Uganda, and surged by three million—18 percent—in the United States. Why were consumers willing to spend on

education during lean times? Both individuals and countries view higher education as the way to prosperity. Many

feel that increased earnings are a significant benefit of attending college.

U.S. Bureau of Labor Statistics data from May 2012 supports this view, as Figure 6.6 shows. They show a positive

correlation between earnings and education. The data also indicate that unemployment rates fall with higher levels

of education and training.

Why spend the money to go to college during recession? Because if you are unemployed (or underemployed,

working fewer hours than you would like), the opportunity cost of your time is low. If you’re unemployed, you don’t

have to give up work hours and income by going to college.

Access for free at openstax.org
6.3 • Behavioral Economics: An Alternative Framework for Consumer Choice 153
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