Recruiting talented researchers is easier in recessions and universities benefit from increased productivity.

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. Evidence suggests that during that time entry into high-paying and high-risk private sector jobs declined substantially while many talented graduates tried to stay on at university. Using data of economics PhD graduates, Michael Boehm and Martin Watzinger find that universities benefit from recessions because in downturns they can recruit more productive researchers than in booms.