Taking the Easy Way Out: How the GED Testing Program Induces Students to Drop Out
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NBER Working Paper No. 14044
Issued in May 2008
NBER Program(s): ED
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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This paper was revised on December 5, 2011 Acknowledgments
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