The Effects of For-Profit College Training on Earnings Report as inadecuate

The Effects of For-Profit College Training on Earnings - Download this document for free, or read online. Document in PDF available to download.


In this paper, I obtain the estimates of the effectsof for-profit training and credentials on students- annualized earnings. I differentiate for-profit students bythe program level and account for students- self-selection into for-profitsector. I formulate the evaluation as the series progressing in theassumption on the source of selection bias: a basic specificationof the Mincer earnings model is followed up by the rich-covariatemodel of selection on observables and finally by the multinomial modelof selection into for-profit postsecondary training. To identify theselection into for-profit training, I use two exclusion restrictions:state-specific community college tuition, and county-specific shareof Title-IV eligible for-profit schools. I find that selection into employment is not a pressing issuewith for-profit college trained workers. Also, after controllingfor self-selection into for-profit sector I find that on average areceipt of a for-profit certificate is associated with an increasein 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 claimthat the lack of the significant effects of for-profit Associate degreesfor males are due to the unrelated vocational training.

Item Type: MPRA Paper -

Original Title: The Effects of For-Profit College Training on Earnings-

Language: English-

Keywords: for-profit; private; workforce; training; education; vocational; wages-

Subjects: J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure ; Wage DifferentialsI - Health, Education, and Welfare > I2 - Education and Research Institutions > I21 - Analysis of EducationH - Public Economics > H4 - Publicly Provided Goods > H44 - Publicly Provided Goods: Mixed Markets-

Author: Chung, Anna


Related documents