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The Economics of Online Postsecondary Education: MOOCs, Nonselective Education, and Highly Selective Education

Author

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  • Caroline M. Hoxby

Abstract

I consider economically sustainable online postsecondary education, including massive open online courses (MOOCs). The analysis suggests that MOOCs will be financially sustainable substitutes for some non-selective postsecondary education, but there are substantial risks. The analysis suggests that MOOCs will be financially sustainable substitutes for only a small share of highly selective postsecondary education (HSPE) and are likely to collapse the economic model that allows HSPE institutions to invest in advanced education and research. I outline a non-MOOC model of online education that may allow HSPE institutions to sustain their distinctive activities and to reach a larger number of students.

Suggested Citation

  • Caroline M. Hoxby, 2014. "The Economics of Online Postsecondary Education: MOOCs, Nonselective Education, and Highly Selective Education," American Economic Review, American Economic Association, vol. 104(5), pages 528-533, May.
    • Handle: RePEc:aea:aecrev:v:104:y:2014:i:5:p:528-33
    Note: DOI: 10.1257/aer.104.5.528
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    Cited by:

    1. Caroline M. Hoxby, 2018. "Online Postsecondary Education and the Higher Education Tax Benefits: An Analysis with Implications for Tax Administration," Tax Policy and the Economy, University of Chicago Press, vol. 32(1), pages 45-106.
    2. Benjamin Faber & Rosa Sanchis-Guarner & Felix Weinhardt, 2015. "ICT and Education: Evidence from Student Home Addresses," SERC Discussion Papers 0186, Centre for Economic Performance, LSE.
    3. Allen R. Sanderson & John J. Siegfried, 2015. "The Case for Paying College Athletes," Journal of Economic Perspectives, American Economic Association, vol. 29(1), pages 115-138, Winter.
    4. Emilie Dargaud & Frédéric Jouneau-Sion, 2019. "The good MOOC and the universities," Working Papers halshs-01996582, HAL.
    5. Wei Gu & Ying Xu & Zeng-Jun Sun, 2021. "Does MOOC Quality Affect Users’ Continuance Intention? Based on an Integrated Model," Sustainability, MDPI, vol. 13(22), pages 1-16, November.
    6. Luis Armona & Rajashri Chakrabarti & Michael F. Lovenheim, 2018. "How Does For-profit College Attendance Affect Student Loans, Defaults and Labor Market Outcomes?," NBER Working Papers 25042, National Bureau of Economic Research, Inc.
    7. Allen R. Sanderson & John J. Siegfried, 2018. "The National Collegiate Athletic Association Cartel: Why it Exists, How it Works, and What it Does," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 52(2), pages 185-209, March.
    8. Emilie Dargaud & Frédéric Jouneau-Sion, 2019. "The good MOOC and the universities," Working Papers 1905, Groupe d'Analyse et de Théorie Economique Lyon St-Etienne (GATE Lyon St-Etienne), Université de Lyon.
    9. John J. Cheslock & Ozan Jaquette, 2022. "Concentrated or Fragmented? The U.S. Market for Online Higher Education," Research in Higher Education, Springer;Association for Institutional Research, vol. 63(1), pages 33-59, February.
    10. Armona, Luis & Chakrabarti, Rajashri & Lovenheim, Michael F., 2022. "Student debt and default: The role of for-profit colleges," Journal of Financial Economics, Elsevier, vol. 144(1), pages 67-92.
    11. Paul Belleflamme & Julien Jacqmin, 2016. "An Economic Appraisal of MOOC Platforms: Business Models and Impacts on Higher Education," CESifo Economic Studies, CESifo Group, vol. 62(1), pages 148-169.
    12. David J. Deming & Claudia Goldin & Lawrence F. Katz & Noam Yuchtman, 2015. "Can Online Learning Bend the Higher Education Cost Curve?," American Economic Review, American Economic Association, vol. 105(5), pages 496-501, May.
    13. Galkiewicz, Agata & Marcus, Jan & Siedler, Thomas, 2024. "E-Learning at Universities: Does Starting with Difficult Questions Affect Student Performance?," IZA Discussion Papers 17479, IZA Network @ LISER.
    14. Emilie Dargaud & Fréedéeric Jouneau-Sion, 2020. "The good MOOC and the universities," Education Economics, Taylor & Francis Journals, vol. 28(5), pages 474-490, September.

    More about this item

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

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