For decades, the federal government has expected vocationally-focused programs in higher education, especially among for-profit colleges, to lead to gainful employment in a profession. In the mid-2010s, the U.S. Department of Education developed gainful employment (GE) regulations that sought to tie a program's federal financial aid eligibility to graduates’ debt-to-earnings ratios. We use a regression discontinuity design to examine whether for-profit programs’ performance on GE was associated with the likelihood of closing the program or college. Although the regulations were repealed before any program lost federal funding, we find that passing GE was associated with a lower likelihood of program and college closures.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.