US recessions harm take-up of liberal arts degrees

Students in 바카라사이트 US are increasingly less likely to major in a liberal arts subject or education field at university as unemployment rates rise.

That is 바카라사이트 main finding from a new study which suggests that US students choose to major in subjects that are ¡°more challenging, require more math¡± and lead to jobs with higher salaries.

, published by 바카라사이트 Institute for 바카라사이트 Study of Labor, found that each time 바카라사이트 unemployment rate increases by 1 per cent, 바카라사이트 share of men majoring in engineering fields rises by more than 0.6 per cent, while 바카라사이트 proportion choosing education or liberal arts falls by almost 0.4 per cent and more than 0.2 per cent respectively.

For women, 바카라사이트 proportion studying business rose 바카라사이트 most (0.6 per cent) as unemployment increased, with education (down 1 per cent) and literature and language (down 0.3 per cent) seeing 바카라사이트 greatest drop.

Overall, a one percentage point increase in 바카라사이트 unemployment rate leads to a 3.2 percentage point reallocation of 바카라사이트 major choices of men and a 4.1 percentage point reallocation for women, 바카라사이트 study claims.

The study was based on findings from two databases - 바카라사이트 American Community Survey and 바카라사이트 Baccalaureate and Beyond Survey ¨C and examined 바카라사이트 relationship between 바카라사이트 choices of major of people aged 20 from 1960 to 2011 and 바카라사이트 unemployment rates during this period.

¡°The recession-induced reallocation in college majors shifts 바카라사이트 distribution toward fields of study that are more challenging, require more math, and, above all, are higher paying,¡± say authors Erica Bloom, principal consultant at Edgeworth Ecomonics, Brian Cadena, assistant professor in 바카라사이트 department of economics at 바카라사이트 University of Colorado Boulder, and Benjamin Keys, assistant professor at Harris School of public policy at 바카라사이트 University of Chicago.

¡°These shifts suggest that a substantial number of college students make an earnings-maximizing response to recession conditions by choosing majors that are more insulated from recessions.¡±

They add that 바카라사이트 data suggests that many college students, and especially female college students, have ¡°sufficient ability to complete more challenging majors, such as STEM fields, yet choose not to do so in periods with stronger labor market prospects¡±.

The study also found that a three percentage point rise in unemployment at 바카라사이트 time of major choice leads to a distribution of majors that earn roughly 1.35 per cent more, on average, in 바카라사이트 long-term.

¡°The results suggest that even brief recessions can have a long-lasting impact on 바카라사이트 distribution of human capital in 바카라사이트 economy and provide new insight into how labor supply adjusts in subtle ways to temporary disruptions in labor demand,¡± 바카라사이트 authors said.

ellie.bothwell@tesglobal.com