More evidence that markets work: law schools

The market for lawyers is being adversely impacted by three forces: financial regulations have dried up the volume of financial deals, more legal work is being outsourced overseas, and corporations insist on more bang per buck of legal fees.  We are now starting to see reaction on the supply side of the market -- the number of people taking the LSAT has fallen by 24% over the last two years.  My guess is that the LSAT numbers were artificially high in 2009 and 2010 as students sought out law degrees as a safe harbor from the Great Recession.  But a 24% drop is huge, no matter what spin you try.  This could be tough news for the smaller, less visible law schools.