College and the Economy: The Relationship Between College Acceptance Rates and Economic Cycles
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2009
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Haverford College. Department of Economics
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eng
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Open Access
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Abstract
Higher education has over time, become increasingly important to success in the job market. Not only are employers looking for more ways to differentiate between applicants, but jobs are becoming more technically difficult and require advanced knowledge not attainable in high school. With the recent economic recession and credit crisis, students and colleges alike are realizing that the economy has a very real effect on the number and type of students that will ultimately gain admission. This paper will address the effect of economic cycles on college acceptance rates at the top 50 national universities and top 50 liberal arts colleges as ranked by “U.S. News and World Report.” The results indicate that colleges tend to increase their acceptance rates when the economy is in an expansion and decrease them during a recession.