We use data from the Texas Schools Microdata Panel (TSMP) to examine the extent to which dropouts use the GED as a route to post-secondary education. The paper develops a model pointing out the potential biases in estimating the effects of taking the "GED path" to postsecondary education. Lacking suitable instruments that would allow us…

John Tyler and Magnus Lofstrom take a close look at the problems posed when students do not complete high school. The authors begin by discussing the ongoing, sometimes heated, debate over how prevalent the dropout problem is. They note that one important reason for discrepancies in reported dropout rates is whether holders of the General…

For high school dropouts who last attempted the General Educational Development (GED) test in Florida and New York in 1989-1990, earnings of those without GEDs, least-skilled GED holders, and highest-skilled GED holders were compared. Higher GED scores were associated with higher earnings, except for white males. These earnings differences were as…

In 1998, the U.S. Department of Education published a comprehensive synthesis of the General Educational Development certificate (GED). Since that time, additional research has shed light on the economic benefits of the GED. This review of that research highlights four lessons. First, the presence of the GED option may encourage some students to…

While many previous studies have examined the economic impact of the General Educational Development (GED) on labor market outcomes, the results from these studies are all based on regression analyses that employ questionable comparison groups. As a result, all previous studies of the economic impact of the GED likely suffer from "selectivity…

A study used data from a long-standing examination system, the General Educational Development (GED) certificate, to illustrate that the details of examination systems have marked impacts on the number of test takers who obtain the desired credential and on the racial/ethnic composition of passers. Data provided by the Florida Department of…

As part of standards-based educational reform efforts, more than 40 states will soon require students to achieve passing scores on standardized exams in order to obtain a high school diploma. Currently, many states are struggling with the design of their examination systems, debating such questions as which subjects should be tested, what should…

A study examined evidence of any labor market payoff for school dropouts and if they acquire cognitive skills, and studied whether the payoff differs by gender and race/ethnicity. It analyzed data containing information on the universe of school dropouts in New York and Florida who took the General Educational Development (GED) exams between…

Data on the sophomore cohort of the original High School and Beyond (HS&B) study were analyzed to determine the value of the General Educational Development (GED) credential versus that of the conventional high school diploma in explaining the earnings of 27-year-old males in the early 1990s. The study sample consisted of those 4,899 male…

The impact of the General Educational Development certificate (GED) on the earnings of high school dropouts who seek the credential were estimated. The estimates were derived by using several different types of estimation methods to analyze data linking Florida GED test information with quarterly earnings records collected by Florida's…

The economic benefits of the General Educational Development certificate (GED) were examined through a review of four published papers and four unpublished working papers on the GED's benefits. Key findings were as follows: (1) a GED provides economic benefits only to low-skilled dropouts; (2) economic benefits of a GED appear over time--often…