Entry and Competition in the Market for Short-Cycle Programs

Short-cycle higher education programs form skilled human capital in two or three years and are eminently oriented to the labor market. While they could play a key role in the upskilling and reskilling of the workforce required for employment recove...

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Main Authors:	Carranza, Juan Esteban, Ferreyra, Maria Marta, Gazmuri, Ana, Franco, Andrea
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2021
Subjects:	TERTIARY EDUCATION HIGHER EDUCATION EDUCATION ENROLLMENT
Online Access:	http://documents.worldbank.org/curated/en/969591624886015699/Entry-and-Competition-in-the-Market-for-Short-Cycle-Programs http://hdl.handle.net/10986/35887

id	okr-10986-35887
recordtype	oai_dc
spelling	okr-10986-358872021-07-02T05:10:55Z Entry and Competition in the Market for Short-Cycle Programs Carranza, Juan Esteban Ferreyra, Maria Marta Gazmuri, Ana Franco, Andrea TERTIARY EDUCATION HIGHER EDUCATION EDUCATION ENROLLMENT Short-cycle higher education programs form skilled human capital in two or three years and are eminently oriented to the labor market. While they could play a key role in the upskilling and reskilling of the workforce required for employment recovery after the COVID-19 pandemic, they will only do so if their supply responds fast and nimbly to the skill needs to local labor markets. This paper studies the entry, competition, and turnover of short-cycle higher education programs (SCPs) in Colombia. It documents a large expansion in the number of programs over the past fifteen years and studies the frequency of program entry and exit. It finds that the market for SCPs is more dynamic than the market for bachelor's programs, as it exhibits greater turnover or “churn" of programs, with a significantly higher rate of program entry and exit in a given year. Exploiting data on local productivity and employment by field of study, the paper finds that SCPs are more responsive than bachelor's programs to changes in local labor demand. Among SCP providers, private and non-university institutions respond the most to the local economy. SCP entry is deterred by the presence of competitors and responds to cost considerations, particularly among private institutions. For a given institution, exit and entry decisions are highly correlated within a field of study. While enrollment is sensitive to the number of competitors, institutions differentiate their product by tuition, field, and geographic coverage. Overall, the evidence suggests that SCPs might indeed respond fast and nimbly to the local labor market needs created by the pandemic. 2021-07-01T14:21:59Z 2021-07-01T14:21:59Z 2021-06 Working Paper http://documents.worldbank.org/curated/en/969591624886015699/Entry-and-Competition-in-the-Market-for-Short-Cycle-Programs http://hdl.handle.net/10986/35887 English Policy Research Working Paper;No. 9716 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Colombia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	TERTIARY EDUCATION HIGHER EDUCATION EDUCATION ENROLLMENT
spellingShingle	TERTIARY EDUCATION HIGHER EDUCATION EDUCATION ENROLLMENT Carranza, Juan Esteban Ferreyra, Maria Marta Gazmuri, Ana Franco, Andrea Entry and Competition in the Market for Short-Cycle Programs
geographic_facet	Latin America & Caribbean Colombia
relation	Policy Research Working Paper;No. 9716
description	Short-cycle higher education programs form skilled human capital in two or three years and are eminently oriented to the labor market. While they could play a key role in the upskilling and reskilling of the workforce required for employment recovery after the COVID-19 pandemic, they will only do so if their supply responds fast and nimbly to the skill needs to local labor markets. This paper studies the entry, competition, and turnover of short-cycle higher education programs (SCPs) in Colombia. It documents a large expansion in the number of programs over the past fifteen years and studies the frequency of program entry and exit. It finds that the market for SCPs is more dynamic than the market for bachelor's programs, as it exhibits greater turnover or “churn" of programs, with a significantly higher rate of program entry and exit in a given year. Exploiting data on local productivity and employment by field of study, the paper finds that SCPs are more responsive than bachelor's programs to changes in local labor demand. Among SCP providers, private and non-university institutions respond the most to the local economy. SCP entry is deterred by the presence of competitors and responds to cost considerations, particularly among private institutions. For a given institution, exit and entry decisions are highly correlated within a field of study. While enrollment is sensitive to the number of competitors, institutions differentiate their product by tuition, field, and geographic coverage. Overall, the evidence suggests that SCPs might indeed respond fast and nimbly to the local labor market needs created by the pandemic.
format	Working Paper
author	Carranza, Juan Esteban Ferreyra, Maria Marta Gazmuri, Ana Franco, Andrea
author_facet	Carranza, Juan Esteban Ferreyra, Maria Marta Gazmuri, Ana Franco, Andrea
author_sort	Carranza, Juan Esteban
title	Entry and Competition in the Market for Short-Cycle Programs
title_short	Entry and Competition in the Market for Short-Cycle Programs
title_full	Entry and Competition in the Market for Short-Cycle Programs
title_fullStr	Entry and Competition in the Market for Short-Cycle Programs
title_full_unstemmed	Entry and Competition in the Market for Short-Cycle Programs
title_sort	entry and competition in the market for short-cycle programs
publisher	World Bank, Washington, DC
publishDate	2021
url	http://documents.worldbank.org/curated/en/969591624886015699/Entry-and-Competition-in-the-Market-for-Short-Cycle-Programs http://hdl.handle.net/10986/35887
_version_	1764484034179629056

Entry and Competition in the Market for Short-Cycle Programs

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