So You Want a GED? - Estimating the Impact of the GED on the Earnings of Dropouts Who Seek the Credential - NCSALL Research Brief

Sep 14, 2026

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Examines the impact of the General Educational Development (GED) credential on earnings among high school dropouts seeking the credential. Uses a Florida-linked dataset combining GED test information with quarterly earnings records from the state unemployment insurance system, covering 81,170 individuals. Reports that earning a GED increases quarterly earnings growth, raises the probability of non-zero earnings, and that higher GED test scores correspond to higher earnings. Finds earnings returns are similar across groups for credentials earned outside prison, but much smaller for those earned while incarcerated, with effects emerging over time.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages5

Reading Time13 min

AccessFree to download

NCSALL Research Brief

Earning a GED in Prison Decreases its Impact

Key Findings

Earning a GED Increases Earnings

ED 471978 AUTHOR TITLE INSTITUTION SPONS AGENCY PUB DATE NOTE CONTRACT AVAILABLE FROM PUB TYPE EDRS PRICE DESCRIPTORS IDENTIFIERS ABSTRACT DOCUMENT RESUME Tyler,John H. So You Want a GED?Estimating the Impact of the GED on theEarnings of Dropouts Who Seek the Credential.NCSALL ResearchBrief. National Center for the Study of Adult Learning and Literacy,Boston,MA. National Inst.on Postsecondary Education,Libraries,andLifelong Learning(ED/OERI),Washington,DC. 2002-00-00 4p. R309B60002 For full text:http://ncsall.gse.harvard.edu/ research/brief_tyler2.pdf. Information Analyses(070) EDRS Price MF01/PC01 Plus Postage. Adult Basic Education;Adult Literacy;Blacks;CorrectionalEducation;*Dropouts;Economic Impact;Educational Policy;Educational Practices;Educational Research;*Estimation(Mathematics);*High School Equivalency Programs;LiteracyEducation;*Measurement Techniques;Minority Groups;Nontraditional Education;Outcomes of Education;*ResearchMethodology;*Salary Wage Differentials;UnemploymentInsurance;Whites Florida;*General Educational Development Tests;ImpactStudies;Return on Investment The impact of the General Educational Development certificate(GED)on the earnings of high school dropouts who seek the credential wereestimated.The estimates were derived by using several different types ofestimation methods to analyze data linking Florida GED test information withquarterly earnings records collected by Florida's Unemployment Insurancesystem.The study data set included basic demographics,quarterly earnings,and GED test scores of 81,170 individuals.Key findings were as follows:(1)acquiring a GED leads to greater quarterly earnings growth;(2)earning a GEDincreases the probability of having non-zero earnings;(3)higher scores onGED tests lead to higher earnings;(4)the economic return on the GED isapproximately the same for whites and minority group members earning thecredential outside prison,but it is relatively large for whites and muchsmaller.for minority group members earning the credential while incarcerated.The following were among the study's implications:(1)substantial GED-related earnings differences occur over time rather than immediately;(2)therelatively large numbers of young black high school dropouts who obtain GEDsin prison appears to explain the GED's lesser economic impact for minoritygroup members;and(3)acquiring a GED only partially tempers the harsheconomic realities for high school dropouts.(MN) Reproductions supplied by EDRS are the best that can be madefrom the original document. ED 471978 68E力803 ERIC EC So You Want a GED?Estimatingthe Impact of the GED on theEarnings of Dropouts Who Seekthe Credential # NCSALL Research Brief U.S.DEPARTMENT OF EDUCATIONorice o Educationai RaSearch and 1mprovementEDUCATIONALBESOURCES INFORMATIONCENTER(ERIC This document has been reproduced asreceived trom the person or organizationoriginating it □ Minor changes have been made toimprove reproduction quality Pontsofview or oninions 5tated in thidocument do not necessarily represenofficial OERI position or policy 2 # So You Want a GED?Estimating the Impact of the GED on theEarnings of Droputs Who Seek the Credential A NCSALL Research BriefJohn H.Tyler or high school dropouts,earning a GED leads to faster earnings growth,according to this study of GED[tests of general educational development]and employment data from the state of Florida simply be a part of a general upward trend in relative employmentfor successful candidates that started before they attempted theGED tests.However,estimates indicate that acquiring a GEDtranslates into about a four percentage point greater probabilityof having non-zero earnings by the 17ᵗquarter after receivingthe credential. This research estimates the impact of the GED on the earnings ofhigh school dropouts who seek the credential,using a unique dataset and employing several different types of estimation methods.Alt

FAQs

What does the study estimate about the GED’s effect on earnings?

It estimates how earning a GED affects quarterly earnings growth and the likelihood of having non-zero earnings after receiving the credential.

How is the study dataset constructed?

It links Florida GED test information with quarterly earnings records from Florida’s unemployment insurance system, producing data on demographics, quarterly earnings, and GED test scores for 81,170 individuals.

Do the study findings differ for GEDs earned in prison versus outside prison?

Yes. The economic return is approximately similar for whites and minorities when earned outside prison, but it is relatively large for whites and much smaller for minorities when earned while incarcerated.

Sep 14, 2026

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