Summary: Insulating effects of education.
In a paper, The Effects of Recessions Across Demographic Groups, St. Louis FED economist Howard J. Wall concludes that the higher the educational attainment, the less likely the person will have lost their job during a recession. The paper is here.
There's no doubt in my mind that education is a compensating wage differential. I was wondering how many educated worked have also signed long-term contracts that protect employees from job loss and real buying power. In addition, sales jobs seem to be booming. I think some industries will suffer from the recession after inventories have been depleted and contracts have expired.
The message is clear, however, education is the key to success.
About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an EconEdLink.org author blogging at Mikeroeconomics.
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