Jaison R. Abel, Richard Deitz, and Yaqin Su:

A college education is an important investment that helps people build their skills and prepare for high-skilled jobs. Historically, those who have made this investment have received a substantial economic benefit that lasts over their lifetime. However, with the onset of the Great Recession and the sluggish labor market recovery that has ensued, there have been widespread reports of newly minted college graduates who are unsuccessful at nding jobs suited to their level of education. According to many accounts, recent graduates are finding it increasingly dificult to secure a job, and those who do nd work are o en con ned to low-wage positions. Stories of this nature raise troubling questions about whether a college degree still helps people find good jobs.

In this edition of Current Issues, we assess just how dificult the labor market
has become for recent college graduates. In doing so, we move beyond anecdotal evidence to examine more than two decades of data on the employment outcomes of recent college graduates. This approach allows us to put the experience of those entering the labor market during the latest business cycle into historical perspective.