Does Higher Education Imply a Longer Unemployment Duration in the US? (Summer 2017)

I show that a person with an advanced degree, such as a Master’s or Doctorate degree, tends to experience longer unemployment durations in the United States, compared to high-school or college graduates. It is because highly-educated populations tend to have a higher reservation wage, the lowest wage rate at which they’re willing to take the offer, and companies with a high level of wage or salary are selective in their hiring decision.