The Labor Market Returns to For-Profit Higher Education: Evidence for Transfer Students

Objective: This study examines the labor market gains for students who enrolled at for-profit colleges after beginning their postsecondary education in community college. Method: We use student-level administrative record data from college transcripts, unemployment insurance earnings data, and progr...

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Bibliographic Details
Published in:Community college review 2020-04, Vol.48 (2), p.133-155
Main Authors: Liu, Vivian Yuen Ting, Belfield, Clive
Format: Article
Language:English
Subjects:
College students
College Transfer Students
Community College Students
Community Colleges
Community Relations
Education Work Relationship
Higher education
Income
Labor market
Opportunity costs
Outcomes of Education
Proprietary Schools
Students
Transfer Students
Two Year College Students
Wages
Wages & salaries
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Summary:Objective: This study examines the labor market gains for students who enrolled at for-profit colleges after beginning their postsecondary education in community college. Method: We use student-level administrative record data from college transcripts, unemployment insurance earnings data, and progression data from the National Student Clearinghouse across full entry cohorts of community college students in two statewide systems between 2001 and 2006. Using regression analysis and fixed effect methods, we calculate the wage gains to attainment across different student transfer patterns. Results: We find significant wage penalties to transfer to a for-profit college instead of to a public or private nonprofit college. For some student groups, earnings are higher if they drop out of community college instead of transferring to a for-profit college. Conclusion: Students in for-profit colleges do have lower opportunity costs in terms of foregone earnings while enrolled in college. However, these do not sufficiently compensate for lower earnings growth after college.
ISSN:0091-5521
1940-2325
DOI:10.1177/0091552119886659