The Effects of For-Profit College Training on Earnings
In this paper, I obtain the estimates of the effects of for-profit training and credentials on students' annualized earnings. I differentiate for-profit students by the program level and account for students' self-selection into for-profit sector. I formulate the evaluation as the series progressing in the assumption on the source of selection bias: a basic specification of the Mincer earnings model is followed up by the rich-covariate model of selection on observables and finally by the multinomial model of selection into for-profit postsecondary training. To identify the selection into for-profit training, I use two exclusion restrictions: state-specific community college tuition, and county-specific share of Title-IV eligible for-profit schools. I find that selection into employment is not a pressing issue with for-profit college trained workers. Also, after controlling for self-selection into for-profit sector I find that on average a receipt of a for-profit certificate is associated with an increase in individual annualized earnings. However, this finding varies by gender, so I investigate various explanations for this gender divide. I observe that the differences in earnings effects between men and women are not systematically related to occupational differences by gender. Also, there may be some merit to the claim that the lack of the significant effects of for-profit Associate degrees for males are due to the unrelated vocational training.
|Date of creation:||Dec 2008|
|Date of revision:||May 2009|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dubin, Jeffrey A & McFadden, Daniel L, 1984. "An Econometric Analysis of Residential Electric Appliance Holdings and Consumption," Econometrica, Econometric Society, vol. 52(2), pages 345-362, March.
- Richard Blundell & Lorraine Dearden & Barbara Sianesi, 2003.
"Evaluating the impact of education on earnings in the UK: Models, methods and results from the NCDS,"
IFS Working Papers
W03/20, Institute for Fiscal Studies.
- Richard Blundell & Lorraine Dearden & Barbara Sianesi, 2004. "Evaluating the impact of education on earnings in the UK: models, methods and results from the NCDS," LSE Research Online Documents on Economics 19451, London School of Economics and Political Science, LSE Library.
- Richard Blundell & Lorraine Dearden & Barbara Sianesi, 2004. "Evaluating the Impact of Education on Earnings in the UK: Models, Methods and Results from the NCDS," CEE Discussion Papers 0047, Centre for the Economics of Education, LSE.
- Ana M. Ferrer & W. Craig Riddell, 2002. "The role of credentials in the Canadian labour market," Canadian Journal of Economics, Canadian Economics Association, vol. 35(4), pages 879-905, November.
- Chung, Anna, 2008. "The Choice of For-Profit College," MPRA Paper 18971, University Library of Munich, Germany, revised Nov 2009.
- Heckman, James J. & Lochner, Lance J. & Todd, Petra E., 2006. "Earnings Functions, Rates of Return and Treatment Effects: The Mincer Equation and Beyond," Handbook of the Economics of Education, Elsevier.
- Heckman, James J. & Lochner, Lance John & Todd, Petra E., 2005. "Earnings Functions, Rates of Return and Treatment Effects: The Mincer Equation and Beyond," IZA Discussion Papers 1700, Institute for the Study of Labor (IZA).
- James J. Heckman & Lance J. Lochner & Petra E. Todd, 2005. "Earnings Functions, Rates of Return and Treatment Effects: The Mincer Equation and Beyond," NBER Working Papers 11544, National Bureau of Economic Research, Inc.
- Grubb, W. Norton, 1992. "Postsecondary vocational education and the sub-baccalaureate labor market: New evidence on economic returns," Economics of Education Review, Elsevier, vol. 11(3), pages 225-248, September.
- De Hoyos, R.E., 2006. "Structural Modelling of Female Labour Participation and Occupation Decisions," Cambridge Working Papers in Economics 0611, Faculty of Economics, University of Cambridge.
- Kane, Thomas J & Rouse, Cecilia Elena, 1995. "Labor-Market Returns to Two- and Four-Year College," American Economic Review, American Economic Association, vol. 85(3), pages 600-614, June.
- Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-512, March.
- Richard Blundell & Lorraine Dearden & Barbara Sianesi, 2005. "Evaluating the effect of education on earnings: models, methods and results from the National Child Development Survey," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 168(3), pages 473-512.
- Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
- Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-161, January.
- Gordon B. Dahl, 2002. "Mobility and the Return to Education: Testing a Roy Model with Multiple Markets," Econometrica, Econometric Society, vol. 70(6), pages 2367-2420, November.
- Gordon B. Dahl, 2002. "Mobility and the Return to Education: Testing a Roy Model with Multiple Markets," RCER Working Papers 488, University of Rochester - Center for Economic Research (RCER).
- Jaeger, David A & Page, Marianne E, 1996. "Degrees Matter: New Evidence on Sheepskin Effects in the Returns to Education," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 733-740, November.
- Dave E. Marcotte, 2010. "The Earnings Effect Of Education At Community Colleges," Contemporary Economic Policy, Western Economic Association International, vol. 28(1), pages 36-51, 01.
- Marcotte, Dave E., 2006. "The Earnings Effect of Education at Community Colleges," IZA Discussion Papers 2334, Institute for the Study of Labor (IZA).
- Chung, Anna, 2008. "For-Profit Student Heterogeneity," MPRA Paper 18967, University Library of Munich, Germany, revised Nov 2009. Full references (including those not matched with items on IDEAS)