• AEA in the news
  • October 31, 2016

A Conveyor Belt of Dropouts and Debt at For-Profit Colleges


The New York Times cited a paper that appeared in the Winter 2012 issue of Journal of Economic Perspectives about for-profit colleges. In “The For-Profit Postsecondary School Sector: Nimble Critters or Agile Predators?” authors David J. Deming, Claudia Goldin, and Lawrence F. Katz find that students at for-profit schools end up with higher unemployment and lower earnings than their peers at other colleges. They also found that they have far greater default rates on their loans.