[NIFL-FOBASICS:1352] Research on GED Earnings

From: David Rosen (djrosen@comcast.net)
Date: Wed Mar 30 2005 - 11:05:23 EST


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From: David Rosen <djrosen@comcast.net>
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Subject: [NIFL-FOBASICS:1352] Research on GED Earnings
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NIFL-Focus on Basics Colleagues,

GED holder earnings is an area where we have some good research, based 
on employer-reported data on earnings for large numbers of GED holders 
in several states.  I think this research should inform what we counsel 
students.

Brown University researcher, John Tyler,  has found that:

1. Economic benefits to the GED (without postsecondary education) 
accrue only to dropouts who leave school with very low levels of basic 
skills. Although the increased earnings may be as high as 15%, this is 
usually 15% of a low wage or salary, so this is far from a ticket out 
of poverty. There are _no earnings differences_ between high-skilled 
dropouts with and without a GED unless they go on for post-secondary 
education.

2. The biggest payoffs of a GED occur for those who use it to access 
post-secondary education, but very few  GED holders do this.  (I think 
Tyler said under 5%, but I'll have to check that.)  However, if they do 
complete a degree program, the earnings differences between high school 
diploma holders who go on to college and GED holders disappear.

3. It takes up to five years for measurable earnings differences to 
appear.  The primary mechanism for increased earnings is moving from 
non-employment to employment.

4. Preliminary results show no impact on post-release earnings for 
white male offenders who obtain a GED while in prison.

As i interpret these findings, the overall message for school dropouts 
who are considering getting a GED in order to increase their earnings 
should be: get the basic skills you need to succeed in college and go 
on for post-secondary education if you want to earn more than poverty 
wages. If the GED is part of that plan, because a GED is required to 
enter college in your state, then get the GED,  or an adult diploma.  
But don't stop there, go on.

Reference:

NCSALL GED Research Briefs

http://gseweb.harvard.edu/~ncsall/research/repbriefs.htm

David J. Rosen
djrosen@comcast.net



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