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Labor-Market Returns to the GED Using Regression Discontinuity Analysis

Author

Listed:
  • Jepsen, Christopher

    (University College Dublin)

  • Mueser, Peter R.

    (University of Missouri, Columbia)

  • Troske, Kenneth

    (University of Kentucky)

Abstract

We evaluate the labor-market returns to General Educational Development (GED) certification using state administrative data. We develop a fuzzy regression discontinuity (FRD) method to account for the fact that GED test takers can repeatedly retake the test until they pass it. Our technique can be applied to other situations where program participation is determined by a score on a "retake-able" test. Previous regression discontinuity estimates of the returns to GED certification have not accounted for retaking behavior, so these estimates may be biased. We find that the effect of GED certification on either employment or earnings is not statistically significant. GED certification increases postsecondary participation by up to four percentage points for men and up to eight percentage points for women.

Suggested Citation

  • Jepsen, Christopher & Mueser, Peter R. & Troske, Kenneth, 2012. "Labor-Market Returns to the GED Using Regression Discontinuity Analysis," IZA Discussion Papers 6758, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp6758
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    References listed on IDEAS

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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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    More about this item

    Keywords

    high school dropouts; GED;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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