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Estimating The Labor Market Signaling Value Of The GED

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Author Info
John H. Tyler
Richard J. Murnane
John B. Willett

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Abstract

This paper tests the labor market signaling hypothesis for the General Educational Development (GED) equivalency credential. Using a unique data set containing GED test scores and Social Security Administration (SSA) earnings data, we exploit variation in GED status generated by differential state GED passing standards to identify the signaling value of the GED, net of human capital effects. Our results indicate that the GED signal increases the earnings of young white dropouts by 10 to 19 percent. We find no statistically significant effects for minority dropouts. © 2000 the President and Fellows of Harvard College and the Massachusetts Institute of Technology

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Publisher Info
Article provided by MIT Press in its journal The Quarterly Journal of Economics.

Volume (Year): 115 (2000)
Issue (Month): 2 (May)
Pages: 431-468
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Handle: RePEc:tpr:qjecon:v:115:y:2000:i:2:p:431-468

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  1. Melissa Clark & David Jaeger, 2006. "Natives, the foreign-born and high school equivalents: new evidence on the returns to the GED," Journal of Population Economics, Springer, vol. 19(4), pages 769-793, October. [Downloadable!] (restricted)
    Other versions:
  2. Kenneth Y. Chay & Patrick J. McEwan & Miguel Urquiola, 2003. "The Central Role of Noise in Evaluating Interventions that Use Test Scores to Rank Schools," NBER Working Papers 10118, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. John H. Tyler & Jeffrey R. Kling, 2004. "Prison-Based Education And Re-Entry Into The Mainstream Labor Market," Working Papers 2004-10, Brown University, Department of Economics. [Downloadable!]
    Other versions:
  4. Uschi Backes-Gellner & Stephan Veen, 2006. "Incentives for Schools, Educational Signals and Labour Market Outcomes," Working Papers 0061, University of Zurich, Institute for Strategy and Business Economics (ISU), revised Jun 2006. [Downloadable!]
    Other versions:
  5. David M. Cutler & Adriana Lleras-Muney, 2006. "Education and Health: Evaluating Theories and Evidence," NBER Working Papers 12352, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Tali Regev, 2007. "Imperfect information, self-selection and the market for higher education," Working Paper Series 2007-18, Federal Reserve Bank of San Francisco. [Downloadable!]
  7. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2006. "Enhancing the Power of Household Panel Studies: The Case of the German Socio-Economic Panel Study (SOEP) ; Paper Prepared for the StatCan-Conference "Longitudinal Social Surveys in an Internation," Data Documentation 13, DIW Berlin, German Institute for Economic Research. [Downloadable!]
  8. Eric A. Hanushek & Lei Zhang, 2006. "Quality-Consistent Estimates of International Returns to Skill," NBER Working Papers 12664, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Tyler, John & Lofstrom, Magnus, 2008. "Is the GED an Effective Route to Postsecondary Education for School Dropouts?," IZA Discussion Papers 3297, Institute for the Study of Labor (IZA). [Downloadable!]
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  10. Lofstrom, Magnus & Tyler, John, 2004. "Measuring the Returns to the GED: Using an Exogenous Change in GED Passing Standards as a Natural Experiment," IZA Discussion Papers 1306, Institute for the Study of Labor (IZA). [Downloadable!]
  11. John Heywood & Xiangdong Wei, 2004. "Education and Signaling: Evidence from a Highly Competitive Labor Market," Education Economics, Taylor and Francis Journals, vol. 12(1), pages 1-16, April. [Downloadable!] (restricted)
  12. Marcel Fafchamps & Måns Söderbom, 2004. "Wages and Labor Management in African Manufacturing," Development and Comp Systems 0409043, EconWPA. [Downloadable!]
    Other versions:
  13. repec:fth:prinin:462 is not listed on IDEAS
  14. Sullivan, Paul, 2006. "A Dynamic Analysis of Educational Attainment, Occupational Choices, and Job Search," MPRA Paper 3896, University Library of Munich, Germany, revised Jun 2007. [Downloadable!]
    Other versions:
  15. Farrell Bloch & Sharon P. Smith, 1975. "Human Capital and Labor Market Employment," Working Papers 462, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
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