I do agree that recruiting is much more robust and well-structured for Wharton students vs. CAS.

I also agree that if the OP’s son majors in finance at a business school there will be little to be gained by getting an MBA (at least from an education standpoint). Wharton actually tells the undergrads that they do not need MBAs if they’ve gone through the undergrad curriculum.

[neela1]

Makes sense that the econ degree is more theoretical. I am just relaying what people told me about doing econ at a place where there is a business school. Also agree that some kids choose econ over business. But there is a credible signalling problem. Of course you could have a wonderful thesis etc.