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Does the G.E.D. Improve Earnings? Estimates from a Sample of Both Successful and Unsuccessful G.E.D. Candidates

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  • John H. Tyler

Abstract

The author uses a unique data set constructed from Florida General Education Development certificate (GED) and Unemployment Insurance (UI) administrative records to estimate the relative earnings of two groups of male high school dropouts who took the GED exams in 1995: those who passed the exams, obtaining the credential, and those who failed the exams. Estimates from several different specifications all show greater mean quarterly earnings growth among those who obtained a GED than among unsuccessful candidates. The advantage was small in dollar terms—only about $1,400 annually, six years after the exams—but, given the very low initial earnings of these school dropouts, it was large in relative terms, growing from zero immediately after the 1995 exams to 13–20% six years later. Most of these gains appear to reflect not differential wage growth between the two groups, but a differential rate of movement from non-employment to employment.

Suggested Citation

  • John H. Tyler, 2004. "Does the G.E.D. Improve Earnings? Estimates from a Sample of Both Successful and Unsuccessful G.E.D. Candidates," ILR Review, Cornell University, ILR School, vol. 57(4), pages 579-598, July.
    • Handle: RePEc:sae:ilrrev:v:57:y:2004:i:4:p:579-598
    DOI: 10.1177/001979390405700406
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    References listed on IDEAS

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    1. Richard J. Murnane & John B. Willett & John H. Tyler, 2000. "Who Benefits from Obtaining a GED? Evidence from High School and Beyond," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 23-37, February.
    2. Richard J. Murnane & John B. Willett & Kathryn Parker Boudett, 1997. "Does Acquisition of a GED Lead to More Training, Post-Secondary Education, and Military Service for School Dropouts?," NBER Working Papers 5992, National Bureau of Economic Research, Inc.
    3. Kornfeld, Robert & Bloom, Howard S, 1999. "Measuring Program Impacts on Earnings and Employment: Do Unemployment Insurance Wage Reports from Employers Agree with Surveys of Individuals?," Journal of Labor Economics, University of Chicago Press, vol. 17(1), pages 168-197, January.
    4. Richard J. Murnane & John B. Willett & Kathryn Parker Boudett, 1997. "Does a Ged Lead to More Training, Post-Secondary Education, and Military Service for School Dropouts?," ILR Review, Cornell University, ILR School, vol. 51(1), pages 100-116, October.
    5. Richard J. Murnane & John B. Willett & Kathryn Parker Boudett, 1999. "Do Male Dropouts Benefit from Obtaining a GED, Postsecondary Education, and Training?," Evaluation Review, , vol. 23(5), pages 475-503, October.
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    Cited by:

    1. Christopher Jepsen & Peter Mueser & Kenneth Troske, 2017. "Second Chance for High School Dropouts? A Regression Discontinuity Analysis of Postsecondary Educational Returns to the GED," Journal of Labor Economics, University of Chicago Press, vol. 35(S1), pages 273-304.
    2. Tyler, John & Lofstrom, Magnus, 2010. "Is the GED an effective route to postsecondary education for school dropouts?," Economics of Education Review, Elsevier, vol. 29(5), pages 813-825, October.

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