Sorting, training, and careers: public and private universities as complementary providers of doctoral education

The growth of private providers has increased heterogeneity in doctoral education, raising questions about how university types contribute to advanced skill formation. Using linked administrative labour-market data on PhD graduates in economics and business studies in Germany, we analyse how pre-doctoral employment histories relate to the choice between public and private universities and how careers unfold during and after the doctorate. We find strong sorting: candidates with stable private-sector employment disproportionately enroll in private universities, while those embedded in academic workplaces select public universities. Many private-university candidates complete the doctorate alongside non-academic employment, whereas public-university candidates typically hold academic positions during training. After graduation, public-university graduates are more likely to remain in academia and sustain research activity, whereas private-university graduates more often advance into high-income and leadership positions outside academia. Public and private universities thus operate as organizational complements, serving distinct segments of a heterogeneous doctoral population.