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Who Benefits from Obtaining a GED? Evidence from High School and Beyond

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

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Abstract


This paper examines the value of the GED credential and the conventional high school diploma in explaining the earnings of 27-year-old males in the early 1990s. The data base is the High School and Beyond sophomore cohort.
We replicate the basic findings of prior studies that implicitly assume the labor market value of the GED credential does not depend on the skills with which dropouts left school. We show that these average effects mask a more complicated pattern. Obtaining a GED is associated with higher earnings at age 27 for those male dropouts who had very weak cognitive skills as tenth graders, but not for those who had stronger cognitive skills as tenth graders. © 2000 by 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 Review of Economics and Statistics.

Volume (Year): 82 (2000)
Issue (Month): 1 (February)
Pages: 23-37
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Handle: RePEc:tpr:restat:v:82:y:2000:i:1:p:23-37

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Web page: http://mitpress.mit.edu/journals/

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. McKinley L. Blackburn & David E. Bloom & Richard B. Freeman, 1989. "The Declining Economic Position of Less-Skilled American Males," NBER Working Papers 3186, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Stephen V. Cameron & James J. Heckman, 1993. "Determinants of Young Male Schooling and Training Choices," NBER Working Papers 4327, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. 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. [Downloadable!] (restricted)
  4. Robert H. Meyer & David A. Wise, 1982. "High School Preparation and Early Labor Force Experience," NBER Chapters, in: The Youth Labor Market Problem: Its Nature, Causes, and Consequences, pages 277-348 National Bureau of Economic Research, Inc. [Downloadable!]
    Other versions:
  5. Cameron, Stephen V & Heckman, James J, 1993. "The Nonequivalence of High School Equivalents," Journal of Labor Economics, University of Chicago Press, vol. 11(1), pages 1-47, January. [Downloadable!] (restricted)
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  6. John H. Tyler & Richard J. Murnane & John B. Willett, 1998. "Estimating the Impact of the GED on the Earnings of Young Dropouts Using a Series of Natural Experiments," NBER Working Papers 6391, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. Neal, Derek A & Johnson, William R, 1996. "The Role of Premarket Factors in Black-White Wage Differences," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 869-95, October. [Downloadable!] (restricted)
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  8. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June. [Downloadable!] (restricted)
  9. repec:fth:coluec:452 is not listed on IDEAS
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. 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:
  2. Melissa A. Clark & David Jaeger, 2002. "Natives, the Foreign-Born and High School Equivalents: New Evidence on the Returns to the GED," Working Papers 841, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
    Other versions:
  3. 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!]
  4. Katharine L. Bradbury, 2002. "Education and wages in the 1980s and 1990s: are all groups moving up together?," New England Economic Review, Federal Reserve Bank of Boston, issue Q 1, pages 19 - 46. [Downloadable!]
  5. Jim Taylor & Anh Ngoc Nguyen, 2003. "Transition from school to first job: the influence of educational attainment," Working Papers 000060, Lancaster University Management School, Economics Department. [Downloadable!]
  6. Magnus Lofstrom & John Tyler, 2007. "Modeling the Signaling Value of the GED with an Application to an Exogenous Passing Standard Increase in Texas," IZA Discussion Papers 2953, Institute for the Study of Labor (IZA). [Downloadable!]
  7. 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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