The labor market returns to a for-profit college education

B-Tier
Journal: Economics of Education Review
Year: 2014
Volume: 43
Issue: C
Pages: 125-140

Authors (2)

Cellini, Stephanie Riegg (not in RePEc) Chaudhary, Latika (Naval Postgraduate School)

Score contribution per author:

1.009 = (α=2.02 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

A lengthy literature estimating the returns to education has largely ignored the for-profit sector. In this paper, we estimate the earnings gains to for-profit college attendance using restricted-access data from the 1997 National Longitudinal Survey of Youth (NLSY97). Using an individual fixed effects estimation strategy that allows us to control for time-invariant unobservable characteristics of students, we find that students who enroll in associate's degree programs in for-profit colleges experience earnings gains of about 10% relative to high school graduates with no college degree, conditional on employment. Since associate's degree students attend for an average of 2.6 years, this translates to a 4% return per year of education in a for-profit college, slightly lower than estimates of returns for other sectors found in the literature.

Technical Details

RePEc Handle
repec:eee:ecoedu:v:43:y:2014:i:c:p:125-140
Journal Field
Education
Author Count
2
Added to Database
2026-01-25