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)
Cellini, Stephanie Riegg.
"Crowded Colleges and College Crowd-Out: The Impact of Public Subsidies on the Two-Year College Market."
American Economic Journal: Economic Policy,
State and Local Government: Health, Education, and Welfare
Higher Education and Research Institutions