The Effects of the Expansion of For-Profit Colleges on Student Enrollments and Outcomes at Community Colleges

Abstract

This study is the first large-scale examination of the impact of for-profit colleges on the enrollment and outcomes of students at other postsecondary institutions. Using data primarily from the Integrated Postsecondary Education Data System (IPEDS) and a differences-in-differences approach, I estimate the effect of a new for-profit college opening on community college enrollments and degree completions, as well as county education levels. My results suggest that community college enrollments and degree completions do not decline when a new degree-granting for-profit college opens nearby. Furthermore, I find evidence that the county-level production of short- and long-term certificates increases after a new for-profit college opens, though the number of associate’s degrees does not increase. This evidence should serve to broaden conversations about the role of for-profit colleges in the larger landscape of the American higher education system.