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Most psychologists need a license to practice psychology. Typically, psychologists need a doctoral degree in psychology, although a master's degree is sufficient in some situations. Licensing and regulations can vary by country and profession.

Psychologists can work in applied or academic settings. Academic psychology is focused around higher education. Academic psychologists are able to educate students as well as conduct research, with graduate level research being an important part of academic psychology. Academic positions can be tenured or non-tenured, with tenured positions being highly desirable. Applied psychology includes practitioners and professionals and focuses on solving problems in human and animal behavior. Clinical psychology and counseling psychology are two fields of applied psychology that focus on therapeutic contexts. Other applied fields such as industrial and organizational psychology, forensic psychology, and others, aim to solve problems in business, government, industry, and similar fields.

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