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The wage effects of not-for-profit and for-profit certifications: Better data, somewhat different results

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  • Lang, Kevin
  • Weinstein, Russell

Abstract

Using the Beginning Post-Secondary Student Survey and Transcript Data, we find no statistically significant differential return to Certificates or Associate's degrees between for-profits and not-for-profits. Point estimates suggest a slightly lower return to a for-profit Certificate and a slightly higher return to a for-profit Associate's degree, largely because more students at not-for-profits earn a BA, making them less likely to have only an Associate's degree. There is considerable variation in the return to Certificates/degrees across majors, including many with negligible or negative returns. Differences across fields are large relative to differences across institution types.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 24 (2013)
Issue (Month): C ()
Pages: 230-243

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Handle: RePEc:eee:labeco:v:24:y:2013:i:c:p:230-243

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Web page: http://www.elsevier.com/locate/labeco

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Keywords: Returns to schooling; Higher education; For-profit education;

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References

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  1. Chung, Anna, 2008. "The Effects of For-Profit College Training on Earnings," MPRA Paper 18972, University Library of Munich, Germany, revised May 2009.
  2. David J. Deming & Claudia Goldin & Lawrence F. Katz, 2012. "The For-Profit Postsecondary School Sector: Nimble Critters or Agile Predators?," Journal of Economic Perspectives, American Economic Association, vol. 26(1), pages 139-64, Winter.
  3. Kevin Lang & Russell Weinstein, 2012. "Evaluating Student Outcomes at For-Profit Colleges," NBER Working Papers 18201, National Bureau of Economic Research, Inc.
  4. Mark McClellan & Douglas Staiger, 1999. "Comparing Hospital Quality at For-Profit and Not-for-Profit Hospitals," NBER Working Papers 7324, National Bureau of Economic Research, Inc.
  5. Hotz, V. Joseph & Crump, Richard K. & Mitnik, Oscar A. & Imbens, Guido, 2009. "Dealing with Limited Overlap in Estimation of Average Treatment Effects," Scholarly Articles 3007645, Harvard University Department of Economics.
  6. Edward L. Glaeser & Andrei Shleifer, 1998. "Not-For-Profit Entrepreneurs," Harvard Institute of Economic Research Working Papers 1852, Harvard - Institute of Economic Research.
  7. 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.
  8. Joseph G. Altonji & Todd E. Elder & Christopher R. Taber, 2000. "Selection on Observed and Unobserved Variables: Assessing the Effectiveness of Catholic Schools," NBER Working Papers 7831, National Bureau of Economic Research, Inc.
  9. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
  10. Tomas Philipson, 2000. "Asymmetric Information and the Not-for-Profit Sector Does Its Output Sell a a Premium?," NBER Chapters, in: The Changing Hospital Industry: Comparing For-Profit and Not-for-Profit Institutions, pages 325-356 National Bureau of Economic Research, Inc.
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Cited by:
  1. Cory Koedel & Rajeev Darolia & Paco Martorell & Katie Wilson & Francisco Perez-Arce, 2014. "Do Employers Prefer Workers Who Attend For-Profit Colleges? Evidence from a Field Experiment," Working Papers 141, Department of Economics, University of Missouri.

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