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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," Journal of Political Economy, University of Chicago Press, vol. 124(3), pages 621-649.
    • Handle: RePEc:ucp:jpolec:doi:10.1086/686245
    DOI: 10.1086/686245
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    More about this item

    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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