Once you get past an experience level, education doesn't matter anymore. I'd say after working in the field for 10 years we don't even look at degree, because if you need a degree to boost your reputation for a senior / staff level position, you aren't good enough to stand on your own feet.
Sometimes it is just bad luck because the company they worked for aren't doing well, and some I know that are out of work had such a bad luck that the entire industry collapsed (i.e. semiconductor equipment vendors like Applied Material laid off 18k out of their 20k staff during the dot com bust). Sometimes their skills are way too specialized to migrate to another field as experts demanding expert salary, so they are willing to take a chance to start from entry level, hoping to get in the door and prove themselves and climb up quickly.
Government jobs advance almost entirely based on the degree.
