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The effects of the great recession on college majors

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  • Ersoy, Fulya Y.

Abstract

How did the Great Recession affect the college degree fields? Utilizing the geographic variation in the severity of the recession in the US, I answer this question using the differences-in-differences and synthetic controls approaches. To explore these effects systematically, I categorize fields based on their sensitivity to the recession. The results show that there was a shift from recession-sensitive majors towards recession-resistant majors. The effects were immediate and larger for more local institutions. These findings suggest that students’ expectations about future labor market outcomes are affected by shocks to the current local labor market conditions.

Suggested Citation

  • Ersoy, Fulya Y., 2020. "The effects of the great recession on college majors," Economics of Education Review, Elsevier, vol. 77(C).
    • Handle: RePEc:eee:ecoedu:v:77:y:2020:i:c:s0272775719305795
    DOI: 10.1016/j.econedurev.2020.102018
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    References listed on IDEAS

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    Cited by:

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    3. Minaya, Veronica & Moore, Brendan & Scott-Clayton, Judith, 2023. "The effect of job displacement on public college enrollment: Evidence from Ohio," Economics of Education Review, Elsevier, vol. 92(C).
    4. Davis, James C. & Diethorn, Holden A. & Marschke, Gerald R. & Wang, Andrew J., 2026. "STEM employment resiliency during recessions: Evidence from the COVID-19 Pandemic," Research Policy, Elsevier, vol. 55(1).
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    6. Christa Deneault, 2025. "Local Labor Markets and Selection into the Teaching Profession," Working Papers 2522, Federal Reserve Bank of Dallas.
    7. Marisa Cameron & Bryan C. McCannon & Katherine Starr, 2023. "AACSB accreditation and student demand," Southern Economic Journal, John Wiley & Sons, vol. 90(2), pages 317-340, October.
    8. Etienne Dagorn & Elena Claudia Meroni & Léonard Moulin, 2025. "Shifting preferences: COVID-19 and higher education application," Post-Print hal-05198490, HAL.

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    Keywords

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    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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