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

  • Stephanie Riegg Cellini
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    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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    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
    Contact details of provider: Web page: https://www.aeaweb.org/aej-policy
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