The Choice of For-Profit College Report as inadecuate

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In this paper I investigate whether students self-select into the US 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 where student-s choice set is defined across four alternatives: no college, a for-profit college, a non-profit 2-year or less-than-2-year college, and a non-selective non-profit 4-year college. I find that students self-select into for-profit sector. Three groups of significant factors stand out. First, choiceof for-profit sector is characterized by lower parental involvementin student-s schooling. Second, ceteris paribus,for-profit-bound students are more likely to display high levels ofschool absenteeism and to give birth as early as 10th grade. Third,the average predicted probabilities of choosing for-profit sectorincrease as in-state public community college tuition rises and county-specificconcentration of for-profit providers grows larger.

Item Type: MPRA Paper -

Original Title: The Choice of For-Profit College-

Language: English-

Keywords: for-profit; private; education; college; choice; vocational; workforce; training-

Subjects: I - Health, Education, and Welfare > I2 - Education and Research Institutions > I21 - Analysis of EducationD - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D83 - Search ; Learning ; Information and Knowledge ; Communication ; Belief ; UnawarenessH - Public Economics > H4 - Publicly Provided Goods > H44 - Publicly Provided Goods: Mixed Markets-

Author: Chung, Anna


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