Question

2. Since the 1990s, enrollment in graduate school as a percent of the working-age population has tended to increase during recessions. why might people become more likely to pursue graduate degrees during times when the overall economy is doing poorly?

Answer 1

Question 2

When the overall economy is doing poorly then unemployment in the economy tends to be higher.

There are fewer job opportunities.

In such scenario, the probability of getting a job would be very low for a unemployed person. In such circumstances, an unemployed person finds is more beneficial to indulge in studies to increase his or her educational credentials and human capital rather than wasting the time in fruitless pursuit of a job.

This increase in educational credentials and human capital will help the person in getting better job with higher income when economy recovers.

Thus, the prospects of getting better and highly paid job when economy will recover on back of increased education and human capital induces people to enroll in graduate schools during recessions.

Therefore,

People are more likely to pursue graduate degrees during times when the overall economy is doing poorly.