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Estimates of Earnings Returns by Field of Study for For-Profit Schools and Community Colleges

Author

Listed:
  • Jepsen, Christopher

    (University College Dublin)

  • Mueser, Peter R.

    (University of Missouri, Columbia)

  • Troske, Kenneth

    (University of Kentucky)

  • Jeon, Kyung-Seong

    (University of Missouri-Columbia)

Abstract

This paper estimates labor-market returns for students pursuing certificates or associate's degrees in eight broad fields of study at community colleges and for-profit institutions. The data contain 400,000 students beginning their studies between 2005 and 2012 in one state. We estimate two-step models to address recent econometric concerns with two-way fixed effects models. Our analyses show important differences in return by field, with similar patterns for for-profit schools and community colleges. Apart from those studying in health fields, returns are generally greater for those attending for-profit schools than those attending community colleges. Higher estimated overall returns for for-profit schools are not primarily due to differences in areas of study.

Suggested Citation

  • Jepsen, Christopher & Mueser, Peter R. & Troske, Kenneth & Jeon, Kyung-Seong, 2023. "Estimates of Earnings Returns by Field of Study for For-Profit Schools and Community Colleges," IZA Discussion Papers 16568, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16568
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    References listed on IDEAS

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    1. Rajeev Darolia & Cory Koedel & Paco Martorell & Katie Wilson & Francisco Perez‐Arce, 2015. "Do Employers Prefer Workers Who Attend For‐Profit Colleges? Evidence from a Field Experiment," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 34(4), pages 881-903, September.
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    More about this item

    Keywords

    postsecondary education; labor-market returns; for-profit schools;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education

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