Stable sectors may benefit from recessions by recruiting more talented workers

Between the end of 2007 and the middle of 2009, Britain and the United States experienced the worst recession for more than half a century. During that time entry into high-paying and high-risk private sector jobs declined substantially while many graduates tried to secure employment in less volatile sectors, such as academia. But how may this affect the economy in the long run? Michael Boehm and Martin Watzinger measure significantly higher research productivity for academics that started their career in recession compared to academics that started out in a boom. This suggests that less volatile sectors benefit from recessions in terms of the talent they can attract.