Examining the Impact of Government Incentives on the Decisions of Ontario College Applicants

Examining the Impact of Government Incentives on the Decisions of Ontario College Applicants was written by Ryan Tishcoff, Sarah Brumwell, Miha Isik and Amy Kaufman, Higher Education Quality Council of Ontario.

New study finds that government incentives for postsecondary programs tied to labour market gaps are not well known by prospective college students.

The Ontario government offers financial incentives to encourage applications to and enrollment in postsecondary programs tied to areas of labour market demand, many of which are offered by publicly assisted colleges. Some provide financial support for those studying to fill labour market shortages, others target specific regions or demographics. Awareness of these incentive programs, however, is crucial for their overall efficacy.

HEQCO analyzed results from the 2023-24 Ontario College Application Services Applicant Experience Survey (AES), in which applicants were asked about their awareness of four incentive programs — Better Jobs Ontario (BJO), the Personal Support Worker Incentive (PSW), the Bridging Education Grant in Nursing Program (BEGIN) and the Ontario Learn and Stay Grant (OLSG) — and whether and how these programs influenced the academic programs they applied to. The four programs were designed to address urgent labour market gaps, which provide funding either directly or indirectly through institutions or employers.

Many AES respondents in the sample were unaware of the incentive programs included in the survey. While just over half (55%) were aware of at least one incentive, only 30% were aware of more than one and just 9% were aware of three or more. Applicants’ awareness varied by program: Awareness was low for the BJO (11%), PSW (12%) and BEGIN (17%) incentives, though somewhat higher for the OLSG (38%). Applicants’ awareness also varied by age: Awareness of the OLSG was higher among younger applicants, while awareness of the PSW and BEGIN programs was higher among older applicants and awareness of the BJO incentive was only slightly higher among older applicants.

Awareness of these incentives positively influenced application and enrollment decisions among survey respondents, as 37% indicated that their decisions were influenced “a great deal” by the incentives. However, for those survey respondents aware of an incentive tied to their field of study, 43% indicated they would have applied without the incentive. The influence of these incentives was also stronger for older applicants, as nearly half of respondents reported they were influenced “a great deal,” and those aged 45 and older less likely to apply without incentives.

This study offers an important first step in understanding the impact of government incentives on learners’ application and enrollment decisions, as well as insight into how government could strengthen the impact of incentives by increasing awareness among prospective applicants. Further evaluation would require additional data from and interviews with government stakeholders, in addition to an examination of the complex factors that influence prospective college students’ decision making.