The Competitive Effects of Online Education / David J. Deming, Michael Lovenheim, Richard W. Patterson.

Format:

Book

Author/Creator:

Deming, David J.

Contributor:

National Bureau of Economic Research.

Lovenheim, Michael.

Patterson, Richard W.

Series:

Working Paper Series (National Bureau of Economic Research) no. w22749.

NBER working paper series no. w22749

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2016.

Summary:

We study the impact of online degree programs on the market for U.S. higher education. Online degree programs increase the competitiveness of local education markets by providing additional options in areas that previously only had a small number of brick-and-mortar schools. We show that local postsecondary institutions in less competitive markets experienced relative enrollment declines following a regulatory change in 2006 that increased the market entry and enrollment of online institutions. Impacts on enrollment were concentrated among private non-selective institutions, which are likely to be the closest competitors to online degree programs. We also find increases in per-student instructional spending among public institutions. Our results suggest that by increasing competitive pressure on local schools, online education can be an important driver of innovation and productivity in U.S. higher education.

Notes:

Print version record

October 2016.