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American Economic Journal: Economic Policy: Vol. 1 No. 2 (August 2009)

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

Article Citation

Cellini, Stephanie Riegg. 2009. "Crowded Colleges and College Crowd-Out: The Impact of Public Subsidies on the Two-Year College Market." American Economic Journal: Economic Policy, 1(2): 1-30.

DOI: 10.1257/pol.1.2.1

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)

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Authors

Cellini, Stephanie Riegg (George Washington U)

JEL Classifications

H75: State and Local Government: Health, Education, and Welfare
I22: Educational Finance
I23: Higher Education and Research Institutions

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