For-Profit College Entry and Not-for-Profit Enrollment: Crowding out or crowding in?

Nicholas Turner, Office of Tax Analysis, US Treasury

Abstract

Exploiting the rapid expansion of the for-profit sector between 2002 and 2010, I explore how for-profit entry affects enrollment at comparable not-for-profit institutions. The results suggest that there is a substantial crowd-out of students at two-year schools in close proximity to the entrant school. Among four-year schools, the results imply that there is no meaningful reduction at not-for-profit schools following for-profit entry.