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you are here: Home > Our Expertise > Thought Leadership > Parthenon Public Comment on Gainful Employment

Parthenon Public Comment on Gainful Employment

9.9.2010 by Roger Brinner

This study examines the Missouri data released by the Department of Education to estimate the impacts of the proposed gainful employment regulation. These regulations represent an effort to ensure that students attend quality programs and that both students and taxpayers receive good value for their joint investment in post-secondary education. This comment in no way challenges these admirable policy goals; indeed, our aim is to point out that the regulations as proposed may accidentally frustrate these policy goals. In their current form, the regulations are likely to:
  • Cause 400,000 students to leave post-secondary education each year
  • Reduce lifetime incomes for these students by approximately 15%, leading to $400MM in lost annual tax revenues
  • Cause 90,000-100,000 job losses
    Lead to a $5.3B annual burden on taxpayers due to lower tax receipts from students who leave post-secondary education, employees who lose their jobs, along with higher subsidies for public colleges