Technical and "junior" colleges offering full-time degree programs that may be completed in two years or less are a rapidly growing segment of the U.S. economy. What are some likely impacts on aggregate flows into and out of employment status?

What will be an ideal response?

For workers who lose (or leave) a job and opt for technical college, the status change is from "employed" to "not in the labor force," rather than to "unemployed." Workers who go to technical college before beginning to search for their first job are likely to transition from "not in the labor force" to "employed," with no interval of "unemployed." Thus, flows between "employed" and "not in the labor force" are enlarged, relative to flows from either status into "unemployed." As an alternative to unemployment, technical colleges increase the flow from "unemployed" to "not in the labor force," relative to the flow from "unemployed" to "employed."