Choice of for-profit college
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.
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