published in: Journal of Labor Economics, 2012, 30 (3), 495-520
The option to obtain a General Education Development (GED) certificate changes the incentives facing high school students. This paper evaluates the effect of three different GED policy innovations on high school graduation rates. A six point decrease in the GED pass rate due to an increase in national passing standards produced a 1.3 point decline in overall high school dropout rates. The introduction of a GED certification program in high schools in Oregon produced a four percent decrease in high school graduation rates. Introduction of GED certificates for civilians in California increased the high school dropout rate by 3 points. The GED program induces students to drop out of high school.
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