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Title: Human Capital Effect of the GED on Low Income Women
Resulting in 1 citation.
1. Cao, Jian
Stromsdorfer, Ernst W.
Weeks, Gregory
Human Capital Effect of the GED on Low Income Women
Working Paper, Department of Economics and Social and Economical Sciences Research Center, Washington State University, 1995
Cohort(s): Children of the NLSY79, NLSY79
Publisher: Department of Economics, Washington State University
Keyword(s): Armed Forces Qualifications Test (AFQT); Dropouts; Endogeneity; Family Income; GED/General Educational Diploma/General Equivalency Degree/General Educational Development; Labor Market Outcomes; Wage Gap; Welfare

Earlier versions of this paper were presented at the 1992 American Public Policy and Management Association annual meetings and the 68th Western Economic Association annual meetings in 1993. This study examines the impacts of the GED and other secondary and post-secondary credentials on labor market outcomes for women using data from the NLSY Mother and Children file and the Washington State Family Income Study. Correcting for sample selection and endogeneity bias of welfare recipiency, we find that one cannot distinguish between secondary dropouts, GED recipients, and secondary graduates in hours of work. Results on hourly wage rates are mixed. For the FIS sample, GED recipients, secondary graduates and secondary dropouts earn the same wage. For the NLSY, GED recipients fare better than dropouts, but worse than secondary graduates. Job experience explains the wage gap between GED recipients and graduates, but its explanatory power is dominated by controlling for years of education or AFQT. Differences in years of education and AFQT scores are responsible for the observed wage differences among the GED recipients, secondary graduates and secondary dropouts.
Bibliography Citation
Cao, Jian, Ernst W. Stromsdorfer and Gregory Weeks. "Human Capital Effect of the GED on Low Income Women." Working Paper, Department of Economics and Social and Economical Sciences Research Center, Washington State University, 1995.