THE HUMAN-CAPITAL EFFECT OF GENERAL-EDUCATION DEVELOPMENT CERTIFICATES ON LOW-INCOME WOMEN

This study examines the impacts of the General Equivalency Diploma (GE D) certificate and other secondary and post-secondary credentials on l abor market outcomes for women. It uses data from the NLSY Mother and Children pie and the Washington State Family Income Study (FIS). Corre cting for sample selection and endogeneity bias of welfare recipiency, we find that one cannot distinguish between secondary dropouts, GED r ecipients, and secondary graduates in hours of work. Results on hourly wage rates are mixed. For the FIS sample, GED recipients, secondary g raduates, and secondary dropouts earn the same wage. For the NLSY, GED recipients fare better than dropouts, but worse than secondary gradua tes. Job experience explains the wage gap between GED recipients and g raduates, but its explanatory power is dominated by controlling for re ars of education or AFQT. Differences in years of education and AFQT s cores are responsible for the observed wage differences among GED reci pients, secondary graduates, and secondary dropouts.