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For-Profit Colleges—Students Pay More, Get Less

Public institution certificate holders earn more.

As the U.S. Department of Education proposes rolling back the Gainful Employment rules regulating for-profit and vocational education programs, accurate estimates of the earnings outcomes and debt incurred by students in these programs are essential for judging the merits of various policy options. Researchers Stephanie Riegg Cellini and Nicholas Turner generated comprehensive new estimates of the labor market outcomes and debt incurred by students in vocational certificate programs in the for-profit sector.
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For-Profit Schools Are Not Improving the Earnings of Their Graduates

graduates

In “Gainfully employed? New evidence on the earnings, employment, and debt of for-profit certificate students,” Stephanie Riegg Cellini (Brown Center on Education Policy) reports on her work with Nicholas Turner (Federal Reserve Board of Governors). They studied 14 years of earnings for more than 800,000 federally aided certificate students to determine how well for-profit schools are doing.
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Job Corps Improves Earnings, Employment, and Use of Public Benefits…Even for Eligible Nonparticipants

Job Corps effects

Government-sponsored job training programs are believed to be essential to improve the job prospects of economically disadvantaged citizens and reduce dependence on safety net programs, but do they work? Job Corps is the main federal training program in the United States targeted at disadvantaged youth ages 16 to 24. Xuan Chen (Renmin University of China), Carlos A. Flores (California Polytechnic State University at San Luis Obispo), and Alfonso Flores-Lagunes (Syracuse University) measure the effectiveness of Job Corps training and find a positive effect on three important outcomes—earnings, employment, and amount of public benefits received.
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