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Ontario’s Colleges of Applied Arts and Technology (CAATs) were established as an alternative public postsecondary choice for students to provide vocational education programmes to serve Ontario’s labour market. In the past 20 years years, neoliberal policies have pressured CAATs to be more entrepreneurial, efficient, and fiscally sustainable. Declining funding and enrolment and burgeoning demand from international students led some colleges to enter third-party arrangements (TPAs) with for-profit private career colleges (PCCs). This research used a qualitative research design to examine the development, growth and impact of TPAs between 2005 and 2019. Two overarching theoretical frameworks grounded the research: historical institutionalism (Streeck &amp; Thelen, 2005) and Principal-Agent Theory (Mitnick, 1973; Ross, 1975). Document analysis and 25 semi-structured interviews were used to elucidate the trajectory of the formation, growth and cementing of TPAs into the Ontario college system. Inflection points were conceptualised to explain how decisions and conditions contributed to the trajectory. Competition, marketisation of higher education, economics, demographics and policies were seen as contributing to the formation, growth and formalisation of the TPAs. TPAs were perceived to introduce strategic risks to public colleges concerning future funding and enablement of PCCs, which have implications for system design, including further privatisation of Ontario’s public college system.

Third-party arrangements between private and public colleges in Ontario: benefits, threats, implications for policy