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Labor-Market Returns to the GED Using Regression Discontinuity Analysis

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Listed:
  • Christopher Jepsen
  • Peter Mueser
  • Kenneth Troske

Abstract

We evaluate returns to General Educational Development (GED) certification for high school dropouts using state administrative data. We apply a fuzzy regression discontinuity method to account for test takers retaking the test. For women we find that GED certification has no statistically significant effect on either employment or earnings. For men we find a significant increase in earnings in the second year after taking the test but no impact in subsequent years. GED certification increases postsecondary school enrollment by 4–8 percentage points. Our results differ from regression discontinuity approaches that fail to account for test retaking.

Suggested Citation

  • Christopher Jepsen & Peter Mueser & Kenneth Troske, 2016. "Labor-Market Returns to the GED Using Regression Discontinuity Analysis," Open Access publications 10197/7729, School of Economics, University College Dublin.
    • Handle: RePEc:ucn:oapubs:10197/7729
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    1. Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), 2011. "Handbook of the Economics of Education," Handbook of the Economics of Education, Elsevier, edition 1, volume 4, number 4, June.
    2. 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.
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    14. Christopher Jepsen & Peter Mueser & Kenneth Troske, 2015. "Second Chance for High-School Dropouts? A Regression Discontinuity Analysis of Postsecondary Educational Returns to General Educational Development Certification," Open Access publications 10197/6648, School of Economics, University College Dublin.
    15. James J. Heckman & John Eric Humphries & Paul A. LaFontaine & Pedro L. Rodríguez, 2012. "Taking the Easy Way Out: How the GED Testing Program Induces Students to Drop Out," Journal of Labor Economics, University of Chicago Press, vol. 30(3), pages 495-520.
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    More about this item

    Keywords

    General educational development (GED) tests; Postsecondary education;

    JEL classification:

    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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