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

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  • Stephanie Riegg Cellini

Abstract

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)

Suggested Citation

  • Stephanie Riegg Cellini, 2009. "Crowded Colleges and College Crowd-Out: The Impact of Public Subsidies on the Two-Year College Market," American Economic Journal: Economic Policy, American Economic Association, vol. 1(2), pages 1-30, August.
    • Handle: RePEc:aea:aejpol:v:1:y:2009:i:2:p:1-30
    Note: DOI: 10.1257/pol.1.2.1
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    More about this item

    JEL classification:

    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

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    1. Crowded Colleges and College Crowd-Out: The Impact of Public Subsidies on the Two-Year College Market (American Economic Journal: Economic Policy 2009) in ReplicationWiki

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