The Benefits of Alternatives to Conventional College: Labor-Market Returns to Proprietary Schooling

40 Pages Posted: 7 Jul 2016

See all articles by Christopher Jepsen

Christopher Jepsen

University College Dublin (UCD) - School of Economics

Peter R. Mueser

University of Missouri; IZA Institute of Labor Economics

Kyung-Seong Jeon

University of Missouri at Columbia

Abstract

This paper provides novel evidence on the labor-market returns to proprietary (also called for-profit) postsecondary school attendance. Specifically, we link administrative records on proprietary school attendance with quarterly earnings data for nearly 70,000 students. Because average age at school entry is 30 years of age, and because we have earnings data for five or more years prior to attendance, we estimate a person fixed-effects model to control for time-invariant differences across individuals. By five years after entry, quarterly earnings returns are around 26 percent for men and 21-22 percent for women. Average returns are quite similar for associate's degree programs and certificate programs, but vary substantially by field of study. Differences in return by gender are completely explained by differences in field of study.

Keywords: postsecondary education, labor-market returns, proprietary schooling

JEL Classification: J24, I26

Suggested Citation

Jepsen, Christopher and Mueser, Peter R. and Jeon, Kyung-Seong, The Benefits of Alternatives to Conventional College: Labor-Market Returns to Proprietary Schooling. IZA Discussion Paper No. 10007, Available at SSRN: https://ssrn.com/abstract=2803839

Christopher Jepsen (Contact Author)

University College Dublin (UCD) - School of Economics ( email )

Belfield
Belfield, Dublin 4 4
Ireland

Peter R. Mueser

University of Missouri ( email )

331 Professional Building
Dept. Economics and Truman School Public Affairs
Columbia, MO 65211
United States
573-882-6427 (Phone)

HOME PAGE: http://web.missouri.edu/~mueser/

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Kyung-Seong Jeon

University of Missouri at Columbia ( email )

332 Cornell Hall
Columbia, MO Columbia 65211
United States
573-882-5566 (Phone)
573-882-2697 (Fax)

HOME PAGE: http://economics.missouri.edu/people/jeon.shtml

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