WHAT IS THE VALUE OF THE GED TO DROPOUTS WHO PURSUE THE CREDENTIAL ?

What is the Value of the GED to Dropouts Who Pursue the Credential? This paper uses a unique data set constructed from Florida GED and Unemployment Insurance (UI) administrative records to estimate the impact of the GED on the UI quarterly earnings of male high school dropouts who seek the credential. Estimates from several different specifications all indicate that acquisition of a GED leads to greater quarterly earnings growth among male dropouts who attempt to obtain a GED. Estimated earnings differences between credentialed and uncredentialed GED candidates grow from zero immediately after the GED attempt to 13−20 percent six years after the attempt. The evidence is that the bulk of these quarterly earnings gains are the result of GED-related movement from non-employment to employment. J.E.L Classifications: I21 (Analysis of Education) and J24 (Human Capital Formation)

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