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Crowded Colleges and College Crowd-Out: The Impact of Public Subsidies on the Two-Year College Market

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  • Stephanie Riegg Cellini
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    Abstract

    This study assesses the impact of an increase in funding for public community colleges on the market for two-year college education, considering both the effect on community college enrollments and on the number of proprietary schools in a market. I draw on a new administrative dataset of for-profit colleges in California and votes on local community college bond referenda to implement a unique regression discontinuity design. The results suggest that bond passage diverts students from the private to the public sector and causes a corresponding decline in the number of proprietary schools in the market. (JEL H75, I22, I23)

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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/pol.1.2.1
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    File URL: http://www.aeaweb.org/aej/pol/data/2008-0006_data.zip
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    Bibliographic Info

    Article provided by American Economic Association in its journal American Economic Journal: Economic Policy.

    Volume (Year): 1 (2009)
    Issue (Month): 2 (August)
    Pages: 1-30

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    Handle: RePEc:aea:aejpol:v:1:y:2009:i:2:p:1-30

    Note: DOI: 10.1257/pol.1.2.1
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    References

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    1. Martin Gaynor & William B. Vogt, 2003. "Competition Among Hospitals," NBER Working Papers 9471, National Bureau of Economic Research, Inc.
    2. Thomas J. Kane & Cecilia Elena Rouse, 1999. "The Community College: Educating Students at the Margin between College and Work," Journal of Economic Perspectives, American Economic Association, vol. 13(1), pages 63-84, Winter.
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    7. Guido Imbens & Thomas Lemieux, 2007. "Regression Discontinuity Designs: A Guide to Practice," NBER Technical Working Papers 0337, National Bureau of Economic Research, Inc.
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    Cited by:
    1. Stephanie Riegg Cellini & Latika Chaudhary, 2012. "The Labor Market Returns to a For-Profit College Education," NBER Working Papers 18343, National Bureau of Economic Research, Inc.
    2. Chung, Anna S., 2012. "Choice of for-profit college," Economics of Education Review, Elsevier, vol. 31(6), pages 1084-1101.
    3. Chung, Anna, 2008. "The Choice of For-Profit College," MPRA Paper 18971, University Library of Munich, Germany, revised Nov 2009.
    4. Cohodes, Sarah & Goodman, Joshua, 2013. "Merit Aid, College Quality and College Completion: Massachusetts' Adams Scholarship as an In-Kind Subsidy," Working Paper Series rwp13-005, Harvard University, John F. Kennedy School of Government.
    5. Cellini, Stephanie Riegg, 2012. "For-Profit Higher Education: An Assessment Of Costs And Benefits," National Tax Journal, National Tax Association, vol. 65(1), pages 153-79, March.
    6. Daphna Bassok & Maria Fitzpatrick & Susanna Loeb, 2012. "Does State Preschool Crowd-Out Private Provision? The Impact of Universal Preschool on the Childcare Sector in Oklahoma and Georgia," NBER Working Papers 18605, National Bureau of Economic Research, Inc.

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