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Choice of for-profit college

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  • Chung, Anna S.

Abstract

In this paper I investigate whether students self-select into the U.S. for-profit colleges or whether the choice of for-profit sector is accidental or due to the reasons external to the students (geographic exposure to for-profit providers, tuition pricing, or random circumstances). The main student-level data samples come from the National Education Longitudinal Study of 1988 (NELS:88) and the associated Postsecondary Education Transcript Study (PETS:2000). I estimate a multinomial logit of college choice and find that students self-select into for-profit colleges and that the choice of for-profit college is affected by community college tuition. The probability of a student choosing a for-profit college is also heavily influenced by the student's socioeconomic background and parental involvement in the student's schooling. The students with higher school absenteeism are more likely to enroll into for-profit college. Finally, the concentration of for-profit colleges in the student's county is important for the choice of for-profit college.

Suggested Citation

  • Chung, Anna S., 2012. "Choice of for-profit college," Economics of Education Review, Elsevier, vol. 31(6), pages 1084-1101.
  • Handle: RePEc:eee:ecoedu:v:31:y:2012:i:6:p:1084-1101 DOI: 10.1016/j.econedurev.2012.07.004
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    References listed on IDEAS

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    Cited by:

    1. Stephanie R. Cellini & Rajeev Darolia & Lesley J. Turner, 2016. "Where Do Students Go when For-Profit Colleges Lose Federal Aid?," NBER Working Papers 22967, National Bureau of Economic Research, Inc.
    2. Stephanie Riegg Cellini & Claudia Goldin, 2014. "Does Federal Student Aid Raise Tuition? New Evidence on For-Profit Colleges," American Economic Journal: Economic Policy, American Economic Association, vol. 6(4), pages 174-206, November.
    3. Gilpin, Gregory A. & Saunders, Joseph & Stoddard, Christiana, 2015. "Why has for-profit colleges’ share of higher education expanded so rapidly? Estimating the responsiveness to labor market changes," Economics of Education Review, Elsevier, vol. 45(C), pages 53-63.
    4. Caviris, Nicole Stefanie, 2014. "Educational attainment, college major choice, the gender wage gap, and average starting salaries of college graduates in the United States, 1967-2011," ISU General Staff Papers 201401010800004865, Iowa State University, Department of Economics.
    5. Cellini, Stephanie Riegg & Chaudhary, Latika, 2014. "The labor market returns to a for-profit college education," Economics of Education Review, Elsevier, vol. 43(C), pages 125-140.
    6. Webber, Douglas A., 2017. "Risk-sharing and student loan policy: Consequences for students and institutions," Economics of Education Review, Elsevier, vol. 57(C), pages 1-9.
    7. Jacqmin, Julien, 2014. "The Emergence of For-Profit Higher Education Institutions," MPRA Paper 59299, University Library of Munich, Germany.

    More about this item

    Keywords

    College choice; For-profit; Information;

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • H44 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Goods: Mixed Markets
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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