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DISCUSSION PAPER SERIES Forschungsinstitut zur Zukunft der Arbeit Institute for the Study of Labor Taking the Easy Way Out: How the GED Testing Program Induces Students to Drop Out IZA DP No. 3495 James J. Heckman John Eric Humphries Paul A. LaFontaine Pedro L. Rodríguez May 2008 (updated May 2011)

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Page 1: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

DI

SC

US

SI

ON

P

AP

ER

S

ER

IE

S

Forschungsinstitut zur Zukunft der ArbeitInstitute for the Study of Labor

Taking the Easy Way Out: How the GED Testing Program Induces Students to Drop Out

IZA DP No. 3495

James J. HeckmanJohn Eric HumphriesPaul A. LaFontainePedro L. Rodríguez

May 2008(updated May 2011)

Page 2: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Taking the Easy Way Out: How the GED Testing Program Induces Students to Drop Out

James J. Heckman University of Chicago, American Bar Foundation,

University College Dublin and IZA

John Eric Humphries

University of Chicago

Paul A. LaFontaine American Bar Foundation

Pedro L. Rodríguez

IESA, Venezuela

Discussion Paper No. 3495 May 2008

*** updated May 2011 ***

IZA

P.O. Box 7240 53072 Bonn

Germany

Phone: +49-228-3894-0 Fax: +49-228-3894-180

E-mail: [email protected]

Any opinions expressed here are those of the author(s) and not those of IZA. Research published in this series may include views on policy, but the institute itself takes no institutional policy positions. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post World Net. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author.

Page 3: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

IZA Discussion Paper No. 3495 May 2008 (updated May 2011)

ABSTRACT

Taking the Easy Way Out: How the GED Testing Program Induces Students to Drop Out* 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. JEL Classification: C61 Keywords: GED, dropout Corresponding author: James J. Heckman Department of Economics University of Chicago 1126 East 59th Street Chicago, IL 60637 USA E-mail: [email protected]

* This research was supported by the American Bar Foundation, NIH R01-HD043411, the Spencer Foundation, the Mellon Foundation, the JB and MK Pritzker Family Foundation, the Buffett Early Childhood Fund at the Susan T. Buffett Foundation, and an anonymous foundation. We would like to thank the California Demographic Research unit for helpful assistance. We thank the editor and an anonymous referee for helpful comments. We also thank participants at the Spencer Foundation GED Conference at the University of Chicago, April 2011, for helpful comments. Tim Kautz, Janice Laurence, Lois Quinn, Chris Taber and Rob Warren gave especially helpful commentary. The views expressed in this paper are those of the authors and not necessarily those of the funders listed here. A Web Appendix is available at http://jenni.uchicago.edu/GED_dropout/GED_incentives/

Page 4: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

1 Introduction

This paper examines how changes in the availability and difficulty of the General Education

Development (GED) test affect high school dropout rates. GED certification allows dropouts

to earn a state-issued GED credential.

GED credentials account for approximately 12% of high school credentials issued in the

U.S. in 2008 (Figure 1). Test takers are required to pass a five part, 7.5 hour test to

certify their high school equivalence and earn a state-issued GED credential. Obtaining a

GED is easier for most students than graduating in the traditional fashion. The option

may be especially attractive for cognitively able students who lack credits or face other

challenges. The median study time of GED test takers that study is 32 hours (Zhang, Han,

and Patterson, 2009a).1 In the early years of the test, the minimum passing score was low

and on some sub-tests, passing scores were only slightly above what could be achieved by

chance (Quinn, 1997).

A large literature documents the small average labor market returns to GED certifi-

cation.2 Few papers have addressed whether the availability of the GED option induces

students to drop out of school rather than graduate. Chaplin (1999) and Lillard (2001)

estimate the effect of the availability of the GED on high school continuation and dropout

rates by exploiting cross-state variation in GED testing policies over time. Controlling for

state, year and age fixed effects, both studies find that state GED policies are statistically

significant predictors of high school dropout rates. Policies that provide exemptions to age

restrictions for GED testing or lower passing standards promote dropping out of high school.

States with lower requirements for the GED have higher GED test-taking rates.

The endogeneity of cross-state variation in GED requirements is a potential problem with

the identification strategy employed in previous studies. If states change GED requirements

1We do not know the amount of time spent studying by those who pass the exam. Data from 1989 (Boeselet al., 1998) shows that 56% of people reported studying 40 hours or less and 24% reported studying over100 hours. Classroom attendance for a typical school year is over 1000 hours per year, and most GEDs area year or more below twelfth grade when they drop out of school.

2See Heckman, Humphries, and Mader (2011) for a review of the literature.

2

Page 5: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

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ure

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Page 6: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

in response to trends in state-level dropout rates, estimates of the GED effect will be bi-

ased. States might respond to increased dropout rates by lowering the GED requirements.

Estimates that do not account for this response would tend to overstate the effect of lower

passing standards.

This paper presents three studies of the incentive effects of the GED program. The first

study uses an identification strategy based on a nationally mandated change in GED passing

standards imposed in 1997 by the GED Testing Service. All states were required to meet

new minimum and mean score requirements. This national mandate forced some states to

raise passing standards while other states were unaffected. This strategy addresses the endo-

geneity problem because the timing and magnitude of the one-time change in requirements

is exogenous to any state-specific trends or policy changes.

Students react strongly to the change in the difficulty of the GED test. Difference-in-

difference estimates show that a 6 percentage point decrease in the probability of passing

the GED causes a statistically significant 1.3 percentage point decline in the overall dropout

rate. The policy has its greatest effect on older students who are less restricted in their

GED testing and school leaving decisions. The percentage of students enrolled in the 12th

grade who do not graduate declines by 3 points more in states that were required to raise

GED requirements compared to those that were not required to do so. GED policy changes

have larger effects on minorities because at any grade they tend to be older and hence less

subject to minimum school leaving age requirements. They are also more likely to be behind

majority students in meeting graduation requirements.

In a second study, we examine the effect of introducing the “GED Option Program” in

Oregon. First introduced in 2001, these programs offer GED preparation and certification

in high schools. They target students perceived to be at risk of dropping out of high school

and guide them into GED certification. The program substantially reduces high school

graduation rates. Using panel data, we show that such programs lower high school graduation

rates in Oregon by 4%.

4

Page 7: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

In a third study, we examine the impact of introducing the GED in California. In 1974,

California became the last state to award a high school equivalency credential to civilians who

passed the GED exam.3 Prior to recognizing the GED, California had higher graduation rates

than other states in the U.S. After adopting the GED program, California graduation rates

quickly fell to levels similar to those in other states. Difference-in-difference estimates show

that high school graduation rates fell by 3 percentage points more in California compared

to the rest of the U.S.

Our findings are consistent with previous studies that show that the GED induces youth

to drop out of school. We expand upon previous studies by showing that minorities and

males are more strongly affected by GED policy changes. We provide the first empirical

estimate of the effect of introducing the GED program on high school graduation rates.

The paper proceeds as follows. Section two presents a background discussion of the

relationship between GED policies and dropout rates. Section three analyzes the impact

of the 1997 GED policy change on the dropout rate. Section four estimates the effect on

the dropout rate of introducing the GED as an option for at risk high school students in

Oregon. Section five estimates the effect of introducing the GED program for civilians on

California dropout rates. Section six concludes with a discussion of our main findings and

their implications for policy.

2 Evidence on the Effects of GED Policies and Incen-

tives

The GED Testing Service (GEDTS) promotes its credential as being equivalent to a tradi-

tional high school diploma (Quinn, 1997). A recent NCES study shows that many people

view the GED credentials as an attractive alternative to graduating from high school. The

Education Longitudinal Study (ELS) follows a representative sample of 10th graders enrolled

3Prior to 1974, the GED program in California was restricted to veterans and military personnel.

5

Page 8: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

in the spring of 2002 through graduation and beyond. In the spring of 2004, over 40% of

dropouts stated that they did not complete high school because they “thought it would be

easier to get a GED.” This was the second most cited reason behind “missed too many school

days” (43.5%). It also placed far above what are commonly believed to be primary reasons

for dropping out of school such as pregnancy (27.8%), work (27.8%) and marriage (6.8%)

(Table 1).4

There is a close relationship between trends in GED testing among school age youth and

the national dropout rate. Figure 2 plots the dropout rate both including and excluding

GED recipients as graduates. It also plots the percentage of GED test takers ages nineteen

or under in each year. Increases in the fraction of students who choose not to complete high

school are associated with rising GED test taking among secondary school-age youth. The

two time series move together in response to national GED policy changes. When GED

age requirements are lowered, GED testing rates increase for the young along with dropout

rates. When standards are increased, dropout rates fall and GED test taking by the young

declines.

The dropout rate that classifies GED recipients as dropouts reached historic lows in the

early 1970s and rose afterward (Heckman and LaFontaine, 2010). In contrast, the dropout

rate that counts GEDs as high school graduates, steadily declines over the entire period.

In the first few years depicted, the two measures are nearly equal. They begin to diverge

sharply after 1970, coinciding with the rapid expansion of the GED testing program shown

in Figure 1.

Expansion of the GED testing program is associated with a number of important policy

changes that made the GED more accessible to school-age youth. During the early 1970s,

states began to eliminate age restrictions on GED testing in an attempt to make GED cre-

dentials more accessible to young dropouts (Quinn, 1997). Previously, most states required

that individuals be at least 20 years old in order to take the GED. Additionally, in 1970 Adult

4Answers are not mutually exclusive and therefore percentages do not sum to one hundred.

6

Page 9: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Table 1: Percentage of Spring 2002 HS sophomores who had not Completed a HS Degree bySpring 2004, by Reason for Leaving School

Reason for leaving school Percent

Missed too many school days 43.5

Thought it would be easier to get GED 40.5

Getting poor grades/failing school 38.0

Did not like school 36.6

Could not keep up with schoolwork 32.1

Became pregnant* 27.8

Got a job 27.8

Thought could not complete course requirements 25.6

Could not get along with teachers 25.0

Could not work at same time 21.7

Had to support family 20.0

Did not feel belonged there 19.9

Could not get along with other students 18.7

Was suspended from school 16.9

Had to care for a member of family 15.5

Became father/mother of a baby 14.4

Had changed schools and did not like new one 11.2

Thought would fail competency test 10.5

Did not feel safe 10.0

Was expelled from school 9.9

Got married/planned to get married 6.8

Table 2. Percentage of Spring 2002 HS sophomores who had not

Completed a HS Degree by Spring 2004, by Reason for Leaving School

Note: This indicator shows the percentage of high school students in the spring

of their sophomore year who, in the spring 2 years later, were not in school and

had not graduated with a regular diploma or certificate of attendance. The 1

percent of sophomores who left school and earned a General Educational

Development (GED) certificate or other form of equivalency certificate as of

the spring 2 years later are counted as having left school without a regular

diploma or certificate of attendance.

Source: Reproduced from U.S. Department of Education, National Center for

Education Statistics, Education Longitudinal Study of 2002 (ELS:2002/04),

“First Follow-up, Student Survey, 2004,” previously unpublished tabulation

(January 2006).

*Percentage of female respondents only. The reason could only be selected by

female respondents.

Note: This indicator shows the percentage of high school students in the spring of their sophomore year who, in the spring 2years later, were not in school and had not graduated with a regular diploma or certificate of attendance. The 1 percent ofsophomores who left school and earned a General Educational Development (GED) certificate or other form of equivalency

certificate as of the spring 2 years later are counted as having left school without a regular diploma or certificate of attendance.Source: Reproduced from U.S. Department of Education, National Center for Education Statistics, Education LongitudinalStudy of 2002 (ELS:2002/04), “First Follow-up, Student Survey, 2004,” previously unpublished tabulation (January 2006).

∗Percentage of female respondents only. The reason could only be selected by female respondents.

7

Page 10: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Fig

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8

Page 11: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Education (AE) programs began targeting younger populations by lowering the minimum

age requirement for participation from 18 to 16 (Heckman, Humphries, and Mader, 2011).

In the same year, Adult Secondary Education (ASE) programs were introduced targeting

those lacking secondary education. These programs produced many GED credentials. AE

programs issued 20% of GED credentials in 1972 and 40% by 1980 (Heckman, Humphries,

and Mader, 2011).

Following these changes, both the dropout rate and the percentage of young GED test

takers began to rise. Figure 3 shows that the average age of GED testing dropped precipi-

tously in the early 70s. The average age of GED test takers declined from 29 in 1970 to 25

in 1973.5 The average age has remained low since then except for a sharp increase in 1974

that coincides with the introduction of Pell grants financing higher education, which initially

required at least a GED to qualify.6

3 The Effect of the 1997 GED Policy Change

The survey and time series evidence suggests that GED test taking is related to youth

dropout behavior. Are the observed relationships causal? In the first of the three studies

reported in this paper, we address this question by exploiting exogenous variation in the

difficulty of passing the GED arising from a nationally mandated toughening of GED passing

score requirements in 1997. Prior to 1997, states fell into one of three groups: (1) 19 states

with a requirement of a minimum score of 40 on each sub-test and a mean score of 45 across

all sub-tests; (2) 26 states with a 35 minimum and 45 mean requirement and; (3) a group of

5 states where GED candidates had to achieve a 40 minimum on each test and/or a mean

score of 45 across all tests.

5Heckman and LaFontaine (2010) show that the baby boom and the subsequent baby bust accounts foronly a small portion of the variation in average age of GED test takers.

6The Federal Pell Grant Program provides need-based grants to low-income undergraduate and certainpost-baccalaureate students to promote access to postsecondary education. (U.S. Department of EducationWebsite, http://www.ed.gov/programs/fpg/index.html). The sharp rise in the average age in 1974 waspossibly due to a pent up demand for college among older dropouts.

9

Page 12: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Fig

ure

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est

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10

Page 13: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Starting January 1st 1997, all states had to meet the new standard of a minimum score

of 40 on each test and a mean score of 45. This standard forced the second group of states

to raise their minimum score requirement on each test from 35 to 40 and the third group of

states to eliminate the and/or scoring option. The first group of states that already met the

new standards did not change their requirements. Figure 4 shows the geographic distribution

of the states by category.

According to a norming study conducted by the American Council on Education, only

67% of graduating high school seniors are able to meet a minimum score requirement of 40

and a mean score requirement of 45. A minimum of 35 and a mean of 45 was obtained

by 70% and 75% scored at the 40 or mean of 45 threshold (Table 2). Thus, the change in

difficulty of passing the GED was far greater in the third group relative to the other two.

Observed changes in pass rates in the three types of states before and after 1997 reflect this

difference (See the far right-hand column of Table 2).

The third group of 5 states serves as our “treatment” group. The states that did not

change their standards serve as the “control” group.7 In our analysis, we compare GED

testing and dropout rates in treatment and control states in the years 1994-1996 to the

same rates measured in 1998-2000. We exclude 1997 from our empirical analysis because the

change in GED requirements occurred in the middle of the school year. The reform could

cause some students to drop out and take the GED early in the year and others to stay in

school after the requirements were changed later in the same year.

We compute three measures of annual dropout rates using the Common Core of Data

(CCD) and a methodology similar to that developed by Kominski (1990).8 The measures

are: (1) the overall dropout rate, defined as the percentage of students enrolled in the 10th,

7In the Web Appendix to this paper, we use as our control group the states that were required to minimallyraise the difficulty of obtaining a GED to test the exogeneity assumption. The results from this analysis areconsistent with the results reported in the text.

8The Common Core of Data (CCD) are collected from state departments of education and contain thenumber of students enrolled in each grade level in a given year in each state, as well as the number of highschool diplomas issued in that year. From these annual counts, approximate annual exit rates from eachgrade can be computed. See the Web Appendix for more details on the construction of these measures.

11

Page 14: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Fig

ure

4:Sta

tes

That

Wer

eR

equir

edto

Rai

seG

ED

Pas

sing

Sta

ndar

ds

in19

97

Sta

tes

that

wer

e re

quir

ed t

o e

limin

ate

the

and

/o

r sc

ore

op

tio

n (

trea

tmen

t gr

oup

).

Sta

tes

that

wer

e re

quir

ed t

o r

aise

th

e G

ED

min

imum

sco

re r

equir

emen

t fr

om

35 t

o 4

0.

Sta

tes

that

wer

e n

ot

requir

ed t

o r

aise

sta

nd

ard

s in

1997 (

con

tro

l gr

oup

).

So

urc

e: G

ED

Tes

tin

g Ser

vic

e: 2

001 G

ED

Sta

tist

ical

Rep

ort

.

Fig

ure

4.

Sta

tes

Th

at W

ere

Req

uir

ed t

o R

aise

GE

D P

assi

ng

Sta

nd

ard

s in

1997

Sou

rce:

GE

DT

esti

ng

Ser

vic

e:2001

GE

DS

tati

stic

al

Rep

ort

.

12

Page 15: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

le2:

Per

centa

geof

Hig

hSch

ool

Sen

iors

Mee

ting

Var

ious

GE

DSco

reR

equir

emen

tsan

dth

eA

ctual

Chan

gein

Pas

sR

ates

Pre

-an

dP

ost-

1997

GE

D S

core

Sta

nd

ard

Nu

mb

er o

f St

ates

P

rior

to

1997

C

han

ge

% o

f H

S Se

nio

rs

Mee

tin

g R

equ

irem

ents

*

Act

ual

C

han

ge in

P

ass

Rat

e**

Min

imum

40

or M

ean

455

73%

-7.4

3%

Min

imum

35

and

Mea

n 45

2669

%-1

.68%

Min

imum

40

and

Mea

n 45

1967

%-1

.26%

Sou

rce:

Th

ep

erce

nta

ge

of

hig

hsc

hool

sen

iors

inth

eG

ED

norm

ing

stu

dy

mee

tin

gth

egiv

ensc

ore

requ

irem

ent

isfr

om

the

1987

GE

Dst

ati

stic

al

rep

ort

.T

he

act

ual

chan

ge

in

pass

rate

sare

from

au

thors

’ca

lcu

lati

on

base

don

vari

ou

sG

ED

stati

stic

al

rep

ort

s.

∗G

ED

Norm

ing

stu

die

sare

base

don

the

per

form

an

ceof

are

pre

senta

tive

sam

ple

of

hig

hsc

hool

sen

iors

.D

epen

din

gon

thei

rp

erfo

rman

ceG

ED

score

sare

norm

alize

dto

ob

tain

an

orm

al

dis

trib

uti

on

of

mea

n50

an

dst

an

dard

dev

iati

on

10.

∗∗In

state

sth

at

wen

tfr

om

ind

icate

dre

qu

irem

ent

pre

-1997

toM

inim

um

40

an

dM

ean

45

post

-1997.

13

Page 16: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

11th and 12th grades in year t who are not enrolled and have not graduated in year t + 1;

(2) the lower level dropout rate, defined as the percentage of students enrolled in 10th and

11th grades in year t who are not enrolled in year t+1; and (3) the upper level dropout rate,

given by the percentage of students enrolled in 12th grade in year t who did not graduate in

year t + 1.9 These rates are yearly exit rates from school and therefore differ in levels from

more commonly reported cohort dropout rates (see, e.g., Heckman and LaFontaine, 2010).

All dropout rate calculations are then weighted by the fraction of the U.S. 15-17 year old

population that resides in each state for our sample period. Figure 5 plots our measures

of GED test taking and dropout rates by year in treatment and control states during our

sample period. 10

We define dropout rates this way for the following reasons. First, we need to compute

yearly exit rates from schooling to capture the timing of the school leaving decision before

and after the GED policy change. Second, we seek to examine whether there are differential

effects by grade and age.11 If students drop out to take the GED, we would expect to find

larger effects for students enrolled in upper grade levels since they are older and, as a group,

less restricted by compulsory schooling laws and GED testing age requirements. Third,

these measures are less sensitive to migration than estimated cohort rates at the state level

because they are defined over shorter intervals. Cohort dropout and graduation rates are

generally calculated using up to 5 year lags of enrollment and diploma counts (e.g. diplomas

issued in the spring of year t over fall 8th grade enrollment in year t-5). Our exit rates are

lagged one year and therefore less sensitive to migration.12 Finally, we do not include 9th

9The labels “overall”, “lower” and “upper” are our own and are not based on any official definitions. Allformulas used to compute each of the dropout rate measures are included in the Web Appendix.

10The plots by race are available in the Web Appendix. Data on GED testing by age is from the 1994-2000GED Statistical reports (See GED Testing Service, Various). Population totals by age are obtained fromthe Census bureau.

11The age of students is not available in CCD data so we use the grade level as a proxy measure.12A 1997 immigration reform generally made it more difficult to migrate and reside in the U.S. To test the

sensitivity of our Hispanic estimates to this reform, we compare Hispanic dropout rates in high immigrationcontrol states to the large estimates we find in treatment states. We find no significant declines in dropoutrates in these control states suggesting that bias due to migration is minimal. See the Web Appendix TableG-38 for this analysis.

14

Page 17: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Fig

ure

5:G

ED

Tes

ting

and

Dro

pou

tR

ates

by

Yea

r,T

reat

men

tvs.

Con

trol

Sta

tes

0123456Percentage

1994

1995

1996

1997

1998

1999

2000

Yea

r

Age

s 16−

17 T

reat

men

t Sta

tes

Age

s 18−

19 T

reat

men

t Sta

tes

Age

s 16−

17 C

ontro

l Sta

tes

Age

s 18−

19 C

ontro

l Sta

tes

(a) G

ED

Tes

ting

Rate

s by

Age

, 199

4−20

00

789101112Percentage

1994

1995

1996

1997

1998

1999

2000

Yea

r

Trea

tmen

t Sta

tes

Con

trol S

tate

s

(b) O

vera

ll 10

th−

12th

Gra

de D

ropo

ut R

ate,

199

4−20

00789101112

Percentage

1994

1995

1996

1997

1998

1999

2000

Yea

r

Trea

tmen

t Sta

tes

Con

trol S

tate

s

(c) O

vera

ll 10

th−

11th

Gra

de D

ropo

ut R

ate,

199

4−20

00

3456789101112Percentage

1994

1995

1996

1997

1998

1999

2000

Yea

r

Trea

tmen

t Sta

tes

Con

trol S

tate

s

(d) O

vera

ll 12

th G

rade

Dro

pout

Rat

e, 1

994−

2000

Not

e: G

ED

test

ting

rate

s are

cal

cula

ted

from

yea

rly G

ED

Sta

tistic

al R

epor

ts a

s the

per

ceta

nge

of th

e st

ate

popu

latio

n in

the

give

n ag

e ra

nge

who

take

the

GE

D in

that

yea

r.D

ropo

ut ra

tes a

re c

alcu

late

d fr

om th

e C

omm

on C

ore

of D

ata

(CC

D) a

s the

exi

t rat

e fo

r tho

se in

the

indi

cate

d gr

ades

in th

e gi

ven

year

. See

the

appe

ndix

for f

urth

er d

etai

ls.St

ates

requ

ired

to ra

ise G

ED

pas

s req

uire

men

ts (t

reat

men

t sta

tes)

are

: LA

, MS,

NE

, NM

, TX

. Sta

tes t

hat d

id n

ot c

hang

e pa

ss re

quire

men

ts (c

ontro

l sta

tes)

are

: AR,

CA

, CO

,D

E, D

C, F

L, ID

, KY

, MD

, MO

, NJ,

NY

, ND

, OK

, OR,

SD

, UT,

WA

, WV

, WI.

NJ i

s exc

lude

d in

all

drop

out c

alcu

latio

ns d

ue to

dat

a er

rors

.

Figu

re 5

.G

ED

Tes

ting

and

Dro

pout

Rat

es b

y Y

ear,

Trea

tmen

t vs.

Con

trol S

tate

s

Note

:G

ED

test

ing

rate

sare

calc

ula

ted

from

yea

rly

GE

DS

tati

stic

al

Rep

ort

sas

the

per

centa

ge

of

the

state

pop

ula

tion

inth

egiv

enage

ran

ge

wh

ota

ke

the

GE

Din

that

yea

r.

Dro

pou

tra

tes

are

calc

ula

ted

from

the

Com

mon

Core

of

Data

(CC

D)

as

the

exit

rate

for

those

inth

ein

dic

ate

dgra

des

inth

egiv

enyea

r.S

eeth

eW

ebA

pp

end

ixfo

rfu

rth

er

det

ails.

Sta

tes

requ

ired

tora

ise

GE

Dp

ass

requ

irem

ents

(tre

atm

ent

state

s)are

:L

A,

MS

,N

E,

NM

,T

X.

Sta

tes

that

did

not

chan

ge

pass

requ

irem

ents

(contr

ol

state

s)are

:A

R,

CA

,C

O,

DE

,D

C,

FL

,ID

,K

Y,

MD

,M

O,

NJ,

NY

,N

D,

OK

,O

R,

SD

,U

T,

WA

,W

V,

WI.

NJ

isex

clu

ded

inall

dro

pou

tca

lcu

lati

on

sd

ue

tod

ata

erro

rs.

15

Page 18: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

graders because high rates of retention at that grade make it difficult to calculate yearly exit

rates between that grade and 10th grade. Students enrolled in 9th grade are predominately

younger than 16 and therefore not allowed to take the GED test in any state.

Conley and Taber (2005) show that standard asymptotic results do not apply to many

difference-in-difference studies due to the small number of observed policy changes. They

develop a permutation test methodology that consistently estimates the asymptotic distri-

bution of the treatment effect under the null hypothesis of no treatment effect. Since our

sample is limited to only five states that were required to change GED testing policies, we

follow their methodology when computing our test statistics. We also report robust standard

errors clustered at the state level for purposes of comparison.

Figure 6 presents the average GED test taking rate by age pre- and post-1997. The

unadjusted mean difference-in-difference estimates and standard errors are also reported

for each age group at the top of the figure. For the control group, average GED testing

rates remained essentially flat over the two periods for all age groups. In contrast, treatment

group states exhibit a sharp decline in GED testing post-1997, especially for the older cohorts

(ages 18-19) that face fewer restrictions in both leaving school and taking the GED test. The

estimated change in the treatment group GED test taking rate for the older cohorts relative

to that of the control group is about 0.74 points and is statistically significant at the 5%

level. This is a 20% decline relative to the average GED test taking rate in treatment states

prior to the change. Also, before raising passing requirements, treatment group states had

much higher GED testing rates than did states in the control group. This difference in GED

testing levels is nearly eliminated once the treatment states increased their standards.

The overall dropout rates pre- and post-1997 across all races in both control and treatment

states are presented in Figure 7. Unadjusted difference-in-difference estimates and standard

errors are reported at the top of each set of figures. The overall dropout rate declines sharply

across all race groups in the treatment states, with the largest declines occurring for blacks

16

Page 19: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Fig

ure

6:A

vera

geP

re-

and

Pos

t-19

97G

ED

Tes

tT

akin

gR

ate

by

Age

Gro

up

2.0

%

1.4%

2.6

%

3.1

%

2.6

%

3.6

%

2.1

%

1.5%

2.7

%2.7

%2.5

%

2.9

%

0%

1%

2%

3%

4%

5%

GE

D T

est

Tak

ing

Ag

es

16-1

9G

ED

Test

Tak

ing

Ag

es

16-1

7G

ED

Test

Tak

ing

Ag

es

18-1

9

GED Test Taking RateF

igu

re 6

. A

vera

ge

Pre

-an

d P

ost

-1997 G

ED

Tes

t T

akin

g R

ate

by

Age

Gro

up

Co

ntr

ol G

roup

Pre

-97

Tre

atm

ent

Gro

up

Pre

-97

Co

ntr

ol G

roup

Po

st-9

7T

reat

men

t G

roup

Po

st-9

7

DiD

Est

imate

-0

.53%

(-1.

09%

, -

0.3

6%

)

No

te: G

ED

tes

t ta

kin

g ra

tes

are

def

ined

as

the

rati

o b

etw

een

to

tal n

um

ber

of

test

tak

ers

of

a gi

ven

age

an

d t

ota

l p

op

ula

tio

n o

f th

at a

ge. T

he

plo

t ab

ove

sho

ws

the

aver

age

GE

D t

est

takin

g ra

te f

or

the

per

iod

pre

-1997 (

i.e. 1994-1

996)

and

po

st-1

997 (

i.e. 1998-2

000).

A

ll es

tim

ates

are

wei

ghte

d b

y th

e15-1

7 y

ear

old

po

pula

tio

n b

y st

ate.

Co

nle

y-T

aber

ad

just

edco

nfi

den

ce i

nte

rval

s in

par

enth

eses

. T

he

trea

tmen

t gr

oup

co

nsi

sts

of

stat

es t

hat

wer

e re

quir

ed t

o e

limin

ate

the

and

/o

r sc

ore

op

tio

n. T

hes

e in

clud

e: L

A, M

S,

NE

, NM

, T

X. T

he

con

tro

l gr

oup

co

nsi

sts

of

stat

es t

hat

alr

ead

y h

ad h

igh

en

ough

sta

nd

ard

s b

y 1997. T

hes

e in

clud

e: A

R, C

A, C

O, D

E, D

C, F

L, ID

, K

Y, M

D, M

O, N

J, N

Y,

ND

, OK

, O

R, SD

, U

T, W

A, W

V, W

I. T

he

stat

e o

f N

J is

dro

pp

ed in

ord

er f

or

test

tak

ing

rate

s to

be

con

sist

ent

wit

h d

rop

out

rate

reg

ress

ion

s. S

ourc

e: G

ED

Tes

tin

g Ser

vic

e A

nn

ual

Rep

ort

s: "

Wh

o T

oo

k t

he

GE

D?"

(1994-2

000).

DiD

Est

imate

-

0.3

1%(-

1.14

%,

-0.1

2%

)

DiD

Est

imate

-

0.7

4%

(-1.

21%

, -

0.4

4%

)

Note

:G

ED

test

takin

gra

tes

are

defi

ned

as

the

rati

ob

etw

een

tota

lnu

mb

erof

test

taker

sof

agiv

enage

an

dto

tal

pop

ula

tion

of

that

age.

Th

ep

lot

ab

ove

show

sth

eaver

age

GE

D

test

takin

gra

tefo

rth

ep

erio

dp

re-1

997

(i.e

.1994-1

996)

an

dp

ost

-1997

(i.e

.1998-2

000).

All

esti

mate

sare

wei

ghte

dby

the

15-1

7yea

rold

pop

ula

tion

by

state

.C

on

ley-T

ab

er

ad

just

edco

nfi

den

cein

terv

als

inp

are

nth

eses

.T

he

trea

tmen

tgro

up

con

sist

sof

state

sth

at

wer

ere

qu

ired

toel

imin

ate

the

an

d/or

score

op

tion

.T

hes

ein

clu

de:

LA

,M

S,

NE

,N

M,

TX

.T

he

contr

ol

gro

up

con

sist

sof

state

sth

at

alr

ead

yh

ad

hig

hen

ou

gh

stan

dard

sby

1997.

Th

ese

incl

ud

e:A

R,

CA

,C

O,

DE

,D

C,

FL

,ID

,K

Y,

MD

,M

O,

NJ,

NY

,N

D,

OK

,O

R,

SD

,U

T,

WA

,W

V,

WI.

Th

est

ate

of

NJ

isd

rop

ped

inord

erfo

rte

stta

kin

gra

tes

tob

eco

nsi

sten

tw

ith

dro

pou

tra

tere

gre

ssio

ns.

Sou

rce:

GE

DT

esti

ng

Ser

vic

eA

nnu

al

Rep

ort

s:

“W

ho

Took

the

GE

D?”

(1994-2

000).

17

Page 20: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

and Hispanics.13 The estimated change in the 10th-12th grade dropout rate across all races

combined is -1.3% and is statistically significant at the 5% level. The effect for whites is

-0.5 percentage points whereas for blacks and Hispanics it is -0.9 and -1.7 percentage points

respectively.

In contrast, younger students did not drop out at higher rates, likely because they did not

meet the minimum age requirements for the GED (see Figure C-1 in the Web Appendix).

Dropout rates at lower levels decline in both treatment and control states for whites, blacks

and Hispanics but none of the difference-in-difference estimates are statistically significantly

different from zero.

The estimated effect of the GED testing reform on school dropout rates is also much

larger for older students (See Figure 8). The estimated change in the 12th grade dropout

rate across all race groups combined is 3.1 points and is statistically significant at the 5%

level. Again, we observe larger effects among minority students. Whereas the 12th grade

dropout for whites decreases by 1.4 points, black and Hispanic dropout rates decline by 4.4

and 7 points more in treatment states, respectively. Declines in the 12th grade dropout rate

account for nearly all of the decline in the overall dropout rate in states that increased GED

standards.

Students enrolled in lower grade levels in treatment states effectively provide a second

control group in our analysis. Most of the students in this group are not affected by changes

in GED requirements because they are too young to take the GED test without obtaining a

special exemption.14 The greater decline in dropout rates for older students suggests that the

relationship between students’ behavior and the reform does not stem from a confounding

factor that would affect all students (e.g. increased spending per pupil or number of teachers

per pupil).

13The estimates by race are not directly comparable with the “all races” category since the former includefewer states as a result of missing enrollment data by race. All estimates by race are restricted to the samesub-sample of states.

14Special exemptions to age requirements vary by state and include such conditions as teenage pregnancy,residence in a juvenile detention facility and enrollment in Job Corps programs. The 2006 GED StatisticalReport contains additional information on this topic. (See GED Testing Service, Various.)

18

Page 21: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Fig

ure

7:A

vera

geP

re-

and

Pos

t-19

9710

th-1

2th

Gra

de

Dro

pou

tR

ate

for

Tre

atm

ent

and

Con

trol

Gro

up

10.5

%

8.6

%

15.8

%

15.8

%

10.5

%

7.9

%

14.0

%

14.2

%

10.2

%

8.2

%

15.2

%

14.3

%

9.0

%

7.0

%

12.4

%

10.9

%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

All

Races

Wh

ites

Bla

ck

sH

isp

an

ics

Dropout RateF

igu

re 7

.A

vera

ge

Pre

-an

d P

ost

-1997 1

0th

-12th

Gra

de

Dro

po

ut

Rat

e fo

r T

reat

men

t an

d C

on

tro

l G

roup

Co

ntr

ol G

roup

Pre

-97

Tre

atm

ent

Gro

up

Pre

-97

Co

ntr

ol G

roup

Po

st-9

7T

reat

men

t G

roup

Po

st-9

7

No

te: T

he

dro

po

ut

rate

is

def

ined

as

the

rati

o o

f st

ud

ents

en

rolle

d in

a g

iven

gra

de(

s) in

yea

r t

and

th

e n

um

ber

of

stud

ents

en

rolle

d in

th

e p

revio

us

grad

e(s)

in

yea

r t-

1, w

her

e t

= 1

994-2

000. A

ll es

tim

ates

are

wei

ghte

d b

y th

e 15-1

7 y

ear

old

po

pula

tio

n in

th

e gi

ven

sta

te. T

he

plo

t ab

ove

sho

ws

the

aver

age

dro

po

ut

rate

rat

e fo

r th

e p

erio

d p

re-1

997 (

i.e.

1994-1

996)

and

po

st-1

997 (

i.e. 1998-2

000).

Co

nle

y-T

aber

ad

just

edco

nfi

den

ce i

nte

rval

s in

par

enth

eses

.T

reat

men

t st

ates

are

th

ose

sta

tes

that

wer

e re

quir

ed t

o e

limin

ate

the

and

/o

r sc

ore

op

tio

n. T

hes

e in

clud

e: L

A, M

S, N

E, N

M, T

X. C

on

tro

l st

ates

are

th

ose

th

at a

lrea

dy

had

hig

h e

no

ugh

sta

nd

ard

s b

y 1

997. T

hes

e in

clud

e: A

R, C

A, C

O, D

E, D

C,

FL

, ID

, K

Y, M

D, M

O, N

J, N

Y, N

D, O

K, O

R, S

D, U

T, W

A, W

V, W

I. S

tate

s w

ith

few

er t

han

tw

o o

bse

rvat

ion

s p

er p

erio

d a

re d

rop

ped

fo

r 'a

ll ra

ces'

cat

ego

ry. Sta

tes

wit

h

few

er t

han

tw

o o

bse

rvat

ion

s p

er p

erio

d f

or

any

of

the

dro

po

ut

rate

mea

sure

s b

y ra

ce a

re d

rop

ped

fo

r b

y ra

ce c

ateg

ori

es. C

on

tro

l st

ates

dro

pp

ed f

rom

'all

race

s' r

egre

ssio

ns

due

to m

issi

ng

and

neg

ativ

e d

rop

out

rate

s in

clud

e: N

J. C

on

tro

l st

ates

dro

pp

ed f

rom

reg

ress

ion

by

race

due

to m

issi

ng

and

neg

ativ

e d

rop

out

rate

s in

clud

e: A

R, ID

, K

Y, M

O,

ND

, NJ,

NY

, SD

, U

T, W

A, W

V. N

o t

reat

men

t st

ates

are

dro

pp

ed f

rom

an

y re

gres

sio

ns.

Sin

ce t

her

e ar

e m

ore

mis

sin

gs in

th

e d

rop

ou

t ra

tes

by

race

, th

e 'a

ll ra

ces'

cat

ego

ry is

no

t d

irec

tly

com

par

able

to

th

e ca

tego

ries

by

race

. So

urc

e: C

om

mo

n C

ore

of

Dat

a (C

CD

).

DiD

Est

imate

-1

.3%

(-2.5

0%

, -0

.08%

)

DiD

Est

imate

-0

.5%

(-1.

16%

, 1.

45%

)

DiD

Est

imate

-0

.9%

(-1.

93%

, 4.7

9%

)

DiD

Est

imate

-1

.7%

(-12

.20%

, 0.6

2%

)

Note

:T

he

dro

pou

tra

teis

defi

ned

as

the

rati

oof

stud

ents

enro

lled

ina

giv

engra

de(

s)in

yea

rt

an

dth

enu

mb

erof

stu

den

tsen

roll

edin

the

pre

vio

us

gra

de(

s)in

yea

rt−

1,

wh

ere

t=1994-2

000.

All

esti

mate

sare

wei

ghte

dby

the

15-1

7yea

rold

pop

ula

tion

inth

egiv

enst

ate

.T

he

plo

tab

ove

show

sth

eaver

age

dro

pou

tra

tefo

rth

ep

erio

dp

re-1

997

(i.e

.1994-1

996)

an

dp

ost

-1997

(i.e

.1998-2

000).

Con

ley-T

ab

erad

just

edco

nfi

den

cein

terv

als

inp

are

nth

eses

.T

reatm

ent

state

sare

those

state

sth

at

wer

ere

qu

ired

toel

imin

ate

the

an

d/or

score

op

tion

.T

hes

ein

clu

de:

LA

,M

S,

NE

,N

M,

TX

.C

ontr

ol

state

sare

those

that

alr

ead

yh

ad

hig

hen

ou

gh

stan

dard

sby

1997.

Th

ese

incl

ud

e:A

R,

CA

,C

O,

DE

,

DC

,F

L,

ID,

KY

,M

D,

MO

,N

J,

NY

,N

D,

OK

,O

R,

SD

,U

T,

WA

,W

V,

WI.

Sta

tes

wit

hfe

wer

than

two

ob

serv

ati

on

sp

erp

erio

dare

dro

pp

edfo

r’a

llra

ces’

cate

gory

.S

tate

sw

ith

few

erth

an

two

ob

serv

ati

ons

per

per

iod

for

any

of

the

dro

pou

tra

tem

easu

res

by

race

are

dro

pp

edfo

rby

race

cate

gori

es.

Contr

ol

state

sd

rop

ped

from

’all

race

s’re

gre

ssio

ns

du

e

tom

issi

ng

an

dn

egati

ve

dro

pou

tra

tes

incl

ud

e:N

J.

Contr

ol

state

sd

rop

ped

from

regre

ssio

nby

race

du

eto

mis

sin

gan

dn

egati

ve

dro

pou

tra

tes

incl

ud

e:A

R,

ID,

KY

,M

O,

ND

,

NJ,

NY

,S

D,

UT

,W

A,

WV

.N

otr

eatm

ent

state

sare

dro

pp

edfr

om

any

regre

ssio

ns.

Sin

ceth

ere

are

more

mis

sin

gs

inth

ed

rop

ou

tra

tes

by

race

,th

e’a

llra

ces’

cate

gory

isn

ot

dir

ectl

yco

mp

ara

ble

toth

eca

tegori

esby

race

.S

ou

rce:

Com

mon

Core

of

Data

(CC

D).

19

Page 22: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Fig

ure

8:A

vera

geP

re-

and

Pos

t-19

9712

thG

rade

Dro

pou

tR

ate

for

Tre

atm

ent

and

Con

trol

Gro

up

9.5

%8.6

%

12.4

%13

.8%

8.8

%

5.7

%

13.9

%

11.4

%

9.1

%

7.9

%

12.9

%14

.3%

5.2

%

3.6

%

9.9

%

4.9

%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

All

Races

Wh

ites

Bla

ck

sH

isp

an

ics

Dropout RateF

igu

re 9

.A

vera

ge

Pre

-an

d P

ost

-1997 1

2th

Gra

de

Dro

po

ut

Rat

e fo

r T

reat

men

t an

d C

on

tro

l G

roup

Co

ntr

ol G

roup

Pre

-97

Tre

atm

ent

Gro

up

Pre

-97

Co

ntr

ol G

roup

Po

st-9

7T

reat

men

t G

roup

Po

st-9

7

No

te: T

he

dro

po

ut

rate

is

def

ined

as

the

rati

o o

f st

ud

ents

en

rolle

d in

a g

iven

gra

de(

s) in

yea

r t

and

th

e n

um

ber

of

stud

ents

en

rolle

d in

th

e p

revio

us

grad

e(s)

in

yea

r t-

1, w

her

e t

= 1

994-2

000. A

ll es

tim

ates

are

wei

ghte

d b

y th

e 15-1

7 y

ear

old

po

pula

tio

n i

n t

he

given

sta

te. T

he

plo

t ab

ove

sho

ws

the

aver

age

dro

po

ut

rate

rat

e fo

r th

e p

erio

d p

re-1

997 (

i.e.

1994-1

996)

and

po

st-1

997 (

i.e. 1998-2

000).

Co

nle

y-T

aber

ad

just

edco

nfi

den

ce i

nte

rval

s in

par

enth

eses

.T

reat

men

t st

ates

are

th

ose

sta

tes

that

wer

e re

quir

ed t

o e

limin

ate

the

and

/o

r sc

ore

op

tio

n. T

hes

e in

clud

e: L

A, M

S, N

E, N

M, T

X. C

on

tro

l st

ates

are

th

ose

th

at a

lrea

dy

had

hig

h e

no

ugh

sta

nd

ard

s b

y 1

997. T

hes

e in

clud

e: A

R, C

A, C

O, D

E, D

C,

FL

, ID

, K

Y, M

D, M

O, N

J, N

Y, N

D, O

K, O

R, S

D, U

T, W

A, W

V, W

I. S

tate

s w

ith

few

er t

han

tw

o o

bse

rvat

ion

s p

er p

erio

d a

re d

rop

ped

fo

r 'a

ll ra

ces'

cat

ego

ry. Sta

tes

wit

h

few

er t

han

tw

o o

bse

rvat

ion

s p

er p

erio

d f

or

any

of

the

dro

po

ut

rate

mea

sure

s b

y ra

ce a

re d

rop

ped

fo

r b

y ra

ce c

ateg

ori

es. C

on

tro

l st

ates

dro

pp

ed f

rom

'all

race

s' r

egre

ssio

ns

due

to m

issi

ng

and

neg

ativ

e d

rop

out

rate

s in

clud

e: N

J. C

on

tro

l st

ates

dro

pp

ed f

rom

reg

ress

ion

by

race

due

to m

issi

ng

and

neg

ativ

e d

rop

out

rate

s in

clud

e: A

R, ID

, K

Y, M

O,

ND

, NJ,

NY

, SD

, U

T, W

A, W

V. N

o t

reat

men

t st

ates

are

dro

pp

ed f

rom

an

y re

gres

sio

ns.

Sin

ce t

her

e ar

e m

ore

mis

sin

gs in

th

e d

rop

ou

t ra

tes

by

race

, th

e 'a

ll ra

ces'

cat

ego

ry is

no

t d

irec

tly

com

par

able

to

th

e ca

tego

ries

by

race

. So

urc

e: C

om

mo

n C

ore

of

Dat

a (C

CD

).

DiD

Est

imate

-3

.1%

(-5.0

0%

, -

1.06%

)

DiD

Est

imate

-1

.4%

(-3.0

9%

, 0.5

2%

)

DiD

Est

imate

-4

.4%

(-7.4

5%

, 2.7

6%

)

DiD

Est

imate

-7

.0%

(-8.4

9%

, -

0.8

5%

)

Note

:T

he

dro

pou

tra

teis

defi

ned

as

the

rati

oof

stud

ents

enro

lled

ina

giv

engra

de(

s)in

yea

rt

an

dth

enu

mb

erof

stu

den

tsen

roll

edin

the

pre

vio

us

gra

de(

s)in

yea

rt−

1,

wh

ere

t=1994-2

000.

All

esti

mate

sare

wei

ghte

dby

the

15-1

7yea

rold

pop

ula

tion

inth

egiv

enst

ate

.T

he

plo

tab

ove

show

sth

eaver

age

dro

pou

tra

tefo

rth

ep

erio

dp

re-1

997

(i.e

.1994-1

996)

an

dp

ost

-1997

(i.e

.1998-2

000).

Con

ley-T

ab

erad

just

edco

nfi

den

cein

terv

als

inp

are

nth

eses

.T

reatm

ent

state

sare

those

state

sth

at

wer

ere

qu

ired

toel

imin

ate

the

an

d/or

score

op

tion

.T

hes

ein

clu

de:

LA

,M

S,

NE

,N

M,

TX

.C

ontr

ol

state

sare

those

that

alr

ead

yh

ad

hig

hen

ou

gh

stan

dard

sby

1997.

Th

ese

incl

ud

e:A

R,

CA

,C

O,

DE

,

DC

,F

L,

ID,

KY

,M

D,

MO

,N

J,

NY

,N

D,

OK

,O

R,

SD

,U

T,

WA

,W

V,

WI.

Sta

tes

wit

hfe

wer

than

two

ob

serv

ati

on

sp

erp

erio

dare

dro

pp

edfo

r’a

llra

ces’

cate

gory

.S

tate

sw

ith

few

erth

an

two

ob

serv

ati

ons

per

per

iod

for

any

of

the

dro

pou

tra

tem

easu

res

by

race

are

dro

pp

edfo

rby

race

cate

gori

es.

Contr

ol

state

sd

rop

ped

from

’all

race

s’re

gre

ssio

ns

du

e

tom

issi

ng

an

dn

egati

ve

dro

pou

tra

tes

incl

ud

e:N

J.

Contr

ol

state

sd

rop

ped

from

regre

ssio

nby

race

du

eto

mis

sin

gan

dn

egati

ve

dro

pou

tra

tes

incl

ud

e:A

R,

ID,

KY

,M

O,

ND

,

NJ,

NY

,S

D,

UT

,W

A,

WV

.N

otr

eatm

ent

state

sare

dro

pp

edfr

om

any

regre

ssio

ns.

Sin

ceth

ere

are

more

mis

sin

gs

inth

ed

rop

ou

tra

tes

by

race

,th

e’a

llra

ces’

cate

gory

isn

ot

dir

ectl

yco

mp

ara

ble

toth

eca

tegori

esby

race

.S

ou

rce:

Com

mon

Core

of

Data

(CC

D).

20

Page 23: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Fig

ure

9:P

erce

nta

geof

HS

Stu

den

tsE

ighte

enor

Old

erby

Gra

de

and

Rac

e,C

PS

Oct

ober

1994

-200

0

1.3%

5.4

%

29.3

%

0.9

%

3.1

%

25.6

%

1.6%

9.7

%

37.7

%

2.8

%

11.5

%

38.7

%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

10th

Gra

de

11th

Gra

de

12th

Gra

de

% of Students

Fig

ure

10.

Per

cen

tage

of

HS S

tuden

ts E

igh

teen

or

Old

er b

y G

rade

and R

ace,

CP

S O

cto

ber

1994-2

000

Over

all

Wh

ites

Bla

cks

His

pan

ics

Auth

ors

' cal

cula

tio

ns

fro

m C

PS O

cto

ber

1994-2

000 d

ata.

Th

e sa

mp

le is

rest

rict

ed t

o t

ho

se w

ho

rep

ort

bei

ng

enro

lled

in

hig

h s

cho

ol b

etw

een

th

e ag

es o

f 12 a

nd

20.

Au

thors

’ca

lcu

lati

on

sfr

om

CP

SO

ctob

er1994-2

000

data

.T

he

sam

ple

isre

stri

cted

toth

ose

wh

ore

port

bei

ng

enro

lled

inh

igh

sch

ool

bet

wee

nth

eages

of

12

an

d20.

21

Page 24: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

If high school students respond to changes in GED score requirements, GED testing rates

would likely increase immediately before increases in the standards and decline immediately

afterward, artificially increasing our estimate of the dropout effect. In order to check that

our estimates are not produced from a surge in test taking in 1996 and a subsequent decline

induced by the shift to higher standards in 1997, we delete the 1996 observations. This

barely effects our estimates.15

Figure 9 shows that differences in age between whites and minority students might explain

why the reform has greater impact on minority students. For whites, 25.6% of the students

are 18 and above in the fall of 12th grade. The corresponding figures for blacks and Hispanics

are 37.7% and 38.7%, respectively. Far more minority students are in the age group that is not

restricted by mandatory school leaving age requirements or GED minimum age requirements.

Thus, more minority students are at risk of being induced to drop out of school by the GED at

any given grade level. In addition, minority students have fewer credits than white students

at each grade level, making the GED a more attractive option for them (See Agodini and

Dynarski (1998)). Availability of the GED will induce more students to drop out as more

students both delay entry into school and are held back in school.16 Restricting the minimum

age of GED test taking is one way to prevent early exit from secondary education.17

4 The GED Option Program

In our second study we evaluate the effect of introducing school-sanctioned GED preparation

programs into high schools. As previously noted, a large and growing number of GED test

takers certify before age 20 and before their high school class graduates. This represents a

shift away from the “traditional” concept of the GED as a second chance for older dropouts.

15See Web Appendix D.4 for this and other sensitivity analyses. In Section D.5 of the web appendix weshow that the trends prior to 1994 and post-2000 are in line with the trends displayed in Figure 5. Thetrends in the time period studies are not anamalous.

16 Heckman and LaFontaine (2010).17The Web Appendix Section E (locate at http://jenni.uchicago.edu/GED_dropout/GED_

incentives/) presents a fixed effect analysis of the introduction of higher passing standards on dropoutrates which corroborate the analysis of Section 3.

22

Page 25: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

As shown in Figure 10a, 16 to 19 year old GED test takers are the largest and fastest

growing group. Figure 10b shows that the bulk of the growth in the 16 to 19 age category

comes from 16 to 17 year olds. The GED may be inducing students to leave high school

rather than graduate.

4.1 The GED Option Program

The American Council on Education (ACE), the organization that operates the GED test,

allows some states to offer the “GED Option Program.” This program offers GED prepara-

tion and certification in high schools. It aims to target students at a high risk of dropping

out, and guide them into GED certification as an alternative. The definition of high risk

varies by state, but typically is defined to mean that the student is at risk of not graduating

with his class or is a year behind in credits.

Originally started in 1989, implementation of the Option Program varies greatly by state.

Virginia requires 15 hours of academic preparation per week and work- or career-based

training for 10 hours a week, for a median of 12 weeks. Virginia also requires scores of 450

on each subsection of the official practice test. This is higher than the passing standard. In

contrast, Oregon reports a median of 20 study hours and median enrollment of 75 days.18,19

Despite the stated goal of targeting students behind in credits and likely to dropout, the

majority of Option Program participants graduate before their high school class.20

The GED Option Program offers at-risk students a mixed bag. The program may help

teach valuable skills to students who would otherwise drop out. However, introducing the

GED directly into the high school may induce some students to GED certify rather than

graduate. It may do this in several ways. Its presence in regular high schools lowers the

information costs of learning about, preparing for, and taking the GED. Integrating it into

the school system may also give the GED credential credibility. Teachers and counselors

18GED Option Statistical Report (2009).19 Figures F-1 and F-2 in the Web Appendix show that the state option programs vary greatly in terms

of average days enrolled and average preparation.20See Figure F-3 in the Web Appendix.

23

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Figure 10: Decomposing GED Testing Trends by Age

(a) Number of Test Takers by Age

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

GED

 Test Takers

0

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Year

Age 16 to 19 Age 20 to 24 Age 25 to 29 

Age 30 to 34 Age 35 to 39 Age 40 Plus

(b) Decomposing 16 to 19 year of Test Taking

30%

25%

t Takers

20%

t of G

ED Test

15%

Percen

t

10%

5%

1975 1980 1985 1990 1995 2000 2005 2010

Age 16 to 17 Age 18 to 19Age 16 to 17 Age 18 to 19

Source: GED Testing Services Annual Statistical Reports (1974-2009).

24

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may encourage at-risk students to pursue the GED, not knowing the evidence of its minimal

beneficial impact. School districts can count GED Option students for funding purposes

while they are enrolled in the program, but remove them from the classroom. Administrators

may encourage disruptive students to take the GED Option. The GED Option may have

peer effects as those preparing for the GED are still present at their local high schools. The

credibility of the GED Option is further bolstered by the fact that in many states the GED

credential is semantically indistinguishable from a high school diploma.21 (See Table F-1 in

the Web Appendix.)

4.2 The Oregon GED Option Program

We evaluate the effect of the Oregon GED Option program on high school graduation rates

using administrative records. Oregon implemented a GED Option program in 2001. The

requirements of Oregon’s program are lower than those of many other states.

Oregon allows school districts to petition the state for permission to implement GED

Option programs. Once permitted, school districts typically implement the program in one

of the following ways: (1) district wide; (2) in specific high schools in the district; or (3)

only in non-traditional high schools or community colleges in the district. By 2005, 54% of

districts had some form of an option program, with 49% having option programs in some

schools and 28% having district-wide option programs.

4.3 The Effect of the GED Option Program on Cohort Completion

Rates

Using the Common Core Data, we construct 8th grade, 9th grade, and 10th grade cohort

completion rates, where the 8th grade cohort completion rate is the number of diplomas

issued in a year divided by the number of 8th graders enrolled four years earlier. 9th and

21However, No Child Left Behind legislation prohibits states from issuing actual diplomas based on GEDcertification.

25

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10th grade cohort completion rates are constructed in the same manner, but using 9th grade

enrollment lagged three years or 10th grade enrollment lagged 2 years. We use all three

cohort completion rates to check the robustness of our estimates. Using Oregon Department

of Education Administrative data we construct three variables to capture the presence of a

GED Option Program: (1) a dummy for district-wide implementation, (2) a dummy if the

district has any regular high schools offering GED Option programs, and (3) a dummy for

implementation of a GED Option program, but not in regular high schools. Districts with

GED option programs outside of regular high schools typically have GED Option programs

in local community colleges, or second-chance schools for expelled students. School districts

with option programs in regular schools typically have a large number of schools offering the

program and resemble district-wide programs. We present evidence on the exogeneity of the

presence of these programs in districts in Section 4.4.

Using this data we regress one of our three cohort completion rates on one of the three

measures of the GED Option program, a set of district controls, and district and year fixed

effects:

Yi,t = αGEDi,t + β1Xi,t + β2Y eart + β3Districti + εi,t, i = 1, . . . , I; t = 1, . . . , T

where Yi,t is either 8th, 9th, or 10th grade cohort completion rates; GEDi,t is a binary vari-

able indicating the presence or absence of a GED Option program; Xi,t is a vector of time

variant district characteristics; Y eart is a year fixed effect and Districti is a district fixed

effect. We include among the Xi,t: percent black enrollment, percent Hispanic enrollment,

percent free lunch eligible, percent free or reduced lunch eligible, the pupil-teacher ratio,

total expenditure per pupil and total revenue per pupil. State and federally operated dis-

tricts, charter districts, vocational or special needs districts, and non-operating districts are

excluded from our analysis. We include data from 2000 through 2008 in our analysis, with

2002 being the first year programs were offered.

26

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The presence of district-wide GED Option programs in schools decreases cohort comple-

tion rates. 8th, 9th, and 10th grade cohort completion rates decrease by 4.2%, 3.0%, and

4.2% after districts implement a district-wide program (Figure 11a). These estimates are

all statistically significant.22 We find similar results ranging from 3% to 4% for districts

that have any option program in a regular high school.23 Cohort completion rates are not

affected in districts with Option programs implemented outside of regular high schools. (See

Figure 11b.) This evidence supports the notion that information and availability play key

roles in the decision to GED certify.

Not all students induced to drop out of high school by the Option program GED certify.

We find an increase in GED certification rates24 across cohorts in districts that adopt a GED

Option program. The presence of a district-wide Option program is associated with a 1.7%

increase in the cohort GED certification rate for the 8th, 9th, and 10th grade cohorts.25 This

increase is only half of the estimated decrease in cohort diploma rates.26

4.4 Which Districts Adopt Option Programs?

Districts select into Option Programs. Such selection may bias our results. Using NCES

Common Core Data and district level 2000 Census data, we compare districts prior to the

2001 introduction of the GED Option. We find only small differences between districts that

adopt GED Option programs and those that do not, suggesting that selection does not play

a role (see Figure F-5 and Figure F-6 in the Web Appendix).

22Estimates are statistically significant at the 0.05 level for 8th and 10th grade cohort completion ratesand the 0.1 level for 9th grade rates.

23See Figure F-4 in the Web Appendix.24GED certification rates are measured by the number of “other completers” reported by a district, which

includes individuals that GED certify through school or state preparation programs.25These estimates are jointly statistically significant at the 0.10 level.26We find no statistically significant effect of the Option Program on dropout rates when it is placed in

alternative schools. This provides evidence that its presence in ordinary high school advertises its availabilityand possibly fosters iatrogenic peer effects.

27

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Figure 11: The Effect of the GED Option Program on High School Cohort Completion Rates

(a) District-Wide GED Option Program

1.7% 1.7% 1.7%

2%

4%eter Rates

0%

2%

r Other Com

ple

-2%

hort Diploma o

‐3.0%

‐4.2%-6%

-4%

t Change in Coh

‐4.2%

-8%Diploma Rate (8th) Diploma Rate (9th) Diploma Rate (10th)

Percen

t

Diplomas Other Completers

(b) Option Program Outside of Regular High Schools

2.5%2.7%

5%

6%

eter Rates

1.8%

1.4%3%

4%

or Other Com

ple

0.4% 1.0%

1%

2%

hort Diploma o

1%

0%

1%

t Change in Coh

-2%

-1%

Diploma Rate (8th) Diploma Rate (9th) Diploma Rate (10th)

Percen

Diplomas Other Completers

Source: National Center for Education Statistics, Common Core Data and Oregon School Districts Administrative Data. Notes:

Cohort completion rates are defined as the number of diplomas issued divided by 8th, 9th, or 10th grade enrollment lagged

the appropriate number of years. The definition of other completers includes students who GED certify through a district or

state-sanctioned certification program, and thus should capture students who GED certify through the GED Option program.

Regressions include controls for percent black enrollment, percent Hispanic enrollment, percent free lunch eligible, percent free

or reduced lunch eligible, pupil teacher ratio, expenditures per pupil, revenue per pupil, and district and year fixed effects.

Regressions include 2001-2002 school year through 2007-2008 school year. The bars show standard errors.

28

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5 Eliminating the GED Option in California

Our third study examines the effect of introducing the GED for civilians on dropout rates in

California. In 1974, California became the last state to offer a state recognized credential for

GEDs.27 The California legislature amended the state education code to include provisions

for the issuance of the California High School Equivalency Certificate to be given out on the

basis of GED test scores.28 According to the new law, this certificate would be “deemed to

be a high school diploma for the purpose of meeting the requirements of employment by all

state and local public agencies.”

In 1974, the GED testing program was neither as large as it is today nor as popular

among school age youth. However, even then it accounted for nearly 9% of all high school

credentials issued and 34% of the test takers were age 16 to 19.29

To assess the impact of introducing the GED program we compare the high school grad-

uation rate in California with that of all other states in the three years before and after

1974. Since enrollment counts by grade are not available on a state-by-state basis in this

period, we use an estimate of the 14 year old population as a proxy for the entering 9th

grade enrollment.30

Figure 12 displays the overall, male and female mean high school graduation rates pre-

and post-1974 in both California and the rest of the country.31 Difference-in-difference

estimates are also reported. Prior to the introduction of the GED program, California had a

high school graduation rate that was higher than that in the rest of the United States. Once

the GED was introduced, California graduation rates immediately fell to the levels of other

27See Allen and Jones (1992).28California Legislature (1973).29See Figures 1 and 2.30Population estimates for California were obtained from the California Demographic Research Unit. They

provide estimates of the state population by age for the resident population on July 1st of each year. Weuse the July 1st 15 year old population in the next year to proxy for the previous years fall 14 year oldpopulation. U.S. population estimates by age are from the Census Bureau and are also estimates of theresident population on July 1st.

31Figure G-1 in the Web Appendix displays completion rates by year for California and the rest of thecountry for the years 1971-1977.

29

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states. While graduation rates fell both in California and the rest of the U.S. during this

time, difference-in-difference estimates show that introducing the GED program resulted in

a 3 percentage point greater drop in California relative to other states in the period from

1975-1977.

The adverse effect of introducing the GED program on graduation rates was larger for

males than females.32 Male graduation rates fell by 3.6 percentage points while the gradu-

ation rate for females declined by 2.6 points. One reason for this differential is that males

might have better immediate employment opportunities and would, therefore, find an early

exit from high school through GED certification a more attractive option. Additionally,

males are farther behind in school than females at any given age. This finding is also con-

sistent with the evidence reported in Heckman and LaFontaine (2010), who show that male

graduation rates have declined more than female rates since the early 1970s.

Evidence from the late introduction of the GED program in California further suggests

that the GED induces youth to drop out of school. Eliminating the GED option would

increase high school graduation rates. Arguably, estimates based on 1974 data understate

the effect we would observe today if the GED were not available to students. Since 1974,

the GED program has expanded and become more popular with adolescents and young

adults. In addition, high school standards, as measured by mandatory courses and high-

stakes testing requirements, have increased substantially since the mid-1980s (See Lillard

and DeCicca (2001)). These changes increase the cost of graduating from high school and

the attractiveness of the GED. For all of these reasons, it is plausible that our estimates

based on California in the mid-1970s understate the potential impact of enacting this reform

under current conditions.

32Data for this period are not available by race.

30

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Fig

ure

12:

Gra

duat

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Rat

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ean

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men

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the

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am,

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31

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6 Conclusion

This paper presents three studies of the effect of the GED program on the high school

graduation rate. In the first study, we find that raising the difficulty of obtaining the GED,

through increasing passing requirements, reduces dropout rates. A nationally mandated

increase in GED passing standards in 1997 resulted in a 1.3 percentage point drop in the

overall dropout rate in states that were required to change their standards relative to those

that were not required to do so. The observed reduction in dropout rates was stronger for

older students enrolled in upper grade levels since these individuals are less restricted in

both school leaving and GED testing. The twelfth grade high school dropout rate fell by 3

percentage points following the 1997 reform.

Minorities are more sensitive to the availability of GED credentials than are whites. At

a given grade level, minority students tend to be older and further behind than majority

students. These factors make obtaining a GED credential more attractive than high school

graduation for minorities. Minority dropout rates exhibit the sharpest declines following

the increase in GED passing standards. Black 12th grade dropout rates declined by 4.8

percentage points, those for Hispanics by 6.2 points and those for whites by 1.3 percentage

points. There are smaller changes in dropout behavior for younger students not eligible to

drop out.

In a second study, we examine the effect of introducing the GED into the high school

setting. The GED Option program integrates GED test preparation and certification for

struggling students directly into high schools. The introduction of the GED Option program

in Oregon led to a four percent decrease in graduation rates.

In a third study, we show that introducing the GED produces substantial changes in

overall graduation rates. Prior to the introduction of the GED program in 1974, California

had higher graduation rates compared to those in the rest of the country. Our estimates show

that when the California legislature established credentials for civilian dropouts passing the

GED test, graduation rates fell by 3 points in California relative to the rest of the U.S., and

32

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graduation levels dropped to those of the other states. Eliminating the GED option today

would likely have much larger effects given the wider acceptance of the program.

Taken together, these studies suggest that the GED program induces students to drop

out of school. The program has changed from its original intention of providing a second

chance for adults to becoming a primary vehicle for obtaining high school certification among

many students enrolled in secondary education.

This evidence should be a source of concern. The benefits of GED certification are slight.

GED recipients perform in the labor market, post-secondary schooling, the military, and,

in general, society at a level very close to that of dropouts and below that of high school

graduates (see Heckman, Humphries, and Mader, 2011). Given the poor performance of

GED recipients relative to high school graduates, the findings reported in this paper provide

evidence that states should adopt policies to eliminate the availability of the GED for school-

age children. Such a change in policy would not only raise high school graduation rates, but

could also improve the future prospects of disadvantaged students.

33

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https://teach.lanecc.edu/ged/ged2002.htm (accessed May 9, 2008).

Lillard, D. R. (2001). Do general educational development certificate policies induce youth

out of high school? Unpublished manuscript, Cornell University.

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and across time. Economics of Education Review 20 (5), 459–473.

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Zhang, J., M. Y. Han, and M. B. Patterson (2009b). Young GED examinees and their

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36

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Web Appendix for “Taking the Easy Way Out: How the

GED Testing Program Induces Students to Drop Out”

James J. Heckman, John Eric Humphries, Paul A. LaFontaine,

and Pedro L. Rodrıguez

First draft, December 2007

Revised, May 4, 2011

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Contents

A Data Sources 7

B Definitions 8

B.1 Weighted GED Test Taking Rate Across Groups: . . . . . . . . . . . . . . . 8

B.2 Overall Dropout Rate (10th-12th Grade) in state i in year t: . . . . . . . . . 9

B.3 Upper Level Dropout Rate (12th Grade) in state i in year t: . . . . . . . . . 9

B.4 Lower Level Dropout Rate (10th-11th Grade) in state i in year t: . . . . . . 9

B.5 Cohort Completion Rates (8th, 9th, or 10th) in district i in year t: . . . . . . 10

C Supplementary Materials for the 1997 Increase in Passing Standards 11

D Robustness Checks for the Effect of the 1997 Increase in Passing Standards 16

D.1 Alternate Control Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

D.2 Southern States Only . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

D.3 Excluding States that Changed Minimum Age Requirements . . . . . . . . . 20

D.4 Excluding Additional Years from the Analysis . . . . . . . . . . . . . . . . . 20

D.5 Extending the GED Testing and Dropout Rate Trends . . . . . . . . . . . . 22

E Fixed Effect Estimates of the Effect of Increasing Passing Standards 24

F Supplementary Material for the Analysis of the GED Option Program 29

G Additional Supplementary Materials 43

List of Figures

C-1 Average Pre- and Post-1997 10th-11th Grade Dropout Rate for Treatment

and Control Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

C-2 White Dropout Rates by Year, Treatment vs. Control States . . . . . . . . . 13

1

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C-3 Black Dropout Rates by Year, Treatment vs. Control States . . . . . . . . . 14

C-4 Hispanic Dropout Rates by Year, Treatment vs. Control States . . . . . . . 15

D-1 GED Testing and Dropout Rates By Year, Treatment vs. Control States

(extended years) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

F-1 Median Days of Enrollment in GED Option, by State: 2008–09 School Year . 30

F-2 Median Preparation Hours of GED Option Candidates, by State: 2008–09

School Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

F-3 Ninth Grade Cohort Graduation Status of GED Option Candidates, by State:

2008–09 School Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

F-4 The Effect of Regular Schools Option Program on High School Cohort Com-

pletion Rates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

F-5 Descriptive Comparisons of Districts with and without GED Option Programs

(2000, prior to GED Option). . . . . . . . . . . . . . . . . . . . . . . . . . . 35

F-6 Descriptive Comparisons of Districts with and without GED Option Programs

(2000, prior to GED Option) . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

G-1 Graduation Rate Before and After Implementing the GED Program, Califor-

nia vs. All other States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

List of Tables

D-1 Summary of Robustness Checks . . . . . . . . . . . . . . . . . . . . . . . . . 17

D-1 Summary of Robustness Checks (Continued) . . . . . . . . . . . . . . . . . . 18

D-1 Summary of Robustness Checks (Continued) . . . . . . . . . . . . . . . . . . 19

D-2 Alternative Year Specification for Change in Test Difficulty . . . . . . . . . . 21

E-1 Changes in GED Testing and Mandatory Schooling Age Requirements by

Treatment Status, 1994-2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

2

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E-2 Weighted OLS Fixed Effects Estimates of the Impact of the 1997 GED Reform

on Various Dropout Rate Measures . . . . . . . . . . . . . . . . . . . . . . . 27

E-3 Summary Statistics of Variables Used in the Analysis . . . . . . . . . . . . . 28

F-1 States Issuing Credentials Indistinguishable from High School Diplomas (2008)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

F-2 The Effect of District-Wide Option Programs on Cohort Diploma Rates in

Oregon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

F-3 The Effect of District-Wide Option Programs on Cohort Other-Completer

Rates in Oregon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

F-4 The Effect of Option Programs only in Alternative Schools on Cohort Diploma

Rates in Oregon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

F-5 The Effect of Option Programs only in Alternative Schools on Cohort Other-

Completer Rates in Oregon . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

F-6 The Effect of Option Programs in Traditional Schools on Cohort Diploma

Rates in Oregon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

F-7 The Effect of Option Programs in Traditional Schools on Cohort Other-

Completer Rates in Oregon . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

G-1 Fixed Effects Estimates of the Effect of the Reform on GED Test Taking Rates

by Younger Cohorts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

G-2 Fixed Effects Estimates of the Effect of the Reform on GED Test Taking Rates

by Younger Cohorts Controlling for Age Requirements . . . . . . . . . . . . 46

G-3 Fixed Effects Estimates of the Effect of the Reform on Dropout Rates (All

Races) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

G-4 Fixed Effects Estimates of the Effect of the Reform on Dropout Rates (Whites) 48

G-5 Fixed Effects Estimates of the Effect of the Reform on Dropout Rates (Blacks) 49

G-6 Fixed Effects Estimates of the Effect of the Reform on Dropout Rates (Hispanics) 50

3

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G-7 Fixed Effects Estimates of the Effect of the Reform on Dropout Rates Con-

trolling for Age Requirements (All Races) . . . . . . . . . . . . . . . . . . . 51

G-8 Fixed Effects Estimates of the Effect of the Reform on Dropout Rates Con-

trolling for Age Requirements (Whites) . . . . . . . . . . . . . . . . . . . . . 52

G-9 Fixed Effects Estimates of the Effect of the Reform on Dropout Rates Con-

trolling for Age Requirements (Blacks . . . . . . . . . . . . . . . . . . . . . . 53

G-10 Fixed Effects Estimates of the Effect of the Reform on Dropout Rates Con-

trolling for Age Requirements (Hispanics) . . . . . . . . . . . . . . . . . . . 54

G-11 Fixed Effects Estimates of the Effect of the Reform on Dropout Rates with

Minimum Score Changer States as Control Group (All Races) . . . . . . . . 55

G-12 Fixed Effects Estimates of the Effect of the Reform on Dropout Rates with

Minimum Score Changer States as Control Group (Whites) . . . . . . . . . . 56

G-13 Fixed Effects Estimates of the Effect of the Reform on Dropout Rates with

Minimum Score Changer States as Control Group (Blacks) . . . . . . . . . . 57

G-14 Fixed Effects Estimates of the Effect of the Reform on Dropout Rates with

Minimum Score Changer States as Control Group (Hispanics) . . . . . . . . 58

G-15 Fixed Effects Estimates of the Effect of the Reform on Dropout Rates Re-

stricting Sample to Southern States (All Races) . . . . . . . . . . . . . . . . 59

G-16 Fixed Effects Estimates of the Effect of the Reform on Dropout Rates Re-

stricting Sample to Southern States (Whites) . . . . . . . . . . . . . . . . . . 60

G-17 Fixed Effects Estimates of the Effect of the Reform on Dropout Rates Re-

stricting Sample to Southern States (Blacks) . . . . . . . . . . . . . . . . . . 61

G-18 Fixed Effects Estimates of the Effect of the Reform on Dropout Rates Re-

stricting Sample to Southern States (Hispanics) . . . . . . . . . . . . . . . . 62

G-19 Fixed Effects Estimates of the Effect of the Reform on Dropout Rates Ex-

cluding States that Changed Minimum Age Required to Drop Out (All Races) 63

4

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G-20 Fixed Effects Estimates of the Effect of the Reform on Dropout Rates Ex-

cluding States that Changed Minimum Age Required to Drop Out (Whites) 64

G-21 Fixed Effects Estimates of the Effect of the Reform on Dropout Rates Ex-

cluding States that Changed Minimum Age Required to Drop Out (Blacks) . 65

G-22 Fixed Effects Estimates of the Effect of the Reform on Dropout Rates Ex-

cluding States that Changed Minimum Age Required to Drop Out (Hispanics) 66

G-23 Fixed Effects Estimates of the Effect of the Reform on Dropout Rate Exclud-

ing States that Changed the Minimum Age Required to either Drop Out or

Take the GED (All Races) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

G-24 Fixed Effects Estimates of the Effect of the Reform on Dropout Rate Exclud-

ing States that Changed the Minimum Age Required to either Drop Out or

Take the GED (Whites) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

G-25 Fixed Effects Estimates of the Effect of the Reform on Dropout Rate Exclud-

ing States that Changed the Minimum Age Required to either Drop Out or

Take the GED (Blacks) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

G-26 Fixed Effects Estimates of the Effect of the Reform on Dropout Rate Exclud-

ing States that Changed the Minimum Age Required to either Drop Out or

Take the GED (Hispanics) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

G-27 GLS Fixed Effects Estimates of the Effect of the Reform on Dropout Rates

Controlling for Age Requirements (All Races) . . . . . . . . . . . . . . . . . 71

G-28 GLS Fixed Effects Estimates of the Effect of the Reform on Dropout Rates

Controlling for Age Requirements (Whites) . . . . . . . . . . . . . . . . . . . 72

G-29 GLS Fixed Effects Estimates of the Effect of the Reform on Dropout Rates

Controlling for Age Requirements (Blacks) . . . . . . . . . . . . . . . . . . . 73

G-30 GLS Fixed Effects Estimates of the Effect of the Reform on Dropout Rates

Controlling for Age Requirements (Hispanics) . . . . . . . . . . . . . . . . . 74

5

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G-31 GLS Fixed Effects Estimates of the Effect of the Reform on Dropout Rates

Controlling for Age Requirements and Using Panel Specific AR-1 Autocorre-

lation Structure (All Races) . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

G-32 GLS Fixed Effects Estimates of the Effect of the Reform on Dropout Rates

Controlling for Age Requirements and Using Panel Specific AR-1 Autocorre-

lation Structure (Whites) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

G-33 GLS Fixed Effects Estimates of the Effect of the Reform on Dropout Rates

Controlling for Age Requirements and Using Panel Specific AR-1 Autocorre-

lation Structure (Blacks) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

G-34 GLS Fixed Effects Estimates of the Effect of the Reform on Dropout Rates

Controlling for Age Requirements and Using Panel Specific AR-1 Autocorre-

lation Structure (Hispanics) . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

G-35 Difference-in-Difference Estimates of the Effect of the Reform on Dropout

Rates Controlling for Age Requirements and Restricting Control Group to

California and Florida (High Immigrant States) (All Races) . . . . . . . . . . 79

G-36 Difference-in-Difference Estimates of the Effect of the Reform on Dropout

Rates Controlling for Age Requirements and Restricting Control Group to

California and Florida (High Immigrant States) (Whites) . . . . . . . . . . . 80

G-37 Difference-in-Difference Estimates of the Effect of the Reform on Dropout

Rates Controlling for Age Requirements and Restricting Control Group to

California and Florida (High Immigrant States) (Blacks) . . . . . . . . . . . 81

G-38 Difference-in-Difference Estimates of the Effect of the Reform on Dropout

Rates Controlling for Age Requirements and Restricting Control Group to

California and Florida (High Immigrant States) (Hispanics) . . . . . . . . . . 82

6

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A Data Sources

This article uses the Common Core of Data (CCD) to construct annual exit rates from

secondary schooling. The CCD data are collected each year by the National Center for Edu-

cation Statistics from state and local departments of education. The data provide aggregate

annual counts of enrollments and diplomas issued (excluding GED certificates, certificates of

completion and other alternative credentials) at the state, district and even school level. We

use the aggregate state counts to construct various dropout measures using the methodology

summarized in the next section. Many states do not report estimates by race for all years.

They tend to be states that do not have large minority populations and therefore our esti-

mates should not be overly biased due to their exclusion. In a very small number of cases,

the estimated dropout rate was negative and these were set to missing. We experimented

with a number of imputation procedures to correct for missing values. These were found

not to affect our results in any substantial manner. The final measures used in the paper

do not contain imputations and all estimates by race are restricted to the same sample of

states to make the estimates comparable across groups. To be included in the analysis, states

needed to have at least two observations for each dropout measure in both the pre and post

treatment periods. It was not necessary to drop any treatment states in the analysis by race.

The estimates by race should be considered more cautiously than the overall estimates due

to these data limitations. For the analysis not by race only a few state-year observations are

missing for the treatment and control states.

A summary of all the variables used in our analysis broken down by treatment status

and time period are listed in Table E-3. GED testing rates by age at the individual state

level are obtained from multiple years of the annual GED statistical reports published by the

American Council on Education (ACE). GED age requirements by state are also from this

source. Mandatory school leaving age for each state was obtained from various years of the

Digest of Education Statistics. Annual measures at the state level of unemployment rates

and per capita income were obtained from the Bureau of Labor Statistics and the Census

7

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Bureau, respectively. Population estimates at the state level for each age are obtained from

the U.S. Census Bureau. For the California analysis, population estimates were obtained

from the California Demographic Research Unit due to a lack of data available on the state

level from the Census Bureau. Diplomas issued in California and the U.S. were obtained

from various years of the Digest of Education Statistics.

District level data on the implementation of the GED Option program were collected

from unpublished administrative records from the Oregon Department of Education. These

data include which districts implemented Option programs from its introduction in the 2001-

2002 school year, through 2008. Cohort Completion rates and additional district level data

were collected from the National Center for Educational Statistics Common Core Data.

Enrollment by grade, number of diplomas issued per year, number of other completers per

year, and district-level demographics were collected from 1998 through 2008. Additional

Data from the 2000 Census incorporated into the NCES Common Core Data on poverty

rates, median family income, and per-capita income by district were also extracted

B Definitions

B.1 Weighted GED Test Taking Rate Across Groups:

Let i denote state and t denote years. The rate is

51∑i=1

G(a)i,tP (a)i,t

,

with i = 1, ..., 51 and t = 1994, ..., 2000, where

G(a)i,t = Number of GED Test Takers Age a in state i in year t.

P (a)i,t = Population Age a in state i in year t.

8

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The number of states included in each sum is the number of states in groups 1 and 3 as

defined in the text, dropping any states with fewer than two observations per period.

B.2 Overall Dropout Rate (10th-12th Grade) in state i in year t:

DOi,t =

P (15− 17)i,t51∑i=1

P (15− 17)i,t

·(E(10)i,t−1 + E(11)i,t−1 + E(12)i,t−1)− (E(11)i,t + E(12)i,t +Hi,t)

(E(10)i,t−1 + E(11)i,t−1 + E(12)i,t−1),

with i = 1, ..., 51 and t = 1994, ..., 2000, where

P (15− 17)i,t = Population Age 15-17 for i, t.

E(10)i,t = Enrollment in Grade 10 for i, t.

E(11)i,t = Enrollment in Grade 10 for i, t.

E(12)i,t = Enrollment in Grade 10 for i, t.

Hi,t is the number who graduate in state i at time t. These are people who were enrolled in

school in the previous year.

B.3 Upper Level Dropout Rate (12th Grade) in state i in year t:

DUi,t =

P (15− 17)i,t51∑i=1

P (15− 17)i,t

· E(12)i,t−1 −Hi,t

E(12)i,t−1

,

with i = 1, ..., 51 and t = 1994, ..., 2000.

B.4 Lower Level Dropout Rate (10th-11th Grade) in state i in

year t:

DLi,t =

P (15− 17)i,t51∑i=1

P (15− 17)i,t

· (E(10)i,t−1 + E(11)i,t−1)− (E(11)i,t + E(12)i,t)

(E(10)i,t−1 + E(11)i,t−1),

9

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with i = 1, ..., 51 and t = 1994, ..., 2000.

Weighted dropout rates by group are obtained by summing across the states in each group.

B.5 Cohort Completion Rates (8th, 9th, or 10th) in district i in

year t:

CR =Diplomasi,t

Enrollment8th,i,t−4

CR9th,i,t =Diplomasi,t

Enrollment9th,i,t−3

CR10th,i,t =Diplomasi,t

Enrollment10th,i,t−2

with t = 2000,...,2008, where:

CRjth,i,t = Completion Rates Using Base Grade j for i, t.

Diplomasi,t = Number of Diplomas Issued for i, t.

Enrollmentjth,i,t = Number of Enrolled Students in Grade j for i, t.

10

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C Supplementary Materials for the 1997 Increase in

Passing Standards

11

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Fig

ure

C-1

:A

vera

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re-

and

Pos

t-19

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th-1

1th

Gra

de

Dro

pou

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ate

for

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atm

ent

and

Con

trol

Gro

up

10.8

%

8.6

%

17.0

%

16.5

%

11.2

%

8.9

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14.0

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15.2

%

10.5

%

8.2

%

16.0

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14.3

%

10.5

%

8.5

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13.4

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.3%

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8%

10%

12%

14%

16%

18%

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All

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Wh

ites

Bla

ck

sH

isp

an

ics

Dropout RateF

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.A

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Pre

-an

d P

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r T

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l G

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ol G

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Pre

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ent

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Pre

-97

Co

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ol G

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reat

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t G

roup

Po

st-9

7

No

te: T

he

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rate

is

def

ined

as

the

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ents

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d in

a g

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de(

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r t

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ber

of

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ents

en

rolle

d in

th

e p

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us

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e(s)

in

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r t-

1,

wh

ere

t =

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000. A

ll es

tim

ates

are

wei

ghte

d b

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e 15-1

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ear

old

po

pula

tio

n in

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sho

ws

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age

dro

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e fo

r th

e p

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d

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i.e. 1994-1

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and

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st-1

997 (

i.e. 1998-2

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den

ce in

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in p

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reat

men

t st

ates

are

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ose

sta

tes

that

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quir

ed t

o

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inat

e th

e an

d/

or

sco

re o

pti

on

. T

hes

e in

clud

e: L

A, M

S, N

E, N

M, T

X. C

on

tro

l st

ates

are

th

ose

th

at a

lrea

dy

had

hig

h e

no

ugh

sta

nd

ard

s b

y 1997. T

hes

e in

clud

e: A

R,

CA

, CO

, DE

, D

C, F

L, ID

, K

Y, M

D, M

O, N

J, N

Y, N

D, O

K, O

R, S

D, U

T, W

A, W

V, W

I. S

tate

s w

ith

few

er t

han

tw

o o

bse

rvat

ion

s p

er p

erio

d a

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rop

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r 'a

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ca

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ry. Sta

tes

wit

h f

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an t

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per

per

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fo

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rop

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s b

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rop

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fo

r b

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ce c

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es. C

on

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l st

ates

dro

pp

ed f

rom

'a

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reg

ress

ion

s d

ue

to m

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and

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ativ

e d

rop

out

rate

s in

clud

e: N

J. C

on

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l st

ates

dro

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ed f

rom

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ress

ion

by

race

due

to m

issi

ng

and

neg

ativ

e d

rop

out

rate

s in

clud

e: A

R, ID

, K

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, U

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o t

reat

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t st

ates

are

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pp

ed f

rom

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sio

ns.

Sin

ce t

her

e ar

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ore

mis

sin

gs in

th

e d

rop

out

rate

s b

y ra

ce, th

e 'a

ll ra

ces'

cat

ego

ry is

no

t d

irec

tly

com

par

able

to

th

e ca

tego

ries

by

race

. So

urc

e: C

om

mo

n C

ore

of

Dat

a (C

CD

).

DiD

Est

imate

-0

.42%

(-1.

87%

,

0.7

4%

)

DiD

Est

imate

0.0

2%

( -1

.13%

, 1.

64%

)

DiD

Est

imate

0.3

6%

(-1.

88%

, 8.3

9%

)

DiD

Est

imate

0.2

7%

(-13

.38%

, 2.5

7%

)

Note

:T

he

dro

pou

tra

teis

defi

ned

as

the

rati

oof

stud

ents

enro

lled

ina

giv

engra

de(

s)in

yea

rt

an

dth

enu

mb

erof

stu

den

tsen

roll

edin

the

pre

vio

us

gra

de(

s)in

yea

rt−

1,

wh

eret=

1994-2

000.

All

esti

mate

sare

wei

ghte

dby

the

15-1

7yea

rold

pop

ula

tion

inth

egiv

enst

ate

.T

he

plo

tab

ove

show

sth

eaver

age

dro

pou

tra

tefo

rth

ep

erio

dp

re-1

997

(i.e

.1994-1

996)

an

dp

ost

-1997

(i.e

.1998-2

000).

Con

ley-T

ab

erad

just

edco

nfi

den

cein

terv

als

inp

are

nth

eses

.T

reatm

ent

state

sare

those

state

sth

at

wer

ere

qu

ired

toel

imin

ate

the

an

d/or

score

op

tion

.T

hes

ein

clu

de:

LA

,M

S,

NE

,N

M,

TX

.C

ontr

ol

state

sare

those

that

alr

ead

yh

ad

hig

hen

ou

gh

stan

dard

sby

1997.

Th

ese

incl

ud

e:A

R,

CA

,C

O,

DE

,

DC

,F

L,

ID,

KY

,M

D,

MO

,N

J,

NY

,N

D,

OK

,O

R,

SD

,U

T,

WA

,W

V,

WI.

Sta

tes

wit

hfe

wer

than

two

ob

serv

ati

on

sp

erp

erio

dare

dro

pp

edfo

r’a

llra

ces’

cate

gory

.S

tate

sw

ith

few

erth

an

two

ob

serv

ati

ons

per

per

iod

for

any

of

the

dro

pou

tra

tem

easu

res

by

race

are

dro

pp

edfo

rby

race

cate

gori

es.

Contr

ol

state

sd

rop

ped

from

’all

race

s’re

gre

ssio

ns

du

e

tom

issi

ng

an

dn

egati

ve

dro

pou

tra

tes

incl

ud

e:N

J.

Contr

ol

state

sd

rop

ped

from

regre

ssio

nby

race

du

eto

mis

sin

gan

dn

egati

ve

dro

pou

tra

tes

incl

ud

e:A

R,

ID,

KY

,M

O,

ND

,

NJ,

NY

,S

D,

UT

,W

A,

WV

.N

otr

eatm

ent

state

sare

dro

pp

edfr

om

any

regre

ssio

ns.

Sin

ceth

ere

are

more

mis

sin

gs

inth

ed

rop

ou

tra

tes

by

race

,th

e’a

llra

ces’

cate

gory

isn

ot

dir

ectl

yco

mp

ara

ble

toth

eca

tegori

esby

race

.S

ou

rce:

Com

mon

Core

of

Data

(CC

D).

12

Page 52: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Fig

ure

C-2

:W

hit

eD

rop

out

Rat

esby

Yea

r,T

reat

men

tvs.

Con

trol

Sta

tes

Note

:G

ED

test

ing

rate

sare

calc

ula

ted

from

yea

rly

GE

DS

tati

stic

al

Rep

ort

sas

the

per

centa

ge

of

the

state

pop

ula

tion

inth

egiv

enage

ran

ge

wh

ota

ke

the

GE

Din

that

yea

r.

Dro

pou

tra

tes

are

calc

ula

ted

from

the

Com

mon

Core

of

Data

(CC

D)

as

the

exit

rate

for

those

inth

ein

dic

ate

dgra

des

inth

egiv

enyea

r.S

eeth

eap

pen

dix

for

furt

her

det

ails.

Sta

tes

requ

ired

tora

ise

GE

Dp

ass

requ

irem

ents

(ch

an

ger

state

s)are

:L

A,

MS

,N

E,

NM

,T

X.

Sta

tes

that

did

not

chan

ge

pass

requ

irem

ents

(non

-ch

an

ger

state

s)are

:A

R,

CA

,

CO

,D

E,

DC

,F

L,

ID,

KY

,M

D,

MO

,N

J,

NY

,N

D,

OK

,O

R,

SD

,U

T,

WA

,W

V,

WI.

NJ

isex

clu

ded

inall

dro

pou

tca

lcu

lati

on

sd

ue

tod

ata

erro

rs.

13

Page 53: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Fig

ure

C-3

:B

lack

Dro

pou

tR

ates

by

Yea

r,T

reat

men

tvs.

Con

trol

Sta

tes

Note

:G

ED

test

ing

rate

sare

calc

ula

ted

from

yea

rly

GE

DS

tati

stic

al

Rep

ort

sas

the

per

centa

ge

of

the

state

pop

ula

tion

inth

egiv

enage

ran

ge

wh

ota

ke

the

GE

Din

that

yea

r.

Dro

pou

tra

tes

are

calc

ula

ted

from

the

Com

mon

Core

of

Data

(CC

D)

as

the

exit

rate

for

those

inth

ein

dic

ate

dgra

des

inth

egiv

enyea

r.S

eeth

eap

pen

dix

for

furt

her

det

ails.

Sta

tes

requ

ired

tora

ise

GE

Dp

ass

requ

irem

ents

(ch

an

ger

state

s)are

:L

A,

MS

,N

E,

NM

,T

X.

Sta

tes

that

did

not

chan

ge

pass

requ

irem

ents

(non

-ch

an

ger

state

s)are

:A

R,

CA

,

CO

,D

E,

DC

,F

L,

ID,

KY

,M

D,

MO

,N

J,

NY

,N

D,

OK

,O

R,

SD

,U

T,

WA

,W

V,

WI.

NJ

isex

clu

ded

inall

dro

pou

tca

lcu

lati

on

sd

ue

tod

ata

erro

rs.

14

Page 54: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Fig

ure

C-4

:H

ispan

icD

rop

out

Rat

esby

Yea

r,T

reat

men

tvs.

Con

trol

Sta

tes

Note

:G

ED

test

ing

rate

sare

calc

ula

ted

from

yea

rly

GE

DS

tati

stic

al

Rep

ort

sas

the

per

centa

ge

of

the

state

pop

ula

tion

inth

egiv

enage

ran

ge

wh

ota

ke

the

GE

Din

that

yea

r.

Dro

pou

tra

tes

are

calc

ula

ted

from

the

Com

mon

Core

of

Data

(CC

D)

as

the

exit

rate

for

those

inth

ein

dic

ate

dgra

des

inth

egiv

enyea

r.S

eeth

eap

pen

dix

for

furt

her

det

ails.

Sta

tes

requ

ired

tora

ise

GE

Dp

ass

requ

irem

ents

(ch

an

ger

state

s)are

:L

A,

MS

,N

E,

NM

,T

X.

Sta

tes

that

did

not

chan

ge

pass

requ

irem

ents

(non

-ch

an

ger

state

s)are

:A

R,

CA

,

CO

,D

E,

DC

,F

L,

ID,

KY

,M

D,

MO

,N

J,

NY

,N

D,

OK

,O

R,

SD

,U

T,

WA

,W

V,

WI.

NJ

isex

clu

ded

inall

dro

pou

tca

lcu

lati

on

sd

ue

tod

ata

erro

rs.

15

Page 55: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

D Robustness Checks for the Effect of the 1997 In-

crease in Passing Standards

This section reports alternative specifications of our model in the main text to test the

robustness of the results (Table D-1). As in the main text, we only report the γ estimates

for each check. For the full set of parameter estimates please refer to the Web Appendix.

D.1 Alternate Control Group

As one check of the exogeneity of the policy change assumption, we re-estimate the model

using states that were required to raise the GED minimum score requirement rather than

states that did not change. These are the lightly shaded states in Figure 4 in the text.

These states were also required to change GED policies but the increase in difficulty was

much smaller.

The first row of Table D-1 summarizes our overall results and results by race using this

alternate control group. The estimated effect on the upper level dropout rate is in general

larger than the effect obtained from our main control group. On the other hand, the effect

on the lower level dropout rate is in general smaller except for whites. However, these results

are generally consistent with the results reported in the text.

D.2 Southern States Only

With the exception of Nebraska, all treatment group states are located in the South. This

suggests that while the timing of the score requirement change was exogenous, the states

that were required to change were not a random sample of states. States likely set GED

standards endogenously to reflect conditions in the state, i.e. states with traditionally higher

dropout rates have lower GED testing standards. As a further robustness check of our main

results, we estimate the model using only treatment and control states located in the South.

The estimates, shown in the second row of Table D-1, are very similar to those reported

16

Page 56: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leD

-1:

Sum

mar

yof

Rob

ust

nes

sC

hec

ks

All

Rac

esW

hit

esB

lack

sH

isp

anic

sTr

eatm

ent E

ffect

-1.5

3%-1

.08%

-1.9

0%-2

.67%

95%

CI (

Hub

er-W

hite

)(-2

.37%

, -0.

68%

)(-1

.92%

, -0.

24%

)(-4

.00%

, 0.2

1%)

(-4.8

7%, -

0.47

%)

95%

CI (

Conl

ey-T

aber

)(-2

.19%

, -0.

49%

)(-3

.40%

, 0.1

5%)

(-4.3

9%, 2

.06%

)(-6

.17%

, -0.

98%

)90

% C

I (Co

nley

-Tab

er)

(-2.0

5%, -

0.64

%)

(-3.0

2%, -

0.02

%)

(-3.8

6%, 1

.40%

)(-5

.68%

, -1.

33%

)Tr

eatm

ent E

ffect

-1.4

5%-0

.42%

-2.1

6%-3

.08%

95%

CI (

Hub

er-W

hite

)(-1

.91%

, -1.

00%

)(-0

.75%

, -0.

10%

)(-3

.23%

, -1.

09%

)(-5

.51%

, -0.

65%

)95

% C

I (Co

nley

-Tab

er)

(-2.0

4%, 0

.06%

)(-0

.79%

, 2.8

2%)

(-3.3

9%, -

1.18

%)

(-7.5

3%, -

0.72

%)

90%

CI (

Conl

ey-T

aber

)(-1

.91%

, -0.

14%

)(-0

.65%

, 1.5

2%)

(-2.9

6%, -

1.29

%)

(-7.2

3%, -

0.99

%)

Trea

tmen

t Effe

ct-1

.30%

-0.4

2%-1

.25%

-2.5

8%95

% C

I (H

uber

-Whi

te)

(-2.0

6%, -

0.53

%)

(-0.7

7%, -

0.07

%)

(-3.4

2%, 0

.92%

)(-3

.47%

, -1.

70%

)95

% C

I (Co

nley

-Tab

er)

(-2.5

6%, -

0.37

%)

(-0.9

0%, 0

.15%

)(-3

.00%

, 3.4

7%)

(-3.7

2%, 0

.48%

)90

% C

I (Co

nley

-Tab

er)

(-2.3

0%, -

0.56

%)

(-0.8

0%, 0

.03%

)(-2

.69%

, 2.6

0%)

(-3.5

6%, -

0.06

%)

Not

e: Th

e fu

ll re

gres

sion

spec

ifica

tions

are

pre

sent

ed in

the

web

app

endi

x. U

nles

s oth

erw

ise st

ated

the

mod

el is

estim

ated

usin

g O

LS. S

tate

15-

17 y

ear o

ld p

opul

atio

ns

(by

race

for r

eleva

nt re

gres

sions

) are

use

d as

weig

hts.

The

estim

ate

repo

rted

abov

e is

the

inte

ract

ion

betw

een

the

treat

men

t sta

te d

umm

y an

d th

e po

st p

erio

d du

mm

y, w

here

the

treat

men

t sta

te d

umm

y is

equa

l to

1 fo

r tre

atm

ent s

tate

s and

the

post

per

iod

dum

my

is eq

ual t

o 1

for t

he y

ears

199

8-20

00, o

ther

wise

bot

h du

mm

ies a

re e

qual

to 0

. Sta

tes w

ith fe

wer

than

two

obse

rvat

ions

per

per

iod

are

drop

ped

for "

all ra

ces"

regr

essio

ns. S

tate

s with

few

er th

an tw

o ob

serv

atio

ns p

er p

erio

d fo

r any

of t

he

drop

out r

ate

mea

sure

s by

race

are

dro

pped

for b

y ra

ce re

gres

sions

. Tre

atm

ent s

tate

s are

thos

e st

ates

that

wer

e re

quire

d to

elim

inat

e th

e an

d/or

scor

e op

tion.

The

se

inclu

de: L

A, M

S, N

E, N

M, T

X. U

nles

s oth

erw

ise st

ated

con

trol s

tate

s are

thos

e th

at w

ere

not r

equi

red

to ra

ise th

eir G

ED

min

imum

scor

e re

quire

men

t. Th

ese

inclu

de:

AR,

CA

, CO

, DE

, DC,

FL,

ID, K

Y, M

D, M

O, N

J, N

Y, N

D, O

K, O

R, S

D, U

T, W

A, W

V, W

I. Fr

om th

ese

stat

es th

e fo

llow

ing

had

to b

e dr

oppe

d fr

om th

e "b

y ra

ce"

regr

essio

ns d

ue to

miss

ing

and

nega

tive

drop

out r

ates

: AR,

ID, K

Y, M

O, N

D, N

J, N

Y, S

D, U

T, W

A, W

V. T

he st

ate

of N

J is a

lso d

ropp

ed fr

om th

e "a

ll ra

ces"

re

gres

sions

. Sco

re c

hang

er st

ates

are

thos

e st

ates

that

wer

e re

quire

d to

raise

their

min

imum

scor

e re

quire

men

t fro

m 3

5 to

40

in 1

997.

The

se in

clude

: AK

, AL,

AZ

, CT,

G

A, H

I, IA

, IL,

IN, K

S, M

A, M

E, M

I, M

N, M

T, N

C, N

H, N

V, O

H, P

A, R

I, SC

, TN

, VA

, VT,

WY

. Fro

m th

ese

stat

es th

e fo

llow

ing

are

drop

ped

due

to m

issin

g an

d ne

gativ

e dr

opou

t rat

es: A

L, A

Z, I

A, M

E, M

N, M

T, N

H, S

C, T

N, V

T, W

Y. N

o tre

atm

ent s

tate

s are

dro

pped

from

any

of t

he re

gres

sions

. Sta

tes t

hat c

hang

ed th

e m

inim

um a

ge re

quire

d to

dro

p ou

t inc

lude

: DC

(from

orig

inal

cont

rol g

roup

), M

S an

d N

M (b

oth

from

trea

tmen

t gro

up).

Stat

es th

at c

hang

ed e

ither

scho

ol le

avin

g or

G

ED

age

requ

irem

ents

inclu

de:

AR,

DC,

KY

, MO

, OK

, OR,

SD

, UT,

WI (

from

orig

inal

cont

rol g

roup

) and

MS,

NE

and

NM

(fro

m tr

eatm

ent g

roup

).

Exc

ludi

ng st

ates

that

ch

ange

d m

inim

um a

ge

requ

ired

to d

rop

out

10th

-12t

h G

rad

e D

rop

out

Rat

e

Sout

hern

stat

es o

nly

Scor

e ch

ange

r sta

tes a

s co

ntro

l gro

up

Note

:T

he

full

regre

ssio

nsp

ecifi

cati

on

sare

pre

sente

din

the

Web

Ap

pen

dix

.U

nle

ssoth

erw

ise

state

dth

em

od

elis

esti

mate

du

sin

gO

LS

.S

tate

15-1

7yea

rold

pop

ula

tion

s(b

y

race

for

rele

vant

regre

ssio

ns)

are

use

das

wei

ghts

.T

he

esti

mate

rep

ort

edab

ove

isth

ein

tera

ctio

nb

etw

een

the

trea

tmen

tst

ate

du

mm

yan

dth

ep

ost

per

iod

du

mm

y,w

her

eth

e

trea

tmen

tst

ate

du

mm

yis

equ

al

to1

for

trea

tmen

tst

ate

san

dth

ep

ost

per

iod

du

mm

yis

equ

al

to1

for

the

yea

rs1998-2

000,

oth

erw

ise

both

du

mm

ies

are

equ

al

to0.

Sta

tes

wit

h

few

erth

an

two

ob

serv

ati

on

sp

erp

erio

dare

dro

pp

edfo

r“all

race

s”re

gre

ssio

ns.

Sta

tes

wit

hfe

wer

than

two

ob

serv

ati

on

sp

erp

erio

dfo

rany

of

the

dro

pou

tra

tem

easu

res

by

race

are

dro

pp

edfo

rby

race

regre

ssio

ns.

Tre

atm

ent

state

sare

those

state

sth

at

wer

ere

qu

ired

toel

imin

ate

the

an

d/or

score

op

tion

.T

hes

ein

clu

de:

LA

,M

S,

NE

,N

M,

TX

.U

nle

ss

oth

erw

ise

state

dco

ntr

ol

state

sare

those

that

wer

en

ot

requ

ired

tora

ise

thei

rG

ED

min

imu

msc

ore

requ

irem

ent.

Th

ese

incl

ud

e:A

R,

CA

,C

O,

DE

,D

C,

FL

,ID

,K

Y,

MD

,M

O,

NJ,

NY

,N

D,

OK

,O

R,

SD

,U

T,

WA

,W

V,

WI.

Fro

mth

ese

state

sth

efo

llow

ing

had

tob

ed

rop

ped

from

the

”by

race

”re

gre

ssio

ns

du

eto

mis

sin

gan

dn

egati

ve

dro

pou

tra

tes:

AR

,ID

,K

Y,

MO

,N

D,

NJ,

NY

,S

D,

UT

,W

A,

WV

.T

he

state

of

NJ

isals

od

rop

ped

from

the

”all

race

s”re

gre

ssio

ns.

Sco

rech

an

ger

state

sare

those

state

sth

at

wer

ere

qu

ired

to

rais

eth

eir

min

imu

msc

ore

requ

irem

ent

from

35

to40

in1997.

Thes

ein

clu

de:

AK

,A

L,

AZ

,C

T,

GA

,H

I,IA

,IL

,IN

,K

S,

MA

,M

E,

MI,

MN

,M

T,

NC

,N

H,

NV

,O

H,

PA

,R

I,S

C,

TN

,V

A,

VT

,W

Y.

Fro

mth

ese

state

sth

efo

llow

ing

are

dro

pp

edd

ue

tom

issi

ng

an

dn

egati

ve

dro

pou

tra

tes:

AL

,A

Z,

IA,

ME

,M

N,

MT

,N

H,

SC

,T

N,

VT

,W

Y.

No

trea

tmen

t

state

sare

dro

pp

edfr

om

any

of

the

regre

ssio

ns.

Sta

tes

that

chan

ged

the

min

imu

mage

requ

ired

tod

rop

ou

tin

clu

de:

DC

(fro

mori

gin

al

contr

ol

gro

up

),M

San

dN

M(b

oth

from

trea

tmen

tgro

up

).S

tate

sth

at

chan

ged

eith

ersc

hool

leavin

gor

GE

Dage

requ

irem

ents

incl

ud

e:A

R,

DC

,K

Y,

MO

,O

K,

OR

,S

D,

UT

,W

I(f

rom

ori

gin

al

contr

ol

gro

up

)an

dM

S,

NE

an

dN

M(f

rom

trea

tmen

tgro

up

).

17

Page 57: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leD

-1:

Sum

mar

yof

Rob

ust

nes

sC

hec

ks

(Con

tinued

)

All

Rac

esW

hit

esB

lack

sH

isp

anic

sTr

eatm

ent E

ffect

-1.5

3%-1

.08%

-1.9

0%-2

.67%

95%

CI (

Hub

er-W

hite

)(-2

.37%

, -0.

68%

)(-1

.92%

, -0.

24%

)(-4

.00%

, 0.2

1%)

(-4.8

7%, -

0.47

%)

95%

CI (

Conl

ey-T

aber

)(-2

.19%

, -0.

49%

)(-3

.40%

, 0.1

5%)

(-4.3

9%, 2

.06%

)(-6

.17%

, -0.

98%

)90

% C

I (Co

nley

-Tab

er)

(-2.0

5%, -

0.64

%)

(-3.0

2%, -

0.02

%)

(-3.8

6%, 1

.40%

)(-5

.68%

, -1.

33%

)Tr

eatm

ent E

ffect

-1.4

5%-0

.42%

-2.1

6%-3

.08%

95%

CI (

Hub

er-W

hite

)(-1

.91%

, -1.

00%

)(-0

.75%

, -0.

10%

)(-3

.23%

, -1.

09%

)(-5

.51%

, -0.

65%

)

10th

-12t

h G

rad

e D

rop

out

Rat

e

Sout

hern

stat

es o

nly

Scor

e ch

ange

r sta

tes a

s co

ntro

l gro

up

95%

C(H

beW

te)

(.9

%,

.00%

)(0

.75%

,0.

0%)

(3.

3%,

.09%

)(5

.5%

,0.

65%

)95

% C

I (Co

nley

-Tab

er)

(-2.0

4%, 0

.06%

)(-0

.79%

, 2.8

2%)

(-3.3

9%, -

1.18

%)

(-7.5

3%, -

0.72

%)

90%

CI (

Conl

ey-T

aber

)(-1

.91%

, -0.

14%

)(-0

.65%

, 1.5

2%)

(-2.9

6%, -

1.29

%)

(-7.2

3%, -

0.99

%)

Trea

tmen

t Effe

ct-1

.30%

-0.4

2%-1

.25%

-2.5

8%95

% C

I (H

uber

-Whi

te)

(-2.0

6%, -

0.53

%)

(-0.7

7%, -

0.07

%)

(-3.4

2%, 0

.92%

)(-3

.47%

, -1.

70%

)95

% C

I (Co

nley

-Tab

er)

(-2.5

6%, -

0.37

%)

(-0.9

0%, 0

.15%

)(-3

.00%

, 3.4

7%)

(-3.7

2%, 0

.48%

)90

% C

I (Co

nley

-Tab

er)

(-2.3

0%, -

0.56

%)

(-0.8

0%, 0

.03%

)(-2

.69%

, 2.6

0%)

(-3.5

6%, -

0.06

%)

Not

e: Th

e fu

ll re

gres

sion

spec

ifica

tions

are

pre

sent

ed in

the

web

app

endi

x. U

nles

s oth

erw

ise st

ated

the

mod

el is

estim

ated

usin

g O

LS. S

tate

15-

17 y

ear o

ld p

opul

atio

ns

(by

race

for r

eleva

nt re

gres

sions

) are

use

d as

weig

hts.

The

estim

ate

repo

rted

abov

e is

the

inte

ract

ion

betw

een

the

treat

men

t sta

te d

umm

y an

d th

e po

st p

erio

d du

mm

y, w

here

the

treat

men

t sta

te d

umm

y is

equa

l to

1 fo

r tre

atm

ent s

tate

s and

the

post

per

iod

dum

my

is eq

ual t

o 1

for t

he y

ears

199

8-20

00, o

ther

wise

bot

h du

mm

ies a

re e

qual

0S

ihf

hb

ii

dd

df

"ll

"i

Sih

fh

bi

id

ff

h

Exc

ludi

ng st

ates

that

ch

ange

d m

inim

um a

ge

requ

ired

to d

rop

out

to 0

. Sta

tes w

ith fe

wer

than

two

obse

rvat

ions

per

per

iod

are

drop

ped

for "

all ra

ces"

regr

essio

ns. S

tate

s with

few

er th

an tw

o ob

serv

atio

ns p

er p

erio

d fo

r any

of t

he

drop

out r

ate

mea

sure

s by

race

are

dro

pped

for b

y ra

ce re

gres

sions

. Tre

atm

ent s

tate

s are

thos

e st

ates

that

wer

e re

quire

d to

elim

inat

e th

e an

d/or

scor

e op

tion.

The

se

inclu

de: L

A, M

S, N

E, N

M, T

X. U

nles

s oth

erw

ise st

ated

con

trol s

tate

s are

thos

e th

at w

ere

not r

equi

red

to ra

ise th

eir G

ED

min

imum

scor

e re

quire

men

t. Th

ese

inclu

de:

AR,

CA

, CO

, DE

, DC,

FL,

ID, K

Y, M

D, M

O, N

J, N

Y, N

D, O

K, O

R, S

D, U

T, W

A, W

V, W

I. Fr

om th

ese

stat

es th

e fo

llow

ing

had

to b

e dr

oppe

d fr

om th

e "b

y ra

ce"

regr

essio

ns d

ue to

miss

ing

and

nega

tive

drop

out r

ates

: AR,

ID, K

Y, M

O, N

D, N

J, N

Y, S

D, U

T, W

A, W

V. T

he st

ate

of N

J is a

lso d

ropp

ed fr

om th

e "a

ll ra

ces"

re

gres

sions

. Sco

re c

hang

er st

ates

are

thos

e st

ates

that

wer

e re

quire

d to

raise

their

min

imum

scor

e re

quire

men

t fro

m 3

5 to

40

in 1

997.

The

se in

clude

: AK

, AL,

AZ

, CT,

G

A, H

I, IA

, IL,

IN, K

S, M

A, M

E, M

I, M

N, M

T, N

C, N

H, N

V, O

H, P

A, R

I, SC

, TN

, VA

, VT,

WY

. Fro

m th

ese

stat

es th

e fo

llow

ing

are

drop

ped

due

to m

issin

g an

d ne

gativ

e dr

opou

t rat

es: A

L, A

Z, I

A, M

E, M

N, M

T, N

H, S

C, T

N, V

T, W

Y. N

o tre

atm

ent s

tate

s are

dro

pped

from

any

of t

he re

gres

sions

. Sta

tes t

hat c

hang

ed th

e m

inim

um a

ge re

quire

d to

dro

p ou

t inc

lude

: DC

(from

orig

inal

cont

rol g

roup

), M

S an

d N

M (b

oth

from

trea

tmen

t gro

up).

Stat

es th

at c

hang

ed e

ither

scho

ol le

avin

g or

G

ED

age

requ

irem

ents

inclu

de:

AR,

DC,

KY

, MO

, OK

, OR,

SD

, UT,

WI (

from

orig

inal

cont

rol g

roup

) and

MS,

NE

and

NM

(fro

m tr

eatm

ent g

roup

).

10th

-11t

hG

rad

eD

rop

out

Rat

e

All

Rac

esW

hit

esB

lack

sH

isp

anic

s

Trea

tmen

t Effe

ct-0

.23%

-0.3

9%0.

25%

-1.0

9%95

% C

I (H

uber

-Whi

te)

(-0.9

1%, 0

.47%

)(-1

.10%

, 0.3

2%)

(-2.7

4%, 3

.25%

)(-4

.33%

, 2.1

5%)

95%

CI (

Conl

ey-T

aber

)(-1

.47%

, 0.6

6%)

(-3.2

2%, 0

.52%

)(-2

.43%

, 6.1

2%)

(-4.8

2%, 0

.92%

)90

% C

I (Co

nley

-Tab

er)

(-1.3

1%, 0

.47%

)(-2

.75%

, 0.3

9%)

(-2.0

1%, 4

.83%

)(-4

.34%

, 0.4

8%)

Trea

tmen

t Effe

ct-0

.95%

-0.5

3%-1

.59%

-1.8

9%95

% C

I (H

uber

-Whi

te)

(-1.5

2%, -

0.38

%)

(-1.5

6%, 0

.50%

)(-3

.67%

, 0.4

8%)

(-5.1

6%, 1

.39%

)95

%CI

(Cl

Tb

)(1

83%

086

%)

(126

%1

77%

)(3

59%

015

%)

(906

%0

14%

)

Scor

e ch

ange

r sta

tes a

s co

ntro

l gro

up

Sout

hern

stat

es o

nly

10th

-11t

h G

rad

e D

rop

out

Rat

e

95%

CI (

Conl

ey-T

aber

)(-1

.83%

, 0.8

6%)

(-1.2

6%, 1

.77%

)(-3

.59%

, -0.

15%

)(-9

.06%

, 0.1

4%)

90%

CI (

Conl

ey-T

aber

)(-1

.71%

, 0.5

6%)

(-1.1

1%, 1

.11%

)(-3

.09%

, -0.

52%

)(-8

.18%

, -0.

34%

)Tr

eatm

ent E

ffect

-0.5

6%0.

01%

0.13

%-1

.25%

95%

CI (

Hub

er-W

hite

)(-1

.68%

, 0.5

7%)

(-1.0

3%, 1

.05%

)(-3

.49%

, 3.7

4%)

(-2.4

0%, -

0.09

%)

95%

CI (

Conl

ey-T

aber

)(-1

.91%

, 0.6

11%

)(-0

.95%

, 1.3

9%)

(-2.7

6%, 7

.41%

)-3

.73%

, 2.6

6%)

90%

CI (

Conl

ey-T

aber

)(-1

.73%

, 0.3

9%)

(-0.8

8%, 0

.99%

)(-2

.50%

, 5.0

0%)

(-3.3

1%, 1

.63%

)N

ote:

The

full

regr

essio

n sp

ecifi

catio

ns a

re p

rese

nted

in th

e w

eb a

ppen

dix.

Unl

ess o

ther

wise

stat

ed th

e m

odel

is es

timat

ed u

sing

OLS

. Sta

te 1

5-17

yea

r old

pop

ulat

ions

(b

y ra

ce fo

r rele

vant

regr

essio

ns) a

re u

sed

as w

eight

s. Th

e es

timat

e re

porte

d ab

ove

is th

e in

tera

ctio

n be

twee

n th

e tre

atm

ent s

tate

dum

my

and

the

post

per

iod

dum

my,

whe

re th

e tre

atm

ent s

tate

dum

my

is eq

ual t

o 1

for t

reat

men

t sta

tes a

nd th

e po

st p

erio

d du

mm

y is

equa

l to

1 fo

r the

yea

rs 1

998-

2000

, oth

erw

ise b

oth

dum

mies

are

equ

al

Exc

ludi

ng st

ates

that

ch

ange

d m

inim

um a

ge

requ

ired

to d

rop

out

to 0

. Sta

tes w

ith fe

wer

than

two

obse

rvat

ions

per

per

iod

are

drop

ped

for "

all ra

ces"

regr

essio

ns. S

tate

s with

few

er th

an tw

o ob

serv

atio

ns p

er p

erio

d fo

r any

of t

he

drop

out r

ate

mea

sure

s by

race

are

dro

pped

for b

y ra

ce re

gres

sions

. Tre

atm

ent s

tate

s are

thos

e st

ates

that

wer

e re

quire

d to

elim

inat

e th

e an

d/or

scor

e op

tion.

The

se

inclu

de: L

A, M

S, N

E, N

M, T

X. U

nles

s oth

erw

ise st

ated

con

trol s

tate

s are

thos

e th

at w

ere

not r

equi

red

to ra

ise th

eir G

ED

min

imum

scor

e re

quire

men

t. Th

ese

inclu

de:

AR,

CA

, CO

, DE

, DC,

FL,

ID, K

Y, M

D, M

O, N

J, N

Y, N

D, O

K, O

R, S

D, U

T, W

A, W

V, W

I. Fr

om th

ese

stat

es th

e fo

llow

ing

had

to b

e dr

oppe

d fr

om th

e "b

y ra

ce"

regr

essio

ns d

ue to

miss

ing

and

nega

tive

drop

out r

ates

: AR,

ID, K

Y, M

O, N

D, N

J, N

Y, S

D, U

T, W

A, W

V. T

he st

ate

of N

J is a

lso d

ropp

ed fr

om th

e "a

ll ra

ces"

re

gres

sions

. Sco

re c

hang

er st

ates

are

thos

e st

ates

that

wer

e re

quire

d to

raise

their

min

imum

scor

e re

quire

men

t fro

m 3

5 to

40

in 1

997.

The

se in

clude

: AK

, AL,

AZ

, CT,

G

A, H

I, IA

, IL,

IN, K

S, M

A, M

E, M

I, M

N, M

T, N

C, N

H, N

V, O

H, P

A, R

I, SC

, TN

, VA

, VT,

WY

. Fro

m th

ese

stat

es th

e fo

llow

ing

are

drop

ped

due

to m

issin

g an

d ne

gativ

e dr

opou

t rat

es: A

L, A

Z, I

A, M

E, M

N, M

T, N

H, S

C, T

N, V

T, W

Y. N

o tre

atm

ent s

tate

s are

dro

pped

from

any

of t

he re

gres

sions

. Sta

tes t

hat c

hang

ed th

e m

inim

um a

ge re

quire

d to

dro

p ou

t inc

lude

: DC

(from

orig

inal

cont

rol g

roup

), M

S an

d N

M (b

oth

from

trea

tmen

t gro

up).

Stat

es th

at c

hang

ed e

ither

scho

ol le

avin

g or

G

ED

age

requ

irem

ents

inclu

de:

AR,

DC,

KY

, MO

, OK

, OR,

SD

, UT,

WI (

from

orig

inal

cont

rol g

roup

) and

MS,

NE

and

NM

(fro

m tr

eatm

ent g

roup

).

Note

:T

he

full

regre

ssio

nsp

ecifi

cati

on

sare

pre

sente

din

the

Web

Ap

pen

dix

.U

nle

ssoth

erw

ise

state

dth

em

od

elis

esti

mate

du

sin

gO

LS

.S

tate

15-1

7yea

rold

pop

ula

tion

s(b

y

race

for

rele

vant

regre

ssio

ns)

are

use

das

wei

ghts

.T

he

esti

mate

rep

ort

edab

ove

isth

ein

tera

ctio

nb

etw

een

the

trea

tmen

tst

ate

du

mm

yan

dth

ep

ost

per

iod

du

mm

y,w

her

eth

e

trea

tmen

tst

ate

du

mm

yis

equ

al

to1

for

trea

tmen

tst

ate

san

dth

ep

ost

per

iod

du

mm

yis

equ

al

to1

for

the

yea

rs1998-2

000,

oth

erw

ise

both

du

mm

ies

are

equ

al

to0.

Sta

tes

wit

h

few

erth

an

two

ob

serv

ati

on

sp

erp

erio

dare

dro

pp

edfo

r“all

race

s”re

gre

ssio

ns.

Sta

tes

wit

hfe

wer

than

two

ob

serv

ati

on

sp

erp

erio

dfo

rany

of

the

dro

pou

tra

tem

easu

res

by

race

are

dro

pp

edfo

rby

race

regre

ssio

ns.

Tre

atm

ent

state

sare

those

state

sth

at

wer

ere

qu

ired

toel

imin

ate

the

an

d/or

score

op

tion

.T

hes

ein

clu

de:

LA

,M

S,

NE

,N

M,

TX

.U

nle

ss

oth

erw

ise

state

dco

ntr

ol

state

sare

those

that

wer

en

ot

requ

ired

tora

ise

thei

rG

ED

min

imu

msc

ore

requ

irem

ent.

Th

ese

incl

ud

e:A

R,

CA

,C

O,

DE

,D

C,

FL

,ID

,K

Y,

MD

,M

O,

NJ,

NY

,N

D,

OK

,O

R,

SD

,U

T,

WA

,W

V,

WI.

Fro

mth

ese

state

sth

efo

llow

ing

had

tob

ed

rop

ped

from

the

”by

race

”re

gre

ssio

ns

du

eto

mis

sin

gan

dn

egati

ve

dro

pou

tra

tes:

AR

,ID

,K

Y,

MO

,N

D,

NJ,

NY

,S

D,

UT

,W

A,

WV

.T

he

state

of

NJ

isals

od

rop

ped

from

the

”all

race

s”re

gre

ssio

ns.

Sco

rech

an

ger

state

sare

those

state

sth

at

wer

ere

qu

ired

to

rais

eth

eir

min

imu

msc

ore

requ

irem

ent

from

35

to40

in1997.

Thes

ein

clu

de:

AK

,A

L,

AZ

,C

T,

GA

,H

I,IA

,IL

,IN

,K

S,

MA

,M

E,

MI,

MN

,M

T,

NC

,N

H,

NV

,O

H,

PA

,R

I,S

C,

TN

,V

A,

VT

,W

Y.

Fro

mth

ese

state

sth

efo

llow

ing

are

dro

pp

edd

ue

tom

issi

ng

an

dn

egati

ve

dro

pou

tra

tes:

AL

,A

Z,

IA,

ME

,M

N,

MT

,N

H,

SC

,T

N,

VT

,W

Y.

No

trea

tmen

t

state

sare

dro

pp

edfr

om

any

of

the

regre

ssio

ns.

Sta

tes

that

chan

ged

the

min

imu

mage

requ

ired

tod

rop

ou

tin

clu

de:

DC

(fro

mori

gin

al

contr

ol

gro

up

),M

San

dN

M(b

oth

from

trea

tmen

tgro

up

).S

tate

sth

at

chan

ged

eith

ersc

hool

leavin

gor

GE

Dage

requ

irem

ents

incl

ud

e:A

R,

DC

,K

Y,

MO

,O

K,

OR

,S

D,

UT

,W

I(f

rom

ori

gin

al

contr

ol

gro

up

)an

dM

S,

NE

an

dN

M(f

rom

trea

tmen

tgro

up

).

18

Page 58: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leD

-1:

Sum

mar

yof

Rob

ust

nes

sC

hec

ks

(Con

tinued

)

All

Rac

esW

hit

esB

lack

sH

isp

anic

s

Trea

tmen

t Effe

ct-4

.83%

-2.1

1%-6

.10%

-6.6

6%95

% C

I (H

uber

-Whi

te)

(-7.0

5%, -

2.59

%)

(-4.5

2%, 0

.29%

)(-1

5.98

%, 3

.78%

)(-9

.55%

, -3.

78%

)

12th

Gra

de

Dro

pou

t R

ate

Scor

e ch

ange

r sta

tes a

s co

ntro

l gro

up

95%

CI (

Conl

ey-T

aber

)(-6

.62%

, -0.

79%

)(-4

.72%

, 1.5

4%)

(-1.2

3%, 3

.87%

)(-1

1.18

%, -

1.62

%)

90%

CI (

Conl

ey-T

aber

)(-6

.12%

, -1.

28%

)(-4

.33%

, 1.0

8%)

(-1.0

6%, 2

.49%

)(-1

0.15

%, -

2.22

%)

Trea

tmen

t Effe

ct-2

.17%

0.07

%-3

.30%

-5.8

2%95

% C

I (H

uber

-Whi

te)

(-4.2

9%, 0

.05%

)(-2

.76%

, 2.9

0%)

(-8.4

8%, 1

.87%

)(-8

.04%

, -3.

61%

)95

% C

I (Co

nley

-Tab

er)

(-4.3

7%, 0

.13%

)(-3

.65%

, 1.9

5%)

(-7.5

6%, 4

.04%

)(-7

.69%

, 6.7

0%)

90%

CI (

Conl

ey-T

aber

)(-3

.94%

, -0.

13%

)(-2

.06%

, 1.7

7%)

(-5.9

7%, 2

.53%

)(-7

.47%

, 1.2

7%)

Trea

tmen

t Effe

ct-2

.93%

-1.2

8%-4

.76%

-5.9

8%95

% C

I (H

uber

-Whi

te)

(-4.2

9%, -

1.57

%)

(-3.3

0%, 0

.74%

)(-8

.63%

, -0.

90%

)(-7

.05%

, -4.

92%

)

Sout

hern

stat

es o

nly

Exc

ludi

ng st

ates

that

ch

ange

d m

inim

um a

ge

id

d95

% C

I (H

uber

Whi

te)

(4.2

9%,

1.57

%)

(3.3

0%, 0

.74%

)(8

.63%

, 0.

90%

)(7

.05%

, 4.

92%

)95

% C

I (Co

nley

-Tab

er)

(-6.4

1%, -

0.46

%)

(-3.8

5%, 1

.67%

)(-9

.84%

, 1.5

2%)

(-9.9

7%, 1

.32%

)90

% C

I (Co

nley

-Tab

er)

(-5.5

7%, -

0.91

%)

(-3.2

1%, 1

.07%

)(-8

.86%

, 1.1

5%)

(-8.4

5%, 0

.29%

)

requ

ired

to d

rop

out

Not

e: Th

e fu

ll re

gres

sion

spec

ifica

tions

are

pre

sent

ed in

the

web

app

endi

x. U

nles

s oth

erw

ise st

ated

the

mod

el is

estim

ated

usin

g O

LS. S

tate

15-

17 y

ear o

ld p

opul

atio

ns

(by

race

for r

eleva

nt re

gres

sions

) are

use

d as

weig

hts.

The

estim

ate

repo

rted

abov

e is

the

inte

ract

ion

betw

een

the

treat

men

t sta

te d

umm

y an

d th

e po

st p

erio

d du

mm

y, w

here

the

treat

men

t sta

te d

umm

y is

equa

l to

1 fo

r tre

atm

ent s

tate

s and

the

post

per

iod

dum

my

is eq

ual t

o 1

for t

he y

ears

199

8-20

00, o

ther

wise

bot

h du

mm

ies a

re e

qual

to 0

. Sta

tes w

ith fe

wer

than

two

obse

rvat

ions

per

per

iod

are

drop

ped

for "

all ra

ces"

regr

essio

ns. S

tate

s with

few

er th

an tw

o ob

serv

atio

ns p

er p

erio

d fo

r any

of t

he

drop

out r

ate

mea

sure

s by

race

are

dro

pped

for b

y ra

ce re

gres

sions

. Tre

atm

ent s

tate

s are

thos

e st

ates

that

wer

e re

quire

d to

elim

inat

e th

e an

d/or

scor

e op

tion.

The

se

inclu

de: L

A, M

S, N

E, N

M, T

X. U

nles

s oth

erw

ise st

ated

con

trol s

tate

s are

thos

e th

at w

ere

not r

equi

red

to ra

ise th

eir G

ED

min

imum

scor

e re

quire

men

t. Th

ese

inclu

de:

AR,

CA

, CO

, DE

, DC,

FL,

ID, K

Y, M

D, M

O, N

J, N

Y, N

D, O

K, O

R, S

D, U

T, W

A, W

V, W

I. Fr

om th

ese

stat

es th

e fo

llow

ing

had

to b

e dr

oppe

d fr

om th

e "b

y ra

ce"

regr

essio

ns d

ue to

miss

ing

and

nega

tive

drop

out r

ates

: AR,

ID, K

Y, M

O, N

D, N

J, N

Y, S

D, U

T, W

A, W

V. T

he st

ate

of N

J is a

lso d

ropp

ed fr

om th

e "a

ll ra

ces"

g

gg

p,

,,

,,

J,,

,,

,J

ppre

gres

sions

. Sco

re c

hang

er st

ates

are

thos

e st

ates

that

wer

e re

quire

d to

raise

their

min

imum

scor

e re

quire

men

t fro

m 3

5 to

40

in 1

997.

The

se in

clude

: AK

, AL,

AZ

, CT,

G

A, H

I, IA

, IL,

IN, K

S, M

A, M

E, M

I, M

N, M

T, N

C, N

H, N

V, O

H, P

A, R

I, SC

, TN

, VA

, VT,

WY

. Fro

m th

ese

stat

es th

e fo

llow

ing

are

drop

ped

due

to m

issin

g an

d ne

gativ

e dr

opou

t rat

es: A

L, A

Z, I

A, M

E, M

N, M

T, N

H, S

C, T

N, V

T, W

Y. N

o tre

atm

ent s

tate

s are

dro

pped

from

any

of t

he re

gres

sions

. Sta

tes t

hat c

hang

ed th

e m

inim

um a

ge re

quire

d to

dro

p ou

t inc

lude

: DC

(from

orig

inal

cont

rol g

roup

), M

S an

d N

M (b

oth

from

trea

tmen

t gro

up).

Stat

es th

at c

hang

ed e

ither

scho

ol le

avin

g or

G

ED

age

requ

irem

ents

inclu

de:

AR,

DC,

KY

, MO

, OK

, OR,

SD

, UT,

WI (

from

orig

inal

cont

rol g

roup

) and

MS,

NE

and

NM

(fro

m tr

eatm

ent g

roup

).

Note

:T

he

full

regre

ssio

nsp

ecifi

cati

on

sare

pre

sente

din

the

Web

Ap

pen

dix

.U

nle

ssoth

erw

ise

state

dth

em

od

elis

esti

mate

du

sin

gO

LS

.S

tate

15-1

7yea

rold

pop

ula

tion

s(b

y

race

for

rele

vant

regre

ssio

ns)

are

use

das

wei

ghts

.T

he

esti

mate

rep

ort

edab

ove

isth

ein

tera

ctio

nb

etw

een

the

trea

tmen

tst

ate

du

mm

yan

dth

ep

ost

per

iod

du

mm

y,w

her

eth

e

trea

tmen

tst

ate

du

mm

yis

equ

al

to1

for

trea

tmen

tst

ate

san

dth

ep

ost

per

iod

du

mm

yis

equ

al

to1

for

the

yea

rs1998-2

000,

oth

erw

ise

both

du

mm

ies

are

equ

al

to0.

Sta

tes

wit

h

few

erth

an

two

ob

serv

ati

on

sp

erp

erio

dare

dro

pp

edfo

r“all

race

s”re

gre

ssio

ns.

Sta

tes

wit

hfe

wer

than

two

ob

serv

ati

on

sp

erp

erio

dfo

rany

of

the

dro

pou

tra

tem

easu

res

by

race

are

dro

pp

edfo

rby

race

regre

ssio

ns.

Tre

atm

ent

state

sare

those

state

sth

at

wer

ere

qu

ired

toel

imin

ate

the

an

d/or

score

op

tion

.T

hes

ein

clu

de:

LA

,M

S,

NE

,N

M,

TX

.U

nle

ss

oth

erw

ise

state

dco

ntr

ol

state

sare

those

that

wer

en

ot

requ

ired

tora

ise

thei

rG

ED

min

imu

msc

ore

requ

irem

ent.

Th

ese

incl

ud

e:A

R,

CA

,C

O,

DE

,D

C,

FL

,ID

,K

Y,

MD

,M

O,

NJ,

NY

,N

D,

OK

,O

R,

SD

,U

T,

WA

,W

V,

WI.

Fro

mth

ese

state

sth

efo

llow

ing

had

tob

ed

rop

ped

from

the

”by

race

”re

gre

ssio

ns

du

eto

mis

sin

gan

dn

egati

ve

dro

pou

tra

tes:

AR

,ID

,K

Y,

MO

,N

D,

NJ,

NY

,S

D,

UT

,W

A,

WV

.T

he

state

of

NJ

isals

od

rop

ped

from

the

”all

race

s”re

gre

ssio

ns.

Sco

rech

an

ger

state

sare

those

state

sth

at

wer

ere

qu

ired

to

rais

eth

eir

min

imu

msc

ore

requ

irem

ent

from

35

to40

in1997.

Thes

ein

clu

de:

AK

,A

L,

AZ

,C

T,

GA

,H

I,IA

,IL

,IN

,K

S,

MA

,M

E,

MI,

MN

,M

T,

NC

,N

H,

NV

,O

H,

PA

,R

I,S

C,

TN

,V

A,

VT

,W

Y.

Fro

mth

ese

state

sth

efo

llow

ing

are

dro

pp

edd

ue

tom

issi

ng

an

dn

egati

ve

dro

pou

tra

tes:

AL

,A

Z,

IA,

ME

,M

N,

MT

,N

H,

SC

,T

N,

VT

,W

Y.

No

trea

tmen

t

state

sare

dro

pp

edfr

om

any

of

the

regre

ssio

ns.

Sta

tes

that

chan

ged

the

min

imu

mage

requ

ired

tod

rop

ou

tin

clu

de:

DC

(fro

mori

gin

al

contr

ol

gro

up

),M

San

dN

M(b

oth

from

trea

tmen

tgro

up

).S

tate

sth

at

chan

ged

eith

ersc

hool

leavin

gor

GE

Dage

requ

irem

ents

incl

ud

e:A

R,

DC

,K

Y,

MO

,O

K,

OR

,S

D,

UT

,W

I(f

rom

ori

gin

al

contr

ol

gro

up

)an

dM

S,

NE

an

dN

M(f

rom

trea

tmen

tgro

up

).

19

Page 59: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

in the text for nearly all groups. The one exception is that the white upper level dropout

estimate is now very small and statistically insignificant.

D.3 Excluding States that Changed Minimum Age Requirements

A number of states in both our treatment and control groups either raised or lowered the

minimum age for GED testing or the minimum age for school leaving during the period

under study. Our fixed effect model controls for these changes. Alternatively, we estimate

the model excluding these states to be sure that these changes are not driving our results.

In row 3 of Table D-1, we drop all states that changed the minimum school leaving age and

find that our estimates are robust to this alternate specification.

D.4 Excluding Additional Years from the Analysis

The change in test difficulty was implemented at the beginning of 1997, in the middle of the

1996-1997 school year. All regressions exclude 1996-1997 dropout rates as these would be the

number enrolled in 1996 who were not still enrolled or graduated in 1997. If the change was

well publicized, it may have lead to a rush of test takers trying to pass before the increase

in test difficulty. As a robustness check we exclude 1996 through 1998 from our regressions.

As shown in Figure D-2, excluding these years has little effect on the estimates. Similarly,

the 12th grade dropout rate is notably higher in 1994 than the other years. As shown in

Figure D-2, excluding 1994 has little effect on the estimates.

20

Page 60: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leD

-2:

Alt

ernat

ive

Yea

rSp

ecifi

cati

onfo

rC

han

gein

Tes

tD

ifficu

lty

Dep

end

ent

Var

iab

leA

ll R

aces

Wh

ites

Bla

cks

His

pan

ics

All

Rac

esW

hit

esB

lack

sH

isp

anic

sA

ll R

aces

Wh

ites

Bla

cks

His

pan

ics

-1.2

9%-0

.43%

-1.2

9%-2

.74%

-1.4

2%-0

.43%

-1.6

0%-3

.20%

-1.1

7%-0

.33%

-1.4

9%-2

.39%

(.37)

(.15)

(.98)

(.40)

(.50)

(.30)

(1.0

6)(.6

7)(.2

6)(.1

2)(.8

4)(.4

2)-0

.55%

0.00

%0.

09%

-1.3

8%-0

.57%

0.12

%-0

.02%

-1.8

1%-0

.64%

-0.1

1%-0

.62%

-0.9

9%(.5

4)(.4

5)(1

.61)

(.50)

(.65)

(.54)

(1.8

6)(.8

2)(.4

3)(.4

1)(1

.23)

(.58)

-2.9

5%-1

.32%

-4.8

4%-6

.16%

-3.3

0%-1

.58%

-5.7

0%-6

.67%

-2.3

9%-0

.72%

-3.6

3%-5

.95%

(.65)

(.88)

(1.8

2)(.4

6)(.8

3)(1

.14)

(2.3

5)(.8

3)(.6

5)(.9

4)(1

.63)

(.91)

-0.5

7%…

……

-0.5

5%-0

.53%

(.18)

……

…(.1

9)(.1

7)-0

.36%

……

…-0

.32%

-0.3

7%(.1

7)…

……

(.21)

(.18)

-0.7

7%…

……

-0.7

6%-0

.68%

(.25)

……

…(.2

7)(.2

2)

10th

-12t

h G

rade

D

ropo

ut R

ate

GE

D T

estin

g Ra

te

Age

s 18-

19

The

year

199

7 is

exclu

ded

from

all

regr

essio

ns a

s was

don

e in

the

orig

inal

pape

r.

Exc

lud

ing

1994

Not

e: H

uber

-Whi

te ro

bust

stan

dard

err

ors a

re in

par

enth

eses

(clu

ster

ed b

y st

ate)

. Mod

el is

estim

ated

usin

g O

LS. S

tate

15-

17 y

ear o

ld p

opul

atio

ns b

y ra

ce a

re u

sed

as w

eight

s. Th

e es

timat

e re

porte

d ab

ove

is th

e in

tera

ctio

n be

twee

n th

e tre

atm

ent s

tate

dum

my

and

the

post

199

7 du

mm

y, w

here

the

treat

men

t sta

te d

umm

y is

equa

l to

1 fo

r tre

atm

ent s

tate

s and

th

e po

st 1

997

dum

my

is eq

ual t

o 1

for t

he y

ears

199

8-20

00, o

ther

wise

bot

h du

mm

ies a

re e

qual

to 0

. Sta

tes w

ith fe

wer

than

two

obse

rvat

ions

per

per

iod

are

drop

ped

for '

all ra

ces'

regr

essio

ns. S

tate

s with

few

er th

an tw

o ob

serv

atio

ns p

er p

erio

d fo

r any

of t

he d

ropo

ut ra

te m

easu

res b

y ra

ce a

re d

ropp

ed fo

r by

race

regr

essio

ns. T

reat

men

t sta

tes a

re th

ose

stat

es

that

wer

e re

quire

d to

elim

inat

e th

e an

d/or

scor

e op

tion.

The

se in

clude

: LA

, MS,

NE

, NM

, TX

. Con

trol s

tate

s are

thos

e th

at a

lread

y ha

d hi

gh e

noug

h st

anda

rds b

y 19

97. T

hese

in

clude

: AR,

CA

, CO

, DE

, DC,

FL,

ID, K

Y, M

D, M

O, N

J, N

Y, N

D, O

K, O

R, S

D, U

T, W

A, W

V, W

I. Co

ntro

l sta

tes d

ropp

ed fr

om 'a

ll ra

ces'

regr

essio

ns d

ue to

miss

ing

and

nega

tive

drop

out r

ates

inclu

de: N

J. Co

ntro

l sta

tes d

ropp

ed fr

om re

gres

sion

by ra

ce d

ue to

miss

ing

and

nega

tive

drop

out r

ates

inclu

de: A

R, ID

, KY

, MO

, ND

, NJ,

NY

, SD

, UT,

W

A, W

V. N

o tre

atm

ent s

tate

s are

dro

pped

.

10th

-11t

h G

rade

D

ropo

ut R

ate

12th

Gra

de

Dro

pout

Rat

eG

ED

Tes

ting

Rate

A

ges 1

6-19

GE

D T

estin

g Ra

te

Age

s 16-

17

Incl

ud

ing

all Y

ears

Exc

lud

ing

1996

an

d 1

998

21

Page 61: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

D.5 Extending the GED Testing and Dropout Rate Trends

When we extend the times series of GED testing and dropout rates on both sides of 1997, we

obtain results that support the analysis in the main text. Prior to the increase in standards,

the GED test-taking rate is higher in treatment states compared to control states. For

the higher grade levels, dropout rates are higher in control states compared to treatment

states prior to the introduction of the new standards but are lower afterwards. The effect is

particularly strong for the 12th grade dropout rate. The breaks in the trends around 1997

are evident for the student pools more eligible to take the GED.

22

Page 62: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Fig

ure

D-1

:G

ED

Tes

ting

and

Dro

pou

tR

ates

By

Yea

r,T

reat

men

tvs.

Con

trol

Sta

tes

(exte

nded

year

s)

23

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E Fixed Effect Estimates of the Effect of Increasing

Passing Standards

One difficulty in isolating the effect of changes in GED passing standards on dropout rates

is that both minimum school leaving age requirements and GED testing age requirements

changed in the sample period under study (See Table E-1). During our sample period, three

of the five states in our treatment group both raised and lowered their GED minimum age

requirement. Two of these three states also raised the minimum age at which students can

drop out of school. States included in our control group also made changes in their age

requirements.

To control for these potentially confounding changes in age requirements and other

sources of variation across states, we estimate a state fixed-effect regression. The model

is

Yi,t = γ(Dtreat ·Dpost 97) + πDpost 97 + θi + ψXi,t + εi,t

where Yi,t is the dropout rate for state i in year t and Dtreat and Dpost 97 are defined as

Dtreat = {1 if the state eliminated the and/or GED score option in 19970 if the state was not required to raise GED standards in 1997

Dpost 97 = {1 if 1998 ≤ year ≤ 20000 otherwise .

The θi are time-invariant state level fixed effects and the Xi,t are control variables that

vary by states over time. These include dummy indicators for both the minimum age required

to take the GED and the minimum age required to drop out of school, as well as measures

of state level unemployment rates and per capita income to control for changes in labor

market conditions during the sample period.1 The parameter of interest is γ, which is the

conditional difference-in-difference estimate of the treatment effect of the reform in GED

1See Table E-3 for the summary statistics of all variables used in these models. We do not control for highstakes testing because no treatment or control states implemented or changed testing requirements duringthe sample period.

24

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Tab

leE

-1:

Chan

ges

inG

ED

Tes

ting

and

Man

dat

ory

Sch

ool

ing

Age

Req

uir

emen

tsby

Tre

atm

ent

Sta

tus,

1994

-200

0

Pol

icy

Ch

ange

Tre

atm

ent

Gro

up

Con

trol

Gro

up

Raise

d M

inim

um G

ED

Age

Re

quire

men

tM

S (1

7 to

18,

199

7), N

E (1

6 to

18,

199

8),

NM

(16

to 1

7, 2

000)

.

AR

(16

to 1

8, 2

000)

, KY

(16

to 1

9 ,1

997

and

200

0),

MO

(16

to 1

8, 1

997)

, OK

(16

to 1

8, 1

997

and

2000

), O

R (1

6 to

18,

200

0), S

D (1

7 to

19,

199

7 an

d 16

to 1

8,

1999

), U

T (1

7 to

18,

199

7 an

d 20

00),

WI (

18 to

18.

5,

1999

).

Low

ered

Min

imum

GE

D A

ge

Requ

irem

ent

MS

(18

to 1

6, 2

000)

, NE

(17

to 1

6, 1

995)

, N

M (1

8 to

16,

199

9).

KY

(19

to 1

6, 1

999)

, MO

(18

to 1

6, 1

995)

, OK

(18

to

16, 1

995

and

1999

), O

R (1

8 to

16,

199

9), S

D (1

8 to

17

, 199

5 an

d 19

to 1

6, 1

998)

, UT

(18

to 1

7, 1

995

and

1999

), W

I (18

.5 to

18,

199

5).

Raise

d M

inim

um S

choo

l Le

avin

g A

ge R

equi

rem

ent

MS

(16

to 1

7, 1

997)

, NM

(16

to 1

8, 1

997)

.D

C (1

7 to

18,

199

7).

Low

ered

Min

imum

Lea

ving

A

ge R

equi

rem

ent

Non

e.N

one.

Not

e: Th

e ye

ar o

f cha

nge

as w

ell a

s the

initi

al an

d fin

al va

lue

for t

he a

ge re

quirm

ent a

re re

porte

d in

par

enth

eses

.

Sour

ce: G

ED

Tes

ting

Serv

ice A

nnua

l Rep

orts

: "W

ho T

ook

the

GE

D?"

(var

ious

yea

rs) a

nd D

iges

t of E

duca

tion

Stat

istics

(var

ious

ye

ars)

.

25

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standards on the high school dropout rate.

Weighted OLS estimates of γ from the full model both controlling and not controlling for

changes in minimum age requirements are summarized in Table E-2.2 The other parameter

estimates are available in Table G-27. Using the full specification, the overall effect of

the reform is a 1.3 percentage point reduction in the dropout rate in treatment states.

The estimated effect on the upper level dropout rate remains close to 3 percentage points

and is statistically significant. The estimated effect on the overall lower level dropout rate

remains small and statistically insignificant. In general, the estimates including state level

fixed effects but not controlling for changes in minimum age requirements are smaller than

estimates based on the full specification. The regression-adjusted dropout and GED testing

rate estimates are for the most part smaller but in close agreement with the unadjusted

estimates reported in the text.

The fixed effects estimates by race are consistent with the unadjusted estimates as well.

Again, the estimated treatment effect is greater for minorities compared to whites. As is true

of the estimates reported in the text, the largest effect is on the upper level dropout rate.

Increasing GED passing requirements decreased the upper level dropout rate in treatment

states by 1.3 percentage points for whites, 4.8 percentage points for blacks and 6.2 percentage

points for Hispanics.

2GLS estimates of the model are also available in the Web Appendix and match those reported in thetext. The results also hold with serially correlated errors.

26

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Tab

leE

-2:

Wei

ghte

dO

LS

Fix

edE

ffec

tsE

stim

ates

ofth

eIm

pac

tof

the

1997

GE

DR

efor

mon

Var

ious

Dro

pou

tR

ate

Mea

sure

s

Dep

en

den

t V

ari

ab

leA

ll R

aces

Wh

ites

Bla

ck

sH

isp

an

ics

All

Races

Wh

ites

Bla

ck

sH

isp

an

ics

Tre

atm

ent

Eff

ect

-1.2

1%

-0.4

7%

-0.8

3%

-2.6

8%

-1.2

9%

-0.4

3%

-1.2

9%

-2.7

4%

95%

CI

Hub

er-W

hit

e Sta

nd

ard

Err

ors

(-1.9

4%

, -0

.48%

)(-

0.8

0%

, -0

.13%

)(-

2.8

6%

, 1.1

2%

)(-

3.6

1%

, -1

.75%

)(-

2.0

6%

, -0

.53%

)(-

0.7

6%

, -0

.11%

)(-

3.4

0%

, 0.8

3%

)(-

3.6

0%

, -1

.89%

)

95%

CI

Co

nle

y-T

aber

Sta

nd

ard

Err

ors

(-2.0

6%

, 0.2

5%

)(-

0.7

5%

, 1.7

4%

)(-

2.0

2%

, 4.7

7%

)(-

10.7

7%

, 1.1

0%

)(-

2.1

4%

, -0

.37%

)(-

0.7

5%

, 0.8

4%

)(-

2.8

0%

, 1.5

5%

)(-

5.6

9%

, -1

.09%

)

90%

CI

Co

nle

y-T

aber

Sta

nd

ard

Err

ors

(-1.9

1%

, -0

.01%

)(-

0.6

8%

, 1.3

6%

)(-

1.6

1%

, 3.6

9%

)(-

9.4

2%

, 0.4

3%

)(-

1.9

9%

, -0

.51%

)(-

0.6

8%

, 0.6

4%

)(-

2.5

4%

, 1.0

6%

)(-

5.2

1%

, -1

.46%

)

Tre

atm

ent

Eff

ect

-0.4

6%

-0.0

2%

0.3

7%

-1.3

8%

-0.5

5%

0.0

0%

0.0

9%

-1.3

8%

95%

CI

Hub

er-W

hit

e Sta

nd

ard

Err

ors

(-1.5

3%

, 0.6

0%

)(-

0.9

6%

, 0.9

1%

)(-

2.8

3%

, 3.5

7%

)(-

2.6

7%

, -0

.095%

)(-

1.6

7%

, 0.5

7%

)(-

0.9

7%

, 0.9

7%

)(-

3.3

8%

, 3.5

7%

)(-

2.4

6%

, -0

.31%

)

95%

CI

Co

nle

y-T

aber

Sta

nd

ard

Err

ors

(-1.5

4%

, 1.1

1%

)(-

0.7

6%

, 1.8

9%

)(-

2.0

8%

, 8.9

9%

)(-

11.3

3%

, 2.9

5%

)(-

1.6

1%

, 0.5

9%

)(-

0.7

6%

, 1.0

0%

)(-

2.3

7%

, 4.7

4%

)(-

6.0

7%

, 0.3

9%

)

90%

CI

Co

nle

y-T

aber

Sta

nd

ard

Err

ors

(-1.3

8%

, 0.8

5%

)(-

0.6

3%

, 1.5

1%

)(-

1.5

1%

, 7.3

4%

)(-

9.9

0%

, 2.2

0%

)(-

1.4

1%

, 0.3

9%

)(-

0.6

3%

, 0.8

1%

)(-

2.0

9%

, 3.8

4%

)(-

5.3

1%

, -0

.02%

)

Tre

atm

ent

Eff

ect

-2.8

6%

-1.3

8%

-4.0

2%

-5.9

9%

-2.9

5%

-1.3

2%

-4.8

4%

-6.1

6%

95%

CI

Hub

er-W

hit

e Sta

nd

ard

Err

ors

(-4.2

5%

, -1

.47%

)(-

3.1

4%

, 0.3

8%

)(-

7.8

3%

, -0

.21%

)(-

6.6

4%

, -5

.34%

)(-

4.3

0%

, -1

.60%

)(-

3.2

3%

, 0.5

9%

)(-

8.7

6%

, -0

.91%

)(-

7.5

2%

, -5

.16%

)

95%

CI

Co

nle

y-T

aber

Sta

nd

ard

Err

ors

(-5.1

9%

, -1

.04%

)(-

2.8

2%

, 0.8

4%

)(-

7.9

1%

, 2.4

7%

)(-

7.9

0%

, 0.0

0%

)(-

5.1

8%

, -1

.14%

)(-

2.8

5%

, 0.4

5%

)(-

9.0

1%

, 0.2

9%

)(-

7.5

6%

, 0.3

4%

)

90%

CI

Co

nle

y-T

aber

Sta

nd

ard

Err

ors

(-4.8

0%

, -1

.31%

)(-

2.5

4%

, 0.4

8%

)(-

7.0

0%

, 1.5

6%

)(-

7.3

9%

, -0

.98%

)(-

4.8

6%

, -1

.40%

)(-

2.5

4%

, 0.2

1%

)(-

8.1

9%

, -0

.50%

)(-

7.1

1%

, -0

.52%

)

Tre

atm

ent

Eff

ect

-0.5

5%

……

…-0

.57%

……

95%

CI

Hub

er-W

hit

e Sta

nd

ard

Err

ors

(-0.8

7%

, -0

.23%

)(-

0.9

4%

, -0

.21%

)

95%

CI

Co

nle

y-T

aber

Sta

nd

ard

Err

ors

(-1.0

0%

, -

0.3

8%

)…

……

(-1.0

2%

, -0

.41%

)…

……

90%

CI

Co

nle

y-T

aber

Sta

nd

ard

Err

ors

(-0.9

4%

, -

0.4

2%

)…

……

(-0.9

5%

, -0

.46%

)…

……

Tre

atm

ent

Eff

ect

-0.3

4%

……

…-0

.36%

……

95%

CI

Hub

er-W

hit

e Sta

nd

ard

Err

ors

(-0.6

6%

, -0

.02%

)(-

0.7

1%

, -0

.023%

)

95%

CI

Co

nle

y-T

aber

Sta

nd

ard

Err

ors

(-1.0

7%

, -

0.1

4%

)…

……

(-1.0

7%

, -

0.1

7%

)…

……

90%

CI

Co

nle

y-T

aber

Sta

nd

ard

Err

ors

(-1.0

0%

, -

0.2

0%

)…

……

(-0.9

8%

, -

0.2

4%

)…

……

Tre

atm

ent

Eff

ect

-0.7

6%

……

…-0

.77%

……

95%

CI

Hub

er-W

hit

e Sta

nd

ard

Err

ors

(-1.2

0%

, -0

.32%

)(-

1.2

8%

, -0

.26%

)

95%

CI

Co

nle

y-T

aber

Sta

nd

ard

Err

ors

(-1.1

3%

, -

0.4

2%

)…

……

(-1.1

7%

, -

0.4

7%

)…

……

90%

CI

Co

nle

y-T

aber

Sta

nd

ard

Err

ors

(-1.0

5%

, -

0.4

7%

)…

……

(-1.0

8%

, -

0.5

1%

)…

……

No

te: C

on

ley-

Tab

er a

dju

sted

co

nfi

den

ce in

terv

als

are

in p

aren

thes

es. T

he

full r

egre

ssio

n s

pec

ific

atio

ns

are

pre

sen

ted

in

th

e w

eb a

pp

end

ix. U

nle

ss o

ther

wis

e st

ated

th

e m

od

el is

esti

mat

ed u

sin

g O

LS. Sta

te 1

5-1

7 y

ear

old

po

pula

tio

ns

(by

race

fo

r re

levan

t re

gres

sio

ns)

are

use

d a

s w

eigh

ts. T

he

esti

mat

e re

po

rted

ab

ove

is t

he

inte

ract

ion

bet

wee

n t

he

trea

tmen

t st

ate

dum

my

and

th

e p

ost

per

iod

dum

my,

wh

ere

the

trea

tmen

t st

ate

dum

my

is e

qual

to

1 f

or

trea

tmen

t st

ates

an

d t

he

po

st p

erio

d d

um

my

is e

qual

to

1 f

or

the

year

s 1998-2

000, o

ther

wis

e b

oth

dum

mie

s ar

e eq

ual

to

0. Sta

tes

wit

h f

ewer

th

an t

wo

ob

serv

atio

ns

per

per

iod

are

dro

pp

ed f

or

"all

race

s" r

egre

ssio

ns.

Sta

tes

wit

h f

ewer

th

an t

wo

ob

serv

atio

ns

per

per

iod

fo

r an

y o

f th

e d

rop

out

rate

mea

sure

s b

y ra

ce a

re d

rop

ped

fo

r b

y ra

ce r

egre

ssio

ns.

Tre

atm

ent

stat

es a

re t

ho

se s

tate

s th

at w

ere

requir

ed t

o e

lim

inat

e

the

and

/o

r sc

ore

op

tio

n. T

hes

e in

clud

e: L

A, M

S, N

E, N

M, T

X. U

nle

ss o

ther

wis

e st

ated

co

ntr

ol st

ates

are

th

ose

th

at w

ere

no

t re

quir

ed t

o r

aise

th

eir

GE

D m

inim

um

sco

re r

equir

emen

t. T

hes

e in

clud

e: A

R, C

A, C

O,

DE

, D

C, F

L, ID

, K

Y, M

D, M

O, N

J, N

Y, N

D, O

K, O

R, SD

, U

T, W

A, W

V, W

I. F

rom

th

ese

stat

es t

he

follo

win

g h

ad t

o b

e d

rop

ped

fro

m t

he

"by

race

" re

gres

sio

ns

due

to m

issi

ng

and

neg

ativ

e d

rop

out

rate

s: A

R, ID

,

KY

, M

O, N

D, N

J, N

Y, SD

, U

T, W

A, W

V. T

he

stat

e o

f N

J is

als

o d

rop

ped

fro

m t

he

"all r

aces

" re

gres

sio

ns.

Sco

re c

han

ger

stat

es a

re t

ho

se s

tate

s th

at w

ere

requir

ed t

o r

aise

th

eir

min

imum

sco

re r

equir

emen

t fr

om

35

to 4

0 in

1997. T

hes

e in

clud

e: A

K, A

L, A

Z, C

T, G

A, H

I, I

A, IL

, IN

, K

S, M

A, M

E, M

I, M

N, M

T, N

C, N

H, N

V, O

H, P

A, R

I, S

C, T

N, V

A, V

T, W

Y. F

rom

th

ese

stat

es t

he

follo

win

g ar

e d

rop

ped

due

to m

issi

ng

and

neg

ativ

e d

rop

out

rate

s: A

L, A

Z, IA

, M

E, M

N, M

T, N

H, SC

, T

N, V

T, W

Y. N

o t

reat

men

t st

ates

are

dro

pp

ed f

rom

an

y o

f th

e re

gres

sio

ns.

Sta

tes

that

ch

ange

d t

he

min

imum

age

req

uir

ed t

o d

rop

out

incl

ud

e: D

C (

fro

m

ori

gin

al c

on

tro

l gr

oup

), M

S a

nd

NM

(b

oth

fro

m t

reat

men

t gr

oup

). S

tate

s th

at c

han

ged

eit

her

sch

oo

l le

avin

g o

r G

ED

age

req

uir

emen

ts in

clud

e:

AR

, D

C, K

Y, M

O, O

K, O

R, SD

, U

T, W

I (f

rom

ori

gin

al c

on

tro

l gr

oup

)

and

MS, N

E a

nd

NM

(fr

om

tre

atm

ent

gro

up

).

Tab

le 5

. W

eigh

ted

OL

S F

ixed

Eff

ects

Est

imat

es o

f th

e Im

pac

t o

f th

e 1997 G

ED

Ref

orm

on

Var

ious

Dro

po

ut

Rat

e M

easu

res

No

t C

on

tro

llin

g f

or

Min

imu

m A

ge R

eq

uir

em

en

tsC

on

tro

llin

g f

or

Min

imu

m A

ge R

eq

uir

em

en

ts

10th

-12th

Gra

de

Dro

po

ut

Rat

e

10th

-11th

Gra

de

Dro

po

ut

Rat

e

12th

Gra

de

Dro

po

ut

Rat

e

GE

D T

esti

ng

Rat

e

Age

s 16-1

9

GE

D T

esti

ng

Rat

e

Age

s 16-1

7

GE

D T

esti

ng

Rat

e

Age

s 18-1

9

Note

:C

on

ley-T

ab

erad

just

edco

nfi

den

cein

terv

als

are

inp

are

nth

eses

.T

he

full

regre

ssio

nsp

ecifi

cati

on

sare

pre

sente

din

the

Web

Ap

pen

dix

.U

nle

ssoth

erw

ise

state

dth

em

od

el

ises

tim

ate

du

sin

gO

LS

.S

tate

15-1

7yea

rold

pop

ula

tion

s(b

yra

cefo

rre

levant

regre

ssio

ns)

are

use

das

wei

ghts

.T

he

esti

mate

rep

ort

edab

ove

isth

ein

tera

ctio

nb

etw

een

the

trea

tmen

tst

ate

du

mm

yan

dth

ep

ost

per

iod

du

mm

y,w

her

eth

etr

eatm

ent

state

du

mm

yis

equ

al

to1

for

trea

tmen

tst

ate

san

dth

ep

ost

per

iod

du

mm

yis

equ

al

to1

for

the

yea

rs1998-2

000,

oth

erw

ise

both

du

mm

ies

are

equ

al

to0.

Sta

tes

wit

hfe

wer

than

two

ob

serv

ati

on

sp

erp

erio

dare

dro

pp

edfo

r“all

race

s”re

gre

ssio

ns.

Sta

tes

wit

hfe

wer

than

two

ob

serv

ati

on

sp

erp

erio

dfo

rany

of

the

dro

pou

tra

tem

easu

res

by

race

are

dro

pp

edfo

rby

race

regre

ssio

ns.

Tre

atm

ent

state

sare

those

state

sth

at

wer

ere

qu

ired

toel

imin

ate

the

an

d/or

score

op

tion

.T

hes

ein

clu

de:

LA

,M

S,

NE

,N

M,

TX

.U

nle

ssoth

erw

ise

state

dco

ntr

ol

state

sare

those

that

wer

en

ot

requ

ired

tora

ise

thei

rG

ED

min

imu

msc

ore

requ

irem

ent.

Th

ese

incl

ud

e:A

R,

CA

,C

O,

DE

,D

C,

FL

,ID

,K

Y,

MD

,M

O,

NJ,

NY

,N

D,

OK

,O

R,

SD

,U

T,

WA

,W

V,

WI.

Fro

mth

ese

state

sth

efo

llow

ing

had

tob

ed

ropp

ed

from

the

”by

race

”re

gre

ssio

ns

du

eto

mis

sin

gan

dn

egati

ve

dro

pou

tra

tes:

AR

,ID

,K

Y,

MO

,N

D,

NJ,

NY

,S

D,

UT

,W

A,

WV

.T

he

state

of

NJ

isals

od

rop

ped

from

the

”all

race

s”re

gre

ssio

ns.

Sco

rech

an

ger

state

sare

those

state

sth

at

wer

ere

qu

ired

tora

ise

thei

rm

inim

um

score

requ

irem

ent

from

35

to40

in1997.

Thes

ein

clu

de:

AK

,A

L,

AZ

,C

T,

GA

,H

I,IA

,IL

,IN

,K

S,

MA

,M

E,

MI,

MN

,M

T,

NC

,N

H,

NV

,O

H,

PA

,R

I,S

C,

TN

,V

A,

VT

,W

Y.

Fro

mth

ese

state

sth

efo

llow

ing

are

dro

pp

edd

ue

tom

issi

ng

an

dn

egati

ve

dro

pou

tra

tes:

AL

,A

Z,

IA,

ME

,M

N,

MT

,N

H,

SC

,T

N,

VT

,W

Y.

No

trea

tmen

tst

ate

sare

dro

pp

edfr

om

any

of

the

regre

ssio

ns.

Sta

tes

that

chan

ged

the

min

imu

mage

requ

ired

tod

rop

ou

tin

clu

de:

DC

(fro

mori

gin

al

contr

ol

gro

up

),M

San

dN

M(b

oth

from

trea

tmen

tgro

up

).S

tate

sth

at

chan

ged

eith

ersc

hool

leavin

gor

GE

Dage

requ

irem

ents

incl

ud

e:

AR

,D

C,

KY

,M

O,

OK

,O

R,

SD

,U

T,

WI

(fro

mori

gin

al

contr

ol

gro

up

)an

dM

S,

NE

an

dN

M(f

rom

trea

tmen

tgro

up

).

27

Page 67: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Table E-3: Summary Statistics of Variables Used in the Analysis

Mean N Mean N Mean N Mean N

10th-12th Grade Dropout Rate

Overall .105 .090 .100 .098

(.019) (.021) (.033) (.032)

Whites .079 .070 .086 .082

(.019) (.019) (.029) (.030)

Blacks .140 .124 .158 .152

(.012) (.018) (.041) (.044)

Hispanics .142 .109 .158 .143

(.020) (.019) (.018) (.014)

10th-11th Grade Dropout Rate

Overall .112 .105 .105 .102

(.022) (.023) (.041) (.043)

Whites .089 .085 .086 .082

(.024) (.023) (.037) (.042)

Blacks .140 .134 .170 .160

(.019) (.015) (.042) (.051)

Hispanics .152 .133 .165 .143

(.025) (.020) (.025) (.021)

12th Grade Dropout Rate

Overall .088 .052 .095 .088

(.016) (.025) (.034) (.035)

Whites .057 .036 .086 .079

(.016) (.018) (.034) (.032)

Blacks .139 .099 .124 .129

(.019) (.035) (.058) (.039)

Hipsanics .114 .049 .138 .143

(.019) (.024) (.033) (.036)

GED Testing Rate

Ages 16-19 0.031 0.027 0.020 0.021

(.007) (.005) (.007) (.008)

Ages 16-17 0.026 0.025 0.014 0.015

(.006) (.005) (.009) (.009)

Ages 18-19 .036 .029 .026 .027

(.009) (.007) (.007) (.009)

Time Varying Covariates

Minimum dropout age 16.78 17.00 16.92 16.92

(.425) (.347) (.991) (.993)

Minimum GED testing age 17.65 17.73 17.71 17.88

(.569) (.564) (1.031) (.937)

Log per capita income 9.91 10.12 10.07 10.27

(.087) (.114) (.133) (.143)

Local unemployment rate .062 .047 .062 .046

(.010) (.007) (.014) (.009)

15

57

57

57

57

57

57

57

57

57

14

14

15

15

15

15

15

15

14

15

15

57

57

15

15 57

57

15 26 26

14 15 27 26

57

26

14 15 27 27

15 15 56 56

15 15 26

26

15 15 27 27

15 15

15 15

27

57

27

27

27

57 57

15

15

27

27

27

Note: Standard deviations in parentheses. The dropout rate is defined as the ratio of students enrolled in a given

grade(s) in year t and the number of students enrolled in the previous grade(s) in year t-1, where t = 1994-2000.

Enrollment data by grade are from the Common Core of Data (CCD). Minimum age required to drop out of school are

from the Digest of Education Statistics (several years). Minimum age required to take the GED are from the yearly

reports published by the GED Testing Service: "Who Took the GED?" (several years). Local unemployment rates are

computed using monthly data from the Bureau of Labor Statistics. Log of per capita income are computed using data

from the Census Bureau. All calculations are weighted by the 15-17 year old population in each state.

Table A-1. Summary Statistics of Variables Used in the Anlaysis

Treatment Group States Control Group States

Pre-1997

(N=15)

Post-1997

(N=15)

Pre-1997

(N=57)

Post-1997

(N=57)

57

15

15

15

15

15

15

15

Note: Standard deviations in parentheses. The dropout rate is defined as the ratio of students enrolled in a given grade(s) in

year t and the number of students enrolled in the previous grade(s) in year t−1, where t= 1994-2000. Enrollment data by grade

are from the Common Core of Data (CCD). Minimum age required to drop out of school are from the Digest of Education

Statistics (several years). Minimum age required to take the GED are from the yearly reports published by the GED Testing

Service: ”Who Took the GED?” (several years). Local unemployment rates are computed using monthly data from the Bureau

of Labor Statistics. Log of per capita income are computed using data from the Census Bureau. All calculations are weighted

by the 15-17 year old population in each state. 28

Page 68: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

F Supplementary Material for the Analysis of the GED

Option Program

29

Page 69: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Fig

ure

F-1

:M

edia

nD

ays

ofE

nro

llm

ent

inG

ED

Opti

on,

by

Sta

te:

2008

–09

Sch

ool

Yea

r

75

68

101

87

New

 Ham

pshire (N

=0)

Oregon (N=2,276)

Tenn

essee (N=375)

Texas (N=773)

Virginia (N

=3,044)

Wisconsin (N

=o)

r of GED Option Candidates)

Med

ian Days of Enrollm

ent in GED

 Option, by State: 2008‐09

 Schoo

l Year

Med

ian Num

ber o

f Days 

of Enrollm

ent o

f GED

 Option Cand

idates: 105

NA NA

168

72

217

99

94

050

100

150

200

250

Florida (N=3,755)

Kentucky (N

=70)

Louisiana (N=1,186)

Mississippi (N

=1,018)

Missouri (N=2,117)

Med

ian Num

ber o

f Days

State (Numbe

Sou

rce:

GE

DO

pti

onS

tati

stic

alR

epor

t(2

009)

.

30

Page 70: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Fig

ure

F-2

:M

edia

nP

repar

atio

nH

ours

ofG

ED

Opti

onC

andid

ates

,by

Sta

te:

2008

–09

Sch

ool

Yea

r

Med

ian Prep

aration Hou

rs of G

ED Option Ca

ndidates, by State: 2008‐09

 Scho

ol Year

60

50

Virginia (N

=2,663

)

Wisconsin (N

=2,565

)Med

ian Num

ber of 

Prep

arationHou

rs of G

ED 

Option Cand

idates: 80

50

60

Tenn

essee (N=426

)

Texas (N=495

)

Candidates)

45

20

New

 Ham

pshire (N

=65)

Oregon (N=1,927

)

r of GED Option C

150

120

137

Louisiana(N

111

7)

Mississippi (N

=1,053

)

Missouri (N=2,150

)

State (Numbe

79

75

150

Florida(N=2

614)

Kentucky (N

=61)

Louisiana (N=1,117

)

79

020

4060

8010

012

014

016

0

Florida (N

2,61

4)

Med

ian Num

ber o

f Hou

rs

Sou

rce:

GE

DO

pti

onS

tati

stic

alR

epor

t(2

009)

.

31

Page 71: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Fig

ure

F-3

:N

inth

Gra

de

Coh

ort

Gra

duat

ion

Sta

tus

ofG

ED

Opti

onC

andid

ates

,by

Sta

te:

2008

–09

Sch

ool

Yea

r

Ninth Grade

 Coh

ort G

radu

ation Status of G

ED Option Ca

ndidates, by 

State: 2008‐09

 Schoo

l Year

83.8%

84.2%

Wisconsin (N

=3,612

)

GED

 Option Total

95.5%

78.1%

91.8%

Tenn

essee (N=443

)

Texas (N=517

)

Virginia (N

=3,187

)

Candidates)

82.7%

New

 Ham

pshire (N

=NA)

Oregon (N=2,409

)

()

er of GED Option 

NA

86.0%

88.6%

72.5%

Louisiana (N=1,258

)

Mississippi (N

=1,132

)

Missouri (N=2,425

)

State (Numbe

84.0%89

.6%

Florida (N=3,767

)

Kentucky (N

=67)

0%20

%40

%60

%80

%10

0%12

0%

Percen

t Did Not Gradu

ate Ye

t

Sou

rce:

GE

DO

pti

onS

tati

stic

alR

epor

t(2

009)

.

32

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Tab

leF

-1:

Sta

tes

Issu

ing

Cre

den

tial

sIn

dis

tingu

ishab

lefr

omH

igh

Sch

ool

Dip

lom

as(2

008)

State

Cred

ential Title

Arkansas

Arkansas High Scho

ol Diploma

Conn

ecticut

Conn

ecticut State High Scho

ol Diploma

Florida

State of Florida

 High Scho

ol Diploma

Haw

aii

High Scho

ol Diploma

Kansas

Kansas State High Scho

ol Diploma

Maryland

Maryland High Scho

ol Diploma

New

 Jersey

New

 Jersey State Issued

 High Scho

ol Diploma

New

 Mexico

New

 Mexico High Scho

ol Diploma

Oklahom

aOklahom

a High Scho

ol Diploma

Penn

sylvania

Common

wealth

 Secon

dary Schoo

l Diploma

Source: G

ED Statistical Rep

ort 2

008

Not

es:

Incl

ud

esye

aran

dd

istr

ict

bac

kgr

oun

dch

ara

cter

isti

csan

dco

vari

ate

s.

33

Page 73: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Fig

ure

F-4

:T

he

Eff

ect

ofR

egula

rSch

ool

sO

pti

onP

rogr

amon

Hig

hSch

ool

Coh

ort

Com

ple

tion

Rat

es.

1.1%

1.0%

1.5%

2%3%4%eter Rates

0%1%2%

or Other Comple

-3%

-2%

-1%

hort Diploma o

‐3.0%

-5%

-4%

-3%

t Change in Coh

‐3.8%

‐3.6%

-7%

-6%

Dip

lom

a R

ate

(8th

)D

iplo

ma

Rat

e (9

th)

Dip

lom

a R

ate

(10t

h)

Percen

Dip

lom

as (O

ptio

n In

Nor

mal

Sch

ools

)O

ther

Com

plet

ers

(Opt

ion

In N

orm

al S

choo

ls)

Sou

rce:

Nati

on

al

Cen

ter

for

Ed

uca

tion

Sta

tist

ics,

Com

mon

Core

Data

an

dO

regon

Sch

ool

Dis

tric

tsA

dm

inis

trati

ve

Data

.N

ote

s:C

oh

ort

com

ple

tion

rate

sare

defi

ned

as

the

nu

mb

erof

dip

lom

as

issu

edd

ivid

edby

8th

,9th

,or

10th

gra

de

enro

llm

ent

lagged

the

ap

pro

pri

ate

nu

mb

erof

yea

rs.

We

show

coh

ort

com

ple

tion

rate

sfo

r8th

,9th

,an

d10th

gra

de

as

ach

eck

of

rob

ust

nes

s.T

he

defi

nit

ion

of

oth

erco

mp

lete

rsin

clu

des

stu

den

tsw

ho

GE

Dce

rtif

yth

rou

gh

ad

istr

ict

or

state

san

ctio

ned

cert

ifica

tion

pro

gra

m,

an

dth

us

shou

ldca

ptu

rest

ud

ents

wh

oG

ED

cert

ify

thro

ugh

the

GE

DO

pti

on

pro

gra

m.

Ore

gon

was

gra

nte

dp

erm

issi

on

tooff

erth

eG

ED

Op

tion

by

the

Am

eric

an

Cou

nci

lon

Ed

uca

tion

in2001,

bu

tn

osc

hools

imp

lem

ente

dp

rogra

ms

unti

lth

e2001-2

002

sch

ool

yea

r.R

egre

ssio

ns

incl

ud

eco

ntr

ols

for

per

cent

bla

cken

rollm

ent,

per

cent

His

pan

icen

rollm

ent,

per

cent

free

lun

chel

igib

le,

per

cent

free

or

red

uce

dlu

nch

elig

ible

,p

up

ilte

ach

erra

tio,

exp

end

itu

res

per

pu

pil,

reven

ue

per

pu

pil,

an

dd

istr

ict

an

dyea

rfi

xed

effec

ts.

Reg

ress

ion

sin

clu

de

2001-2

002

sch

ool

yea

rth

rou

gh

2007-2

008

sch

ool

yea

r.A

nalt

ern

ati

ve

Op

tion

pro

gra

mis

defi

ned

as

on

eth

at

was

not

pre

sent

intr

ad

itio

nal

hig

hsc

hools

,b

ut

on

lyin

com

mu

nit

y

colleg

esor

oth

erin

stit

uti

on

s.E

rror

bars

show

stan

dard

erro

rs.

34

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Fig

ure

F-5

:D

escr

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35

Page 75: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Fig

ure

F-6

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36

Page 76: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leF

-2:

The

Eff

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0.0

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0.01

37

Page 77: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leF

-3:

The

Eff

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38

Page 78: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leF

-4:

The

Eff

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39

Page 79: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leF

-5:

The

Eff

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Page 80: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leF

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Page 81: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leF

-7:

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42

Page 82: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

G Additional Supplementary Materials

43

Page 83: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

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rnia

U.S

. (E

xclu

din

g C

alif

orn

ia)

No

tes:

Auth

ors

' cal

cula

tio

ns

bas

ed o

n N

CE

S d

ata.

Th

e gr

aduat

ion

rat

e is

th

e n

um

ber

of

regu

lar

pub

lic a

nd

pri

vat

e h

igh

sch

oo

l d

iplo

mas

iss

ued

over

th

e 14 y

ear

old

po

pula

tio

n

four

year

s p

revio

us.

Po

pula

tio

n t

ota

ls f

or

the

U.S

. w

ere

ob

tain

ed f

rom

th

e U

.S. C

ensu

s B

ure

au. C

alif

orn

ia p

op

ula

tio

n e

stim

ates

wer

e o

bta

ined

fro

m t

he

Cal

ifo

rnia

Dem

ogr

aph

ic

Res

earc

h U

nit

.

Note

s:A

uth

ors

’ca

lcu

lati

on

sb

ase

don

NC

ES

data

.T

he

gra

du

ati

on

rate

isth

enu

mb

erof

regu

lar

pu

blic

an

dp

rivate

hig

hsc

hool

dip

lom

as

issu

edover

the

14

yea

rold

pop

ula

tion

fou

ryea

rsp

revio

us.

Pop

ula

tion

tota

lsfo

rth

eU

.S.

wer

eob

tain

edfr

om

the

U.S

.C

ensu

sB

ure

au

.C

ali

forn

iap

op

ula

tion

esti

mate

sw

ere

ob

tain

edfr

om

the

Califo

rnia

Dem

ogra

ph

ic

Res

earc

hU

nit

.

44

Page 84: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-1:

Fix

edE

ffec

tsE

stim

ates

ofth

eE

ffec

tof

the

Ref

orm

onG

ED

Tes

tT

akin

gR

ates

by

You

nge

rC

ohor

ts

Ind

epen

den

t V

aria

ble

sG

ED

Tes

t T

akin

g R

ate

(Age

s 16

-19)

GE

D T

est

Tak

ing

Rat

e (A

ges

16-1

7)G

ED

Tes

t T

akin

g R

ate

(Age

s 18

-19)

Post

199

7 du

mm

y-0

.000

20.

0007

-0.0

012

(0.0

007)

(0.0

006)

(0.0

011)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.005

5-0

.003

4-0

.007

6(0

.001

6)(0

.001

5)(0

.002

1)Lo

cal u

nem

ploy

men

t rat

e0.

0020

0.00

190.

0021

(0.0

005)

(0.0

007)

(0.0

008)

Log

of p

er c

apita

inco

me

0.02

130.

0184

0.02

40(0

.006

1)(0

.006

4)(0

.008

4)O

bser

vatio

ns14

314

314

3N

umbe

r of S

tate

s24

2424

Not

e: H

uber

-Whi

te ro

bust

stan

dard

err

ors a

re in

par

enth

eses

(clu

ster

ed b

y st

ate)

. Mod

el is

estim

ated

usin

g O

LS. S

tate

15-

17 y

ear o

ld p

opul

atio

ns a

re

used

as w

eight

s. Th

e tre

atm

ent e

ffect

repo

rted

abov

e is

the

inte

ract

ion

betw

een

the

treat

men

t sta

te d

umm

y an

d th

e po

st 1

997

dum

my,

whe

re th

e tre

atm

ent s

tate

dum

my

is eq

ual t

o 1

for t

reat

men

t sta

tes a

nd th

e po

st 1

997

dum

my

is eq

ual t

o 1

for t

he y

ears

199

8-20

00, o

ther

wise

bot

h du

mm

ies

are

equa

l to

0. S

tate

s with

few

er th

an tw

o ob

serv

atio

ns p

er p

erio

d ar

e dr

oppe

d. T

reat

men

t sta

tes a

re th

ose

stat

es th

at w

ere

requ

ired

to e

limin

ate

the

and/

or sc

ore

optio

n. T

hese

inclu

de: L

A, M

S, N

E, N

M, T

X. C

ontro

l sta

tes a

re th

ose

that

alre

ady

had

high

eno

ugh

stan

dard

s by

1997

. The

se in

clude

: A

R, C

A, C

O, D

E, D

C, F

L, ID

, KY

, MD

, MO

, NY

, ND

, OK

, OR,

SD

, UT,

WA

, WV

, WI.

Con

trol s

tate

s dro

pped

due

to m

issin

g an

d ne

gativ

e dr

opou

t rat

es in

clude

: NJ.

No

treat

men

t sta

tes a

re d

ropp

ed.

45

Page 85: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-2:

Fix

edE

ffec

tsE

stim

ates

ofth

eE

ffec

tof

the

Ref

orm

onG

ED

Tes

tT

akin

gR

ates

by

You

nge

rC

ohor

tsC

ontr

olling

for

Age

Req

uir

emen

ts

Ind

epen

den

t V

aria

ble

sG

ED

Tes

t T

akin

g R

ate

(Age

s 16

-19)

GE

D T

est

Tak

ing

Rat

e (A

ges

16-1

7)G

ED

Tes

t T

akin

g R

ate

(Age

s 18

-19)

Post

199

7 du

mm

y-0

.000

10.

0007

-0.0

011

(0.0

008)

(0.0

007)

(0.0

011)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.005

7-0

.003

6-0

.007

7(0

.001

8)(0

.001

7)(0

.002

5)Lo

cal u

nem

ploy

men

t rat

e0.

0020

0.00

190.

0021

(0.0

006)

(0.0

007)

(0.0

009)

Log

of p

er c

apita

inco

me

0.02

140.

0185

0.02

41(0

.006

5)(0

.007

0)(0

.008

9)M

inim

um G

ED

age

requ

irem

ent i

s 16

0.00

090.

0007

0.00

13(d

umm

y fo

r min

imum

GE

D a

ge re

quire

men

t set

abo

ve 1

8 is

left o

ut)

(0.0

016)

(0.0

019)

(0.0

015)

Min

imum

GE

D a

ge re

quire

men

t is 1

7 -0

.001

-0.0

013

-0.0

005

(0.0

017)

(0.0

020)

(0.0

020)

Min

imum

GE

D a

ge re

quire

men

t is 1

8 -0

.000

20.

0001

-0.0

002

(0.0

014)

(0.0

015)

(0.0

013)

Min

imum

scho

ol le

avin

g ag

e is

16-0

.000

4-0

.000

70.

0001

(dum

my

for m

inim

um sc

hool

leav

ing

age

set a

bove

17

is lef

t out

)(0

.001

9)(0

.000

9)(0

.003

2)M

inim

um sc

hool

leav

ing

age

is 17

0.00

050.

0000

0.00

11(0

.001

7)(0

.001

2)(0

.003

6)O

bser

vatio

ns14

314

314

3N

umbe

r of S

tate

s24

2424

Not

e: H

uber

-Whi

te ro

bust

stan

dard

err

ors a

re in

par

enth

eses

(clu

ster

ed b

y st

ate)

. Mod

el is

estim

ated

usin

g O

LS. S

tate

15-

17 y

ear o

ld p

opul

atio

ns a

re

used

as w

eight

s. Th

e tre

atm

ent e

ffect

repo

rted

abov

e is

the

inte

ract

ion

betw

een

the

treat

men

t sta

te d

umm

y an

d th

e po

st 1

997

dum

my,

whe

re th

e tre

atm

ent s

tate

dum

my

is eq

ual t

o 1

for t

reat

men

t sta

tes a

nd th

e po

st 1

997

dum

my

is eq

ual t

o 1

for t

he y

ears

199

8-20

00, o

ther

wise

bot

h du

mm

ies

are

equa

l to

0. S

tate

s with

few

er th

an tw

o ob

serv

atio

ns p

er p

erio

d ar

e dr

oppe

d. T

reat

men

t sta

tes a

re th

ose

stat

es th

at w

ere

requ

ired

to e

limin

ate

the

and/

or sc

ore

optio

n. T

hese

inclu

de: L

A, M

S, N

E, N

M, T

X. C

ontro

l sta

tes a

re th

ose

that

alre

ady

had

high

eno

ugh

stan

dard

s by

1997

. The

se in

clude

: A

R, C

A, C

O, D

E, D

C, F

L, ID

, KY

, MD

, MO

, NY

, ND

, OK

, OR,

SD

, UT,

WA

, WV

, WI.

Con

trol s

tate

s dro

pped

due

to m

issin

g an

d ne

gativ

e dr

opou

t rat

es in

clude

: NJ.

No

treat

men

t sta

tes a

re d

ropp

ed.

46

Page 86: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-3:

Fix

edE

ffec

tsE

stim

ates

ofth

eE

ffec

tof

the

Ref

orm

onD

rop

out

Rat

es(A

llR

aces

)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Post

199

7 du

mm

y0.

0089

0.01

130.

003

(0.0

039)

(0.0

047)

(0.0

066)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.012

1-0

.004

6-0

.028

6(0

.003

5)(0

.005

1)(0

.006

7)Lo

cal u

nem

ploy

men

t rat

e0.

0041

0.00

83-0

.007

8(0

.003

0)(0

.005

7)(0

.005

6)Lo

g of

per

cap

ita in

com

e-0

.028

5-0

.007

3-0

.099

4(0

.027

3)(0

.037

1)(0

.039

1)O

bser

vatio

ns14

414

414

2N

umbe

r of S

tate

s24

2424

Not

e: H

uber

-Whi

te ro

bust

stan

dard

err

ors a

re in

par

enth

eses

(clu

ster

ed b

y st

ate)

. Mod

el is

estim

ated

usin

g O

LS. S

tate

15-

17 y

ear o

ld p

opul

atio

ns a

re

used

as w

eight

s. Th

e tre

atm

ent e

ffect

repo

rted

abov

e is

the

inte

ract

ion

betw

een

the

treat

men

t sta

te d

umm

y an

d th

e po

st 1

997

dum

my,

whe

re th

e tre

atm

ent s

tate

dum

my

is eq

ual t

o 1

for t

reat

men

t sta

tes a

nd th

e po

st 1

997

dum

my

is eq

ual t

o 1

for t

he y

ears

199

8-20

00, o

ther

wise

bot

h du

mm

ies

are

equa

l to

0. S

tate

s with

few

er th

an tw

o ob

serv

atio

ns p

er p

erio

d ar

e dr

oppe

d. T

reat

men

t sta

tes a

re th

ose

stat

es th

at w

ere

requ

ired

to e

limin

ate

the

and/

or sc

ore

optio

n. T

hese

inclu

de: L

A, M

S, N

E, N

M, T

X. C

ontro

l sta

tes a

re th

ose

that

alre

ady

had

high

eno

ugh

stan

dard

s by

1997

. The

se in

clude

: A

R, C

A, C

O, D

E, D

C, F

L, ID

, KY

, MD

, MO

, NJ,

NY

, ND

, OK

, OR,

SD

, UT,

WA

, WV

, WI.

Con

trol s

tate

s dro

pped

due

to m

issin

g an

d ne

gativ

e dr

opou

t rat

es in

clude

: NJ.

No

treat

men

t sta

tes a

re d

ropp

ed.

47

Page 87: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-4:

Fix

edE

ffec

tsE

stim

ates

ofth

eE

ffec

tof

the

Ref

orm

onD

rop

out

Rat

es(W

hit

es)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Post

199

7 du

mm

y0.

0073

0.00

820.

0042

(0.0

031)

(0.0

054)

(0.0

064)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.004

7-0

.000

2-0

.013

8(0

.001

5)(0

.004

3)(0

.008

2)Lo

cal u

nem

ploy

men

t rat

e0.

0037

0.00

61-0

.001

7(0

.001

5)(0

.004

0)(0

.005

0)Lo

g of

per

cap

ita in

com

e-0

.030

9-0

.014

9-0

.066

1(0

.019

1)(0

.029

1)(0

.024

7)O

bser

vatio

ns84

8382

Num

ber o

f Sta

tes

1414

14N

ote:

Hub

er-W

hite

robu

st st

anda

rd e

rror

s are

in p

aren

thes

es (c

lust

ered

by

stat

e). M

odel

is es

timat

ed u

sing

OLS

. Sta

te 1

5-17

yea

r old

pop

ulat

ions

are

us

ed a

s weig

hts.

The

treat

men

t effe

ct re

porte

d ab

ove

is th

e in

tera

ctio

n be

twee

n th

e tre

atm

ent s

tate

dum

my

and

the

post

199

7 du

mm

y, w

here

the

treat

men

t sta

te d

umm

y is

equa

l to

1 fo

r tre

atm

ent s

tate

s and

the

post

199

7 du

mm

y is

equa

l to

1 fo

r the

yea

rs 1

998-

2000

, oth

erw

ise b

oth

dum

mies

ar

e eq

ual t

o 0.

Sta

tes w

ith fe

wer

than

two

obse

rvat

ions

per

per

iod

for a

ny o

f the

dro

pout

rate

mea

sure

s by

race

are

dro

pped

. Tre

atm

ent s

tate

s are

th

ose

stat

es th

at w

ere

requ

ired

to e

limin

ate

the

and/

or sc

ore

optio

n. T

hese

inclu

de: L

A, M

S, N

E, N

M, T

X. C

ontro

l sta

tes a

re th

ose

that

alre

ady

had

high

eno

ugh

stan

dard

s by

1997

. The

se in

clude

: AR,

CA

, CO

, DE

, DC,

FL,

ID, K

Y, M

D, M

O, N

J, N

Y, N

D, O

K, O

R, S

D, U

T, W

A, W

V, W

I.

Cont

rol s

tate

s dro

pped

due

to m

issin

g an

d ne

gativ

e dr

opou

t rat

es in

clude

: AR,

ID, K

Y, M

O, N

D, N

J, N

Y, S

D, U

T, W

A, W

V. N

o tre

atm

ent s

tate

s ar

e dr

oppe

d.

48

Page 88: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-5:

Fix

edE

ffec

tsE

stim

ates

ofth

eE

ffec

tof

the

Ref

orm

onD

rop

out

Rat

es(B

lack

s)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Post

199

7 du

mm

y0.

0145

0.01

380.

0156

(0.0

098)

(0.0

141)

(0.0

251)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.008

30.

0037

-0.0

402

(0.0

094)

(0.0

148)

(0.0

176)

Loca

l une

mpl

oym

ent r

ate

-0.0

032

-0.0

004

-0.0

109

(0.0

067)

(0.0

118)

(0.0

160)

Log

of p

er c

apita

inco

me

-0.1

364

-0.1

245

-0.1

584

(0.0

688)

(0.0

760)

(0.1

409)

Obs

erva

tions

8484

82N

umbe

r of S

tate

s14

1414

Not

e: H

uber

-Whi

te ro

bust

stan

dard

err

ors a

re in

par

enth

eses

(clu

ster

ed b

y st

ate)

. Mod

el is

estim

ated

usin

g O

LS. S

tate

15-

17 y

ear o

ld p

opul

atio

ns a

re

used

as w

eight

s. Th

e tre

atm

ent e

ffect

repo

rted

abov

e is

the

inte

ract

ion

betw

een

the

treat

men

t sta

te d

umm

y an

d th

e po

st 1

997

dum

my,

whe

re th

e tre

atm

ent s

tate

dum

my

is eq

ual t

o 1

for t

reat

men

t sta

tes a

nd th

e po

st 1

997

dum

my

is eq

ual t

o 1

for t

he y

ears

199

8-20

00, o

ther

wise

bot

h du

mm

ies

are

equa

l to

0. S

tate

s with

few

er th

an tw

o ob

serv

atio

ns p

er p

erio

d fo

r any

of t

he d

ropo

ut ra

te m

easu

res b

y ra

ce a

re d

ropp

ed. T

reat

men

t sta

tes a

re

thos

e st

ates

that

wer

e re

quire

d to

elim

inat

e th

e an

d/or

scor

e op

tion.

The

se in

clude

: LA

, MS,

NE

, NM

, TX

. Con

trol s

tate

s are

thos

e th

at a

lread

y ha

d hi

gh e

noug

h st

anda

rds b

y 19

97. T

hese

inclu

de: A

R, C

A, C

O, D

E, D

C, F

L, ID

, KY

, MD

, MO

, NJ,

NY

, ND

, OK

, OR,

SD

, UT,

WA

, WV

, WI.

Co

ntro

l sta

tes d

ropp

ed d

ue to

miss

ing

and

nega

tive

drop

out r

ates

inclu

de: A

R, ID

, KY

, MO

, ND

, NJ,

NY

, SD

, UT,

WA

, WV

. No

treat

men

t sta

tes

are

drop

ped.

49

Page 89: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-6:

Fix

edE

ffec

tsE

stim

ates

ofth

eE

ffec

tof

the

Ref

orm

onD

rop

out

Rat

es(H

ispan

ics)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Post

199

7 du

mm

y0.

0136

0.00

970.

0233

(0.0

062)

(0.0

064)

(0.0

074)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.026

8-0

.013

8-0

.059

9(0

.004

3)(0

.006

0)(0

.003

0)Lo

cal u

nem

ploy

men

t rat

e0.

0120

0.02

02(0

.011

4)(0

.004

6)(0

.006

9)(0

.006

3)Lo

g of

per

cap

ita in

com

e-0

.004

90.

0674

-0.2

041

(0.0

562)

(0.0

677)

(0.0

611)

Obs

erva

tions

8483

82N

umbe

r of S

tate

s14

1414

Not

e: H

uber

-Whi

te ro

bust

stan

dard

err

ors a

re in

par

enth

eses

(clu

ster

ed b

y st

ate)

. Mod

el is

estim

ated

usin

g O

LS. S

tate

15-

17 y

ear o

ld p

opul

atio

ns a

re

used

as w

eight

s. Th

e tre

atm

ent e

ffect

repo

rted

abov

e is

the

inte

ract

ion

betw

een

the

treat

men

t sta

te d

umm

y an

d th

e po

st 1

997

dum

my,

whe

re th

e tre

atm

ent s

tate

dum

my

is eq

ual t

o 1

for t

reat

men

t sta

tes a

nd th

e po

st 1

997

dum

my

is eq

ual t

o 1

for t

he y

ears

199

8-20

00, o

ther

wise

bot

h du

mm

ies

are

equa

l to

0. S

tate

s with

few

er th

an tw

o ob

serv

atio

ns p

er p

erio

d fo

r any

of t

he d

ropo

ut ra

te m

easu

res b

y ra

ce a

re d

ropp

ed. T

reat

men

t sta

tes a

re

thos

e st

ates

that

wer

e re

quire

d to

elim

inat

e th

e an

d/or

scor

e op

tion.

The

se in

clude

: LA

, MS,

NE

, NM

, TX

. Con

trol s

tate

s are

thos

e th

at a

lread

y ha

d hi

gh e

noug

h st

anda

rds b

y 19

97. T

hese

inclu

de: A

R, C

A, C

O, D

E, D

C, F

L, ID

, KY

, MD

, MO

, NJ,

NY

, ND

, OK

, OR,

SD

, UT,

WA

, WV

, WI.

Cont

rol s

tate

s dro

pped

due

to m

issin

g an

d ne

gativ

e dr

opou

t rat

es in

clude

: AR,

ID, K

Y, M

O, N

D, N

J, N

Y, S

D, U

T, W

A, W

V. N

o tre

atm

ent s

tate

s ar

e dr

oppe

d.

50

Page 90: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-7:

Fix

edE

ffec

tsE

stim

ates

ofth

eE

ffec

tof

the

Ref

orm

onD

rop

out

Rat

esC

ontr

olling

for

Age

Req

uir

emen

ts(A

llR

aces

)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Post

199

7 du

mm

y0.

0093

0.01

250.

0023

(0.0

040)

(0.0

050)

(0.0

066)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.012

9-0

.005

5-0

.029

5(0

.003

7)(0

.005

4)(0

.006

5)Lo

cal u

nem

ploy

men

t rat

e0.

0043

0.00

90-0

.008

4(0

.003

1)(0

.006

0)(0

.005

7)Lo

g of

per

cap

ita in

com

e-0

.027

6-0

.003

7-0

.101

8(0

.028

5)(0

.039

2)(0

.039

2)M

inim

um G

ED

age

requ

irem

ent i

s 16

0.00

470.

0145

-0.0

092

(dum

my

for m

inim

um G

ED

age

requ

irem

ent s

et a

bove

18

is lef

t out

)(0

.004

3)(0

.003

7)(0

.005

7)M

inim

um G

ED

age

requ

irem

ent i

s 17

0.00

650.

0155

-0.0

101

(0.0

054)

(0.0

053)

(0.0

117)

Min

imum

GE

D a

ge re

quire

men

t is 1

8 0.

0035

0.01

14-0

.008

6(0

.003

8)(0

.002

3)(0

.004

8)M

inim

um sc

hool

leav

ing

age

is 16

0.00

70.

0073

0.00

39(d

umm

y fo

r min

imum

scho

ol le

avin

g ag

e se

t abo

ve 1

7 is

left o

ut)

(0.0

058)

(0.0

071)

(0.0

060)

Min

imum

scho

ol le

avin

g ag

e is

170.

0187

0.01

520.

0187

(0.0

091)

(0.0

099)

(0.0

139)

Obs

erva

tions

144

144

142

Num

ber o

f Sta

tes

2424

24N

ote:

Hub

er-W

hite

robu

st st

anda

rd e

rror

s are

in p

aren

thes

es (c

lust

ered

by

stat

e). M

odel

is es

timat

ed u

sing

OLS

. Sta

te 1

5-17

yea

r old

pop

ulat

ions

are

us

ed a

s weig

hts.

The

treat

men

t effe

ct re

porte

d ab

ove

is th

e in

tera

ctio

n be

twee

n th

e tre

atm

ent s

tate

dum

my

and

the

post

199

7 du

mm

y, w

here

the

treat

men

t sta

te d

umm

y is

equa

l to

1 fo

r tre

atm

ent s

tate

s and

the

post

199

7 du

mm

y is

equa

l to

1 fo

r the

yea

rs 1

998-

2000

, oth

erw

ise b

oth

dum

mies

ar

e eq

ual t

o 0.

Sta

tes w

ith fe

wer

than

two

obse

rvat

ions

per

per

iod

are

drop

ped.

Tre

atm

ent s

tate

s are

thos

e st

ates

that

wer

e re

quire

d to

elim

inat

e th

e an

d/or

scor

e op

tion.

The

se in

clude

: LA

, MS,

NE

, NM

, TX

. Con

trol s

tate

s are

thos

e th

at a

lread

y ha

d hi

gh e

noug

h st

anda

rds b

y 19

97. T

hese

inclu

de:

AR,

CA

, CO

, DE

, DC,

FL,

ID, K

Y, M

D, M

O, N

Y, N

D, O

K, O

R, S

D, U

T, W

A, W

V, W

I. C

ontro

l sta

tes d

ropp

ed d

ue to

miss

ing

and

nega

tive

drop

out r

ates

inclu

de: N

J. N

o tre

atm

ent s

tate

s are

dro

pped

.

51

Page 91: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-8:

Fix

edE

ffec

tsE

stim

ates

ofth

eE

ffec

tof

the

Ref

orm

onD

rop

out

Rat

esC

ontr

olling

for

Age

Req

uir

emen

ts(W

hit

es)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Post

199

7 du

mm

y0.

0076

0.00

870.

0042

(0.0

033)

(0.0

056)

(0.0

066)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.004

30.

0000

-0.0

132

(0.0

015)

(0.0

045)

(0.0

088)

Loca

l une

mpl

oym

ent r

ate

0.00

370.

0065

-0.0

026

(0.0

016)

(0.0

044)

(0.0

054)

Log

of p

er c

apita

inco

me

-0.0

320

-0.0

132

-0.0

741

(0.0

200)

(0.0

313)

(0.0

275)

Min

imum

GE

D a

ge re

quire

men

t is 1

6 0.

0014

0.00

59-0

.008

1(d

umm

y fo

r min

imum

GE

D a

ge re

quire

men

t set

abo

ve 1

8 is

left o

ut)

(0.0

031)

(0.0

053)

(0.0

040)

Min

imum

GE

D a

ge re

quire

men

t is 1

7 0.

0019

0.00

92-0

.016

8(0

.005

9)(0

.006

0)(0

.018

8)M

inim

um G

ED

age

requ

irem

ent i

s 18

0.00

230.

0051

-0.0

04(0

.000

6)(0

.001

1)(0

.001

6)M

inim

um sc

hool

leav

ing

age

is 16

0.01

350.

0126

0.01

15(d

umm

y fo

r min

imum

scho

ol le

avin

g ag

e se

t abo

ve 1

7 is

left o

ut)

(0.0

044)

(0.0

037)

(0.0

061)

Min

imum

scho

ol le

avin

g ag

e is

170.

0148

0.01

76-0

.001

(0.0

092)

(0.0

054)

(0.0

213)

Obs

erva

tions

8483

82N

umbe

r of S

tate

s14

1414

Not

e: H

uber

-Whi

te ro

bust

stan

dard

err

ors a

re in

par

enth

eses

(clu

ster

ed b

y st

ate)

. Mod

el is

estim

ated

usin

g O

LS. S

tate

15-

17 y

ear o

ld p

opul

atio

ns a

re

used

as w

eight

s. Th

e tre

atm

ent e

ffect

repo

rted

abov

e is

the

inte

ract

ion

betw

een

the

treat

men

t sta

te d

umm

y an

d th

e po

st 1

997

dum

my,

whe

re th

e tre

atm

ent s

tate

dum

my

is eq

ual t

o 1

for t

reat

men

t sta

tes a

nd th

e po

st 1

997

dum

my

is eq

ual t

o 1

for t

he y

ears

199

8-20

00, o

ther

wise

bot

h du

mm

ies

are

equa

l to

0. S

tate

s with

few

er th

an tw

o ob

serv

atio

ns p

er p

erio

d fo

r any

of t

he d

ropo

ut ra

te m

easu

res b

y ra

ce a

re d

ropp

ed. T

reat

men

t sta

tes a

re

thos

e st

ates

that

wer

e re

quire

d to

elim

inat

e th

e an

d/or

scor

e op

tion.

The

se in

clude

: LA

, MS,

NE

, NM

, TX

. Con

trol s

tate

s are

thos

e th

at a

lread

y ha

d hi

gh e

noug

h st

anda

rds b

y 19

97. T

hese

inclu

de: C

A, C

O, D

E, D

C, F

L, M

D,

OK

, OR,

WI.

Con

trol s

tate

s dro

pped

due

to m

issin

g an

d ne

gativ

e dr

opou

t rat

es in

clude

: AR,

ID, K

Y, M

O, N

D, N

J, N

Y, S

D, U

T, W

A, W

V. N

o tre

atm

ent s

tate

s are

dro

pped

.

52

Page 92: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-9:

Fix

edE

ffec

tsE

stim

ates

ofth

eE

ffec

tof

the

Ref

orm

onD

rop

out

Rat

esC

ontr

olling

for

Age

Req

uir

emen

ts(B

lack

s

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Post

199

7 du

mm

y0.

0179

0.01

850.

0143

(0.0

101)

(0.0

145)

(0.0

258)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.012

90.

0009

-0.0

484

(0.0

098)

(0.0

161)

(0.0

182)

Loca

l une

mpl

oym

ent r

ate

-0.0

026

0.00

08-0

.012

1(0

.006

7)(0

.012

5)(0

.016

7)Lo

g of

per

cap

ita in

com

e-0

.136

2-0

.123

9-0

.158

9(0

.065

2)(0

.073

3)(0

.140

5)M

inim

um G

ED

age

requ

irem

ent i

s 16

0.06

300.

0697

0.04

10(d

umm

y fo

r min

imum

GE

D a

ge re

quire

men

t set

abo

ve 1

8 is

left o

ut)

(0.0

080)

(0.0

138)

(0.0

156)

Min

imum

GE

D a

ge re

quire

men

t is 1

7 0.

0296

0.03

8-0

.025

7(0

.014

6)(0

.013

9)(0

.020

9)M

inim

um G

ED

age

requ

irem

ent i

s 18

0.05

190.

055

0.04

17(0

.003

8)(0

.005

1)(0

.008

8)M

inim

um sc

hool

leav

ing

age

is 16

0.05

650.

0666

0.03

01(d

umm

y fo

r min

imum

scho

ol le

avin

g ag

e se

t abo

ve 1

7 is

left o

ut)

(0.0

139)

(0.0

149)

(0.0

122)

Min

imum

scho

ol le

avin

g ag

e is

170.

0413

0.04

63-0

.003

(0.0

090)

(0.0

154)

(0.0

148)

Obs

erva

tions

8484

82N

umbe

r of S

tate

s14

1414

Not

e: H

uber

-Whi

te ro

bust

stan

dard

err

ors a

re in

par

enth

eses

(clu

ster

ed b

y st

ate)

. Mod

el is

estim

ated

usin

g O

LS. S

tate

15-

17 y

ear o

ld p

opul

atio

ns a

re

used

as w

eight

s. Th

e tre

atm

ent e

ffect

repo

rted

abov

e is

the

inte

ract

ion

betw

een

the

treat

men

t sta

te d

umm

y an

d th

e po

st 1

997

dum

my,

whe

re th

e tre

atm

ent s

tate

dum

my

is eq

ual t

o 1

for t

reat

men

t sta

tes a

nd th

e po

st 1

997

dum

my

is eq

ual t

o 1

for t

he y

ears

199

8-20

00, o

ther

wise

bot

h du

mm

ies

are

equa

l to

0. S

tate

s with

few

er th

an tw

o ob

serv

atio

ns p

er p

erio

d fo

r any

of t

he d

ropo

ut ra

te m

easu

res b

y ra

ce a

re d

ropp

ed. T

reat

men

t sta

tes a

re

thos

e st

ates

that

wer

e re

quire

d to

elim

inat

e th

e an

d/or

scor

e op

tion.

The

se in

clude

: LA

, MS,

NE

, NM

, TX

. Con

trol s

tate

s are

thos

e th

at a

lread

y ha

d hi

gh e

noug

h st

anda

rds b

y 19

97. T

hese

inclu

de: C

A, C

O, D

E, D

C, F

L, M

D,

OK

, OR,

WI.

Con

trol s

tate

s dro

pped

due

to m

issin

g an

d ne

gativ

e dr

opou

t rat

es in

clude

: AR,

ID, K

Y, M

O, N

D, N

J, N

Y, S

D, U

T, W

A, W

V. N

o tre

atm

ent s

tate

s are

dro

pped

.

53

Page 93: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-10:

Fix

edE

ffec

tsE

stim

ates

ofth

eE

ffec

tof

the

Ref

orm

onD

rop

out

Rat

esC

ontr

olling

for

Age

Req

uir

emen

ts(H

ispan

ics)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Post

199

7 du

mm

y0.

0141

0.01

070.

0224

(0.0

067)

(0.0

068)

(0.0

079)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.027

4-0

.013

8-0

.061

6(0

.004

0)(0

.005

0)(0

.004

6)Lo

cal u

nem

ploy

men

t rat

e0.

0122

0.02

04-0

.011

0(0

.004

5)(0

.007

1)(0

.007

0)Lo

g of

per

cap

ita in

com

e-0

.003

30.

0664

-0.1

958

(0.0

582)

(0.0

690)

(0.0

714)

Min

imum

GE

D a

ge re

quire

men

t is 1

6 0.

0265

0.03

270.

0088

(dum

my

for m

inim

um G

ED

age

requ

irem

ent s

et a

bove

18

is lef

t out

)(0

.015

0)(0

.021

8)(0

.008

9)M

inim

um G

ED

age

requ

irem

ent i

s 17

0.03

010.

0414

0.00

16(0

.011

4)(0

.017

4)(0

.010

4)M

inim

um G

ED

age

requ

irem

ent i

s 18

0.04

150.

0521

0.01

31(0

.003

5)(0

.005

1)(0

.004

7)M

inim

um sc

hool

leav

ing

age

is 16

-0.0

051

-0.0

001

-0.0

166

(dum

my

for m

inim

um sc

hool

leav

ing

age

set a

bove

17

is lef

t out

)(0

.007

6)(0

.010

5)(0

.006

4)M

inim

um sc

hool

leav

ing

age

is 17

0.09

120.

113

-0.0

194

(0.0

186)

(0.0

281)

(0.0

216)

Obs

erva

tions

8483

82N

umbe

r of S

tate

s14

1414

Not

e: H

uber

-Whi

te ro

bust

stan

dard

err

ors a

re in

par

enth

eses

(clu

ster

ed b

y st

ate)

. Mod

el is

estim

ated

usin

g O

LS. S

tate

15-

17 y

ear o

ld p

opul

atio

ns a

re

used

as w

eight

s. Th

e tre

atm

ent e

ffect

repo

rted

abov

e is

the

inte

ract

ion

betw

een

the

treat

men

t sta

te d

umm

y an

d th

e po

st 1

997

dum

my,

whe

re th

e tre

atm

ent s

tate

dum

my

is eq

ual t

o 1

for t

reat

men

t sta

tes a

nd th

e po

st 1

997

dum

my

is eq

ual t

o 1

for t

he y

ears

199

8-20

00, o

ther

wise

bot

h du

mm

ies

are

equa

l to

0. S

tate

s with

few

er th

an tw

o ob

serv

atio

ns p

er p

erio

d fo

r any

of t

he d

ropo

ut ra

te m

easu

res b

y ra

ce a

re d

ropp

ed. T

reat

men

t sta

tes a

re

thos

e st

ates

that

wer

e re

quire

d to

elim

inat

e th

e an

d/or

scor

e op

tion.

The

se in

clude

: LA

, MS,

NE

, NM

, TX

. Con

trol s

tate

s are

thos

e th

at a

lread

y ha

d hi

gh e

noug

h st

anda

rds b

y 19

97. T

hese

inclu

de: C

A, C

O, D

E, D

C, F

L, M

D,

OK

, OR,

WI.

Con

trol s

tate

s dro

pped

due

to m

issin

g an

d ne

gativ

e dr

opou

t rat

es in

clude

: AR,

ID, K

Y, M

O, N

D, N

J, N

Y, S

D, U

T, W

A, W

V. N

o tre

atm

ent s

tate

s are

dro

pped

.

54

Page 94: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-11:

Fix

edE

ffec

tsE

stim

ates

ofth

eE

ffec

tof

the

Ref

orm

onD

rop

out

Rat

esw

ith

Min

imum

Sco

reC

han

ger

Sta

tes

asC

ontr

olG

roup

(All

Rac

es)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Post

199

7 du

mm

y0.

0182

0.01

460.

0274

(0.0

071)

(0.0

064)

(0.0

161)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.015

3-0

.002

3-0

.048

3(0

.004

4)(0

.003

5)(0

.011

4)Lo

cal u

nem

ploy

men

t rat

e0.

0069

0.00

060.

0193

(0.0

036)

(0.0

042)

(0.0

073)

Log

of p

er c

apita

inco

me

-0.0

420

-0.0

897

0.06

40(0

.035

5)(0

.054

0)(0

.058

6)M

inim

um G

ED

age

requ

irem

ent i

s 16

0.00

07-0

.001

00.

0034

(dum

my

for m

inim

um G

ED

age

requ

irem

ent s

et a

bove

18

is lef

t out

)(0

.002

7)(0

.004

2)(0

.007

6)M

inim

um G

ED

age

requ

irem

ent i

s 17

0.00

460.

0037

0.00

31(0

.007

7)(0

.008

6)(0

.023

6)M

inim

um G

ED

age

requ

irem

ent i

s 18

0.00

450.

0088

-0.0

103

(0.0

076)

(0.0

087)

(0.0

099)

Min

imum

scho

ol le

avin

g ag

e is

160.

0031

-0.0

016

0.01

7(d

umm

y fo

r min

imum

scho

ol le

avin

g ag

e se

t abo

ve 1

7 is

left o

ut)

(0.0

036)

(0.0

026)

(0.0

083)

Min

imum

scho

ol le

avin

g ag

e is

170.

0101

-0.0

002

0.03

79(0

.005

2)(0

.005

1)(0

.023

7)O

bser

vatio

ns18

618

618

4N

umbe

r of S

tate

s31

3131

Not

e: H

uber

-Whi

te ro

bust

stan

dard

err

ors a

re in

par

enth

eses

(clu

ster

ed b

y st

ate)

. Mod

el is

estim

ated

usin

g O

LS. S

tate

15-

17 y

ear o

ld p

opul

atio

ns a

re

used

as w

eight

s. Th

e tre

atm

ent e

ffect

repo

rted

abov

e is

the

inte

ract

ion

betw

een

the

treat

men

t sta

te d

umm

y an

d th

e po

st 1

997

dum

my,

whe

re th

e tre

atm

ent s

tate

dum

my

is eq

ual t

o 1

for t

reat

men

t sta

tes a

nd th

e po

st 1

997

dum

my

is eq

ual t

o 1

for t

he y

ears

199

8-20

00, o

ther

wise

bot

h du

mm

ies

are

equa

l to

0. S

tate

s with

few

er th

an tw

o ob

serv

atio

ns p

er p

erio

d ar

e dr

oppe

d. T

reat

men

t sta

tes a

re th

ose

stat

es th

at w

ere

requ

ired

to e

limin

ate

the

and/

or sc

ore

optio

n. T

hese

inclu

de: L

A, M

S, N

E, N

M, T

X. C

ontro

l sta

tes a

re th

ose

that

wer

e re

quire

d to

raise

their

min

imum

scor

e re

quire

men

t fr

om 3

5 to

40

in 1

997.

The

se in

clude

: AK

, AL,

AZ

, CT,

GA

, HI,

IA, I

L, IN

, KS,

MA

, ME

, MI,

MN

, MT,

NC,

NH

, NV

, OH

, PA

, RI,

SC, T

N, V

A,

VT,

WY

. No

stat

es h

ad b

e dr

oppe

d as

a re

sult

of m

issin

g or

neg

ativ

e dr

opou

t rat

es.

55

Page 95: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-12:

Fix

edE

ffec

tsE

stim

ates

ofth

eE

ffec

tof

the

Ref

orm

onD

rop

out

Rat

esw

ith

Min

imum

Sco

reC

han

ger

Sta

tes

asC

ontr

olG

roup

(Whit

es)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Post

199

7 du

mm

y0.

0071

0.00

150.

001

(0.0

099)

(0.0

044)

(0.0

193)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.010

8-0

.003

9-0

.021

1(0

.004

0)(0

.003

4)(0

.011

5)Lo

cal u

nem

ploy

men

t rat

e-0

.002

3-0

.004

80.

0024

(0.0

040)

(0.0

040)

(0.0

090)

Log

of p

er c

apita

inco

me

-0.0

403

-0.0

386

0.01

32(0

.027

8)(0

.025

3)(0

.044

8)M

inim

um G

ED

age

requ

irem

ent i

s 16

-0.0

061

-0.0

009

-0.0

174

(dum

my

for m

inim

um G

ED

age

requ

irem

ent s

et a

bove

18

is lef

t out

)(0

.004

3)(0

.003

4)(0

.009

4)M

inim

um G

ED

age

requ

irem

ent i

s 17

-0.0

084

-0.0

066

-0.0

089

(0.0

080)

(0.0

049)

(0.0

228)

Min

imum

GE

D a

ge re

quire

men

t is 1

8 -0

.007

6-0

.002

4-0

.015

4(0

.005

5)(0

.004

6)(0

.011

1)M

inim

um sc

hool

leav

ing

age

is 16

0.00

450.

0037

0.00

02(d

umm

y fo

r min

imum

scho

ol le

avin

g ag

e se

t abo

ve 1

7 is

left o

ut)

(0.0

048)

(0.0

033)

(0.0

106)

Min

imum

scho

ol le

avin

g ag

e is

170.

0059

0.00

350.

0078

(0.0

069)

(0.0

037)

(0.0

229)

Obs

erva

tions

117

116

118

Num

ber o

f Sta

tes

2020

20N

ote:

Hub

er-W

hite

robu

st st

anda

rd e

rror

s are

in p

aren

thes

es (c

lust

ered

by

stat

e). M

odel

is es

timat

ed u

sing

OLS

. Sta

te 1

5-17

yea

r old

pop

ulat

ions

are

us

ed a

s weig

hts.

The

treat

men

t effe

ct re

porte

d ab

ove

is th

e in

tera

ctio

n be

twee

n th

e tre

atm

ent s

tate

dum

my

and

the

post

199

7 du

mm

y, w

here

the

treat

men

t sta

te d

umm

y is

equa

l to

1 fo

r tre

atm

ent s

tate

s and

the

post

199

7 du

mm

y is

equa

l to

1 fo

r the

yea

rs 1

998-

2000

, oth

erw

ise b

oth

dum

mies

ar

e eq

ual t

o 0.

Sta

tes w

ith fe

wer

than

two

obse

rvat

ions

per

per

iod

for a

ny o

f the

dro

pout

rate

mea

sure

s by

race

are

dro

pped

. Tre

atm

ent s

tate

s are

th

ose

stat

es th

at w

ere

requ

ired

to e

limin

ate

the

and/

or sc

ore

optio

n. T

hese

inclu

de: L

A, M

S, N

E, N

M, T

X. C

ontro

l sta

tes a

re th

ose

that

wer

e re

quire

d to

raise

their

min

imum

scor

e re

quire

men

t fro

m 3

5 to

40

in 1

997.

The

se in

clude

: AK

, AL,

AZ

, CT,

GA

, HI,

IA, I

L, IN

, KS,

MA

, ME

, MI,

MN

, MT,

NC,

NH

, NV

, OH

, PA

, RI,

SC, T

N, V

A, V

T, W

Y. C

ontro

l sta

tes d

ropp

ed d

ue to

miss

ing

and

nega

tive

drop

out r

ates

inclu

de:A

L, A

Z, I

A,

ME

, MN

, MT,

NH

, SC,

TN

, VT,

WY

. No

treat

men

t sta

tes w

ere

drop

ped.

56

Page 96: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-13:

Fix

edE

ffec

tsE

stim

ates

ofth

eE

ffec

tof

the

Ref

orm

onD

rop

out

Rat

esw

ith

Min

imum

Sco

reC

han

ger

Sta

tes

asC

ontr

olG

roup

(Bla

cks)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Post

199

7 du

mm

y0.

0274

0.00

630.

0414

(0.0

193)

(0.0

098)

(0.0

587)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.019

0.00

25-0

.061

(0.0

101)

(0.0

143)

(0.0

472)

Loca

l une

mpl

oym

ent r

ate

-0.0

047

-0.0

190

0.03

39(0

.007

8)(0

.017

0)(0

.031

7)Lo

g of

per

cap

ita in

com

e-0

.171

9-0

.234

90.

1443

(0.1

152)

(0.1

908)

(0.2

572)

Min

imum

GE

D a

ge re

quire

men

t is 1

6 -0

.027

10.

0037

-0.1

088

(dum

my

for m

inim

um G

ED

age

requ

irem

ent s

et a

bove

18

is lef

t out

)(0

.009

4)(0

.016

3)(0

.048

5)M

inim

um G

ED

age

requ

irem

ent i

s 17

-0.0

415

-0.0

04-0

.138

2(0

.014

8)(0

.021

0)(0

.074

3)M

inim

um G

ED

age

requ

irem

ent i

s 18

-0.0

357

0.00

08-0

.123

6(0

.012

4)(0

.021

7)(0

.063

1)M

inim

um sc

hool

leav

ing

age

is 16

0.01

95-0

.006

10.

0753

(dum

my

for m

inim

um sc

hool

leav

ing

age

set a

bove

17

is lef

t out

)(0

.009

7)(0

.015

1)(0

.045

0)M

inim

um sc

hool

leav

ing

age

is 17

0.02

16-0

.001

60.

0708

(0.0

136)

(0.0

200)

(0.0

693)

Obs

erva

tions

118

117

112

Num

ber o

f Sta

tes

2020

20N

ote:

Hub

er-W

hite

robu

st st

anda

rd e

rror

s are

in p

aren

thes

es (c

lust

ered

by

stat

e). M

odel

is es

timat

ed u

sing

OLS

. Sta

te 1

5-17

yea

r old

pop

ulat

ions

are

us

ed a

s weig

hts.

The

treat

men

t effe

ct re

porte

d ab

ove

is th

e in

tera

ctio

n be

twee

n th

e tre

atm

ent s

tate

dum

my

and

the

post

199

7 du

mm

y, w

here

the

treat

men

t sta

te d

umm

y is

equa

l to

1 fo

r tre

atm

ent s

tate

s and

the

post

199

7 du

mm

y is

equa

l to

1 fo

r the

yea

rs 1

998-

2000

, oth

erw

ise b

oth

dum

mies

ar

e eq

ual t

o 0.

Sta

tes w

ith fe

wer

than

two

obse

rvat

ions

per

per

iod

for a

ny o

f the

dro

pout

rate

mea

sure

s by

race

are

dro

pped

. Tre

atm

ent s

tate

s are

th

ose

stat

es th

at w

ere

requ

ired

to e

limin

ate

the

and/

or sc

ore

optio

n. T

hese

inclu

de: L

A, M

S, N

E, N

M, T

X. C

ontro

l sta

tes a

re th

ose

that

wer

e re

quire

d to

raise

their

min

imum

scor

e re

quire

men

t fro

m 3

5 to

40

in 1

997.

The

se in

clude

: AK

, AL,

AZ

, CT,

GA

, HI,

IA, I

L, IN

, KS,

MA

, ME

, MI,

MN

, MT,

NC,

NH

, NV

, OH

, PA

, RI,

SC, T

N, V

A, V

T, W

Y. C

ontro

l sta

tes d

ropp

ed d

ue to

miss

ing

and

nega

tive

drop

out r

ates

inclu

de:A

L, A

Z, I

A,

ME

, MN

, MT,

NH

, SC,

TN

, VT,

WY

. No

treat

men

t sta

tes w

ere

drop

ped.

57

Page 97: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-14:

Fix

edE

ffec

tsE

stim

ates

ofth

eE

ffec

tof

the

Ref

orm

onD

rop

out

Rat

esw

ith

Min

imum

Sco

reC

han

ger

Sta

tes

asC

ontr

olG

roup

(His

pan

ics)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Post

199

7 du

mm

y0.

0356

0.02

820.

0426

(0.0

081)

(0.0

102)

(0.0

162)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.026

7-0

.010

9-0

.066

6(0

.010

5)(0

.015

5)(0

.013

8)Lo

cal u

nem

ploy

men

t rat

e0.

0251

0.01

140.

0511

(0.0

106)

(0.0

148)

(0.0

178)

Log

of p

er c

apita

inco

me

-0.0

177

-0.0

866

0.14

86(0

.091

5)(0

.130

9)(0

.135

4)M

inim

um G

ED

age

requ

irem

ent i

s 16

0.02

15-0

.022

70.

1092

(dum

my

for m

inim

um G

ED

age

requ

irem

ent s

et a

bove

18

is lef

t out

)(0

.036

3)(0

.015

6)(0

.087

9)M

inim

um G

ED

age

requ

irem

ent i

s 17

0.01

29-0

.032

40.

1062

(0.0

348)

(0.0

186)

(0.0

826)

Min

imum

GE

D a

ge re

quire

men

t is 1

8 0.

0062

-0.0

227

0.06

81(0

.031

1)(0

.015

7)(0

.074

1)M

inim

um sc

hool

leav

ing

age

is 16

0.00

950.

0078

0.00

38(d

umm

y fo

r min

imum

scho

ol le

avin

g ag

e se

t abo

ve 1

7 is

left o

ut)

(0.0

095)

(0.0

156)

(0.0

128)

Min

imum

scho

ol le

avin

g ag

e is

170.

1285

0.15

02-0

.009

(0.0

162)

(0.0

221)

(0.0

183)

Obs

erva

tions

118

116

115

Num

ber o

f Sta

tes

2020

20N

ote:

Hub

er-W

hite

robu

st st

anda

rd e

rror

s are

in p

aren

thes

es (c

lust

ered

by

stat

e). M

odel

is es

timat

ed u

sing

OLS

. Sta

te 1

5-17

yea

r old

pop

ulat

ions

are

us

ed a

s weig

hts.

The

treat

men

t effe

ct re

porte

d ab

ove

is th

e in

tera

ctio

n be

twee

n th

e tre

atm

ent s

tate

dum

my

and

the

post

199

7 du

mm

y, w

here

the

treat

men

t sta

te d

umm

y is

equa

l to

1 fo

r tre

atm

ent s

tate

s and

the

post

199

7 du

mm

y is

equa

l to

1 fo

r the

yea

rs 1

998-

2000

, oth

erw

ise b

oth

dum

mies

ar

e eq

ual t

o 0.

Sta

tes w

ith fe

wer

than

two

obse

rvat

ions

per

per

iod

for a

ny o

f the

dro

pout

rate

mea

sure

s by

race

are

dro

pped

. Tre

atm

ent s

tate

s are

th

ose

stat

es th

at w

ere

requ

ired

to e

limin

ate

the

and/

or sc

ore

optio

n. T

hese

inclu

de: L

A, M

S, N

E, N

M, T

X. C

ontro

l sta

tes a

re th

ose

that

wer

e re

quire

d to

raise

their

min

imum

scor

e re

quire

men

t fro

m 3

5 to

40

in 1

997.

The

se in

clude

: AK

, AL,

AZ

, CT,

GA

, HI,

IA, I

L, IN

, KS,

MA

, ME

, MI,

MN

, MT,

NC,

NH

, NV

, OH

, PA

, RI,

SC, T

N, V

A, V

T, W

Y. C

ontro

l sta

tes d

ropp

ed d

ue to

miss

ing

and

nega

tive

drop

out r

ates

inclu

de:A

L, A

Z, I

A,

ME

, MN

, MT,

NH

, SC,

TN

, VT,

WY

. No

treat

men

t sta

tes w

ere

drop

ped.

58

Page 98: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-15:

Fix

edE

ffec

tsE

stim

ates

ofth

eE

ffec

tof

the

Ref

orm

onD

rop

out

Rat

esR

estr

icti

ng

Sam

ple

toSou

ther

nSta

tes

(All

Rac

es)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Post

199

7 du

mm

y0.

0117

0.01

120.

013

(0.0

055)

(0.0

072)

(0.0

079)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.014

5-0

.009

5-0

.021

7(0

.002

1)(0

.002

6)(0

.010

1)Lo

cal u

nem

ploy

men

t rat

e-0

.002

3-0

.006

90.

0047

(0.0

030)

(0.0

033)

(0.0

053)

Log

of p

er c

apita

inco

me

-0.0

798

-0.0

906

-0.1

029

(0.0

359)

(0.0

308)

(0.0

601)

Min

imum

GE

D a

ge re

quire

men

t is 1

6 -0

.001

90.

0128

-0.0

198

(dum

my

for m

inim

um G

ED

age

requ

irem

ent s

et a

bove

18

is lef

t out

)(0

.001

9)(0

.001

9)(0

.006

1)M

inim

um G

ED

age

requ

irem

ent i

s 17

-0.0

054

0.01

39-0

.045

3(0

.012

4)(0

.013

9)(0

.006

9)M

inim

um G

ED

age

requ

irem

ent i

s 18

-0.0

032

0.01

23-0

.020

9(0

.001

6)(0

.002

0)(0

.004

2)M

inim

um sc

hool

leav

ing

age

is 16

0.00

860.

010.

0005

(dum

my

for m

inim

um sc

hool

leav

ing

age

set a

bove

17

is lef

t out

)(0

.008

5)(0

.010

0)(0

.004

5)M

inim

um sc

hool

leav

ing

age

is 17

0.01

70.

0205

-0.0

11(0

.021

1)(0

.024

1)(0

.006

7)O

bser

vatio

ns72

7270

Num

ber o

f Sta

tes

1212

12N

ote:

Hub

er-W

hite

robu

st st

anda

rd e

rror

s are

in p

aren

thes

es (c

lust

ered

by

stat

e). M

odel

is es

timat

ed u

sing

OLS

. Sta

te 1

5-17

yea

r old

pop

ulat

ion

are

used

as w

eight

s. St

ates

with

few

er th

an tw

o ob

serv

atio

ns p

er p

erio

d ar

e dr

oppe

d. T

he tr

eatm

ent e

ffect

repo

rted

abov

e is

the

inte

ract

ion

betw

een

the

treat

men

t sta

te d

umm

y an

d th

e po

st p

erio

d du

mm

y, w

here

the

treat

men

t sta

te d

umm

y is

equa

l to

1 fo

r tre

atm

ent s

tate

s and

the

post

perio

d du

mm

y is

equa

l to

1 fo

r the

yea

rs 1

998-

2000

, oth

erw

ise b

oth

dum

mies

are

equ

al to

0. T

reat

men

t sta

tes a

re th

ose

stat

es in

the

sout

h th

at w

ere

requ

ired

to

elim

inat

e th

e an

d/or

scor

e op

tion.

The

se in

clude

: LA

, MS,

NM

, TX

. Con

trol s

tate

s are

thos

e st

ates

in th

e so

uth

that

alre

ady

had

high

eno

ugh

stan

dard

s by

1997

. The

se in

clude

: AR,

DE

, DC,

FL,

KY

, MD

, OK

and

WV

.

59

Page 99: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-16:

Fix

edE

ffec

tsE

stim

ates

ofth

eE

ffec

tof

the

Ref

orm

onD

rop

out

Rat

esR

estr

icti

ng

Sam

ple

toSou

ther

nSta

tes

(Whit

es)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Post

199

7 du

mm

y0.

0075

0.00

80.

004

(0.0

052)

(0.0

093)

(0.0

078)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.004

2-0

.005

30.

0007

(0.0

014)

(0.0

045)

(0.0

123)

Loca

l une

mpl

oym

ent r

ate

0.00

10-0

.001

70.

0082

(0.0

032)

(0.0

050)

(0.0

035)

Log

of p

er c

apita

inco

me

-0.0

490

-0.0

403

-0.0

606

(0.0

408)

(0.0

546)

(0.0

476)

Min

imum

GE

D a

ge re

quire

men

t is 1

6 0.

5726

…0.

6661

(dum

my

for m

inim

um G

ED

age

requ

irem

ent s

et a

bove

18

is lef

t out

)(0

.411

0)…

(0.5

179)

Min

imum

GE

D a

ge re

quire

men

t is 1

7 0.

5632

-0.0

021

0.63

02(0

.413

4)(0

.005

2)(0

.518

2)M

inim

um G

ED

age

requ

irem

ent i

s 18

0.57

23-0

.000

30.

6664

(0.4

115)

(0.0

040)

(0.5

199)

Min

imum

scho

ol le

avin

g ag

e is

160.

0129

0.01

230.

0068

(dum

my

for m

inim

um sc

hool

leav

ing

age

set a

bove

17

is lef

t out

)(0

.006

9)(0

.006

2)(0

.006

6)M

inim

um sc

hool

leav

ing

age

is 17

0.00

560.

0139

-0.0

345

(0.0

160)

(0.0

107)

(0.0

042)

Obs

erva

tions

5453

52N

umbe

r of S

tate

s9

99

Not

e: H

uber

-Whi

te ro

bust

stan

dard

err

ors a

re in

par

enth

eses

(clu

ster

ed b

y st

ate)

. Mod

el is

estim

ated

usin

g O

LS. S

tate

15-

17 y

ear o

ld p

opul

atio

n by

ra

ce a

re u

sed

as w

eight

s. S

tate

s with

few

er th

an tw

o ob

serv

atio

ns p

er p

erio

d fo

r any

of t

he d

ropo

ut ra

te m

easu

res b

y ra

ce a

re d

ropp

ed. T

he

treat

men

t effe

ct re

porte

d ab

ove

is th

e in

tera

ctio

n be

twee

n th

e tre

atm

ent s

tate

dum

my

and

the

post

per

iod

dum

my,

whe

re th

e tre

atm

ent s

tate

dum

my

is eq

ual t

o 1

for t

reat

men

t sta

tes a

nd th

e po

st p

erio

d du

mm

y is

equa

l to

1 fo

r the

yea

rs 1

998-

2000

, oth

erw

ise b

oth

dum

mies

are

equ

al to

0.

Trea

tmen

t sta

tes a

re th

ose

stat

es in

the

sout

h th

at w

ere

requ

ired

to e

limin

ate

the

and/

or sc

ore

optio

n. T

hese

inclu

de: L

A, M

S, N

M, T

X. C

ontro

l st

ates

are

thos

e st

ates

in th

e so

uth

that

alre

ady

had

high

eno

ugh

stan

dard

s by

1997

. The

se in

clude

: AR,

DE

, DC,

FL,

KY

, MD

, OK

and

WV

. Con

trol

stat

es d

ropp

ed d

ue to

miss

ings

inclu

de: A

R, K

Y a

nd W

V. N

o tre

atm

ent s

tate

s wer

e dr

oppe

d as

a re

sult

of m

issin

gs.

60

Page 100: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-17:

Fix

edE

ffec

tsE

stim

ates

ofth

eE

ffec

tof

the

Ref

orm

onD

rop

out

Rat

esR

estr

icti

ng

Sam

ple

toSou

ther

nSta

tes

(Bla

cks)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Post

199

7 du

mm

y0.

0233

0.01

810.

0347

(0.0

121)

(0.0

184)

(0.0

219)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.021

6-0

.015

9-0

.033

(0.0

046)

(0.0

090)

(0.0

224)

Loca

l une

mpl

oym

ent r

ate

-0.0

061

-0.0

112

0.00

84(0

.008

2)(0

.009

8)(0

.010

5)Lo

g of

per

cap

ita in

com

e-0

.144

6-0

.129

4-0

.172

3(0

.069

8)(0

.054

4)(0

.169

0)M

inim

um G

ED

age

requ

irem

ent i

s 16

……

1.79

31(d

umm

y fo

r min

imum

GE

D a

ge re

quire

men

t set

abo

ve 1

8 is

left o

ut)

……

(1.7

685)

Min

imum

GE

D a

ge re

quire

men

t is 1

7 -0

.013

8-0

.011

81.

7195

(0.0

052)

(0.0

069)

(1.7

593)

Min

imum

GE

D a

ge re

quire

men

t is 1

8 -0

.006

4-0

.007

41.

7908

(0.0

031)

(0.0

055)

(1.7

627)

Min

imum

scho

ol le

avin

g ag

e is

160.

0506

0.06

550.

0323

(dum

my

for m

inim

um sc

hool

leav

ing

age

set a

bove

17

is lef

t out

)(0

.004

3)(0

.005

5)(0

.015

4)M

inim

um sc

hool

leav

ing

age

is 17

0.05

260.

0656

-0.0

177

(0.0

033)

(0.0

093)

(0.0

178)

Obs

erva

tions

5454

52N

umbe

r of S

tate

s9

99

Not

e: H

uber

-Whi

te ro

bust

stan

dard

err

ors a

re in

par

enth

eses

(clu

ster

ed b

y st

ate)

. Mod

el is

estim

ated

usin

g O

LS. S

tate

15-

17 y

ear o

ld p

opul

atio

n by

ra

ce a

re u

sed

as w

eight

s. St

ates

with

few

er th

an tw

o ob

serv

atio

ns p

er p

erio

d fo

r any

of t

he d

ropo

ut ra

te m

easu

res b

y ra

ce a

re d

ropp

ed. T

he

treat

men

t effe

ct re

porte

d ab

ove

is th

e in

tera

ctio

n be

twee

n th

e tre

atm

ent s

tate

dum

my

and

the

post

per

iod

dum

my,

whe

re th

e tre

atm

ent s

tate

dum

my

is eq

ual t

o 1

for t

reat

men

t sta

tes a

nd th

e po

st p

erio

d du

mm

y is

equa

l to

1 fo

r the

yea

rs 1

998-

2000

, oth

erw

ise b

oth

dum

mies

are

equ

al to

0.

Trea

tmen

t sta

tes a

re th

ose

stat

es in

the

sout

h th

at w

ere

requ

ired

to e

limin

ate

the

and/

or sc

ore

optio

n. T

hese

inclu

de: L

A, M

S, N

M, T

X. C

ontro

l st

ates

are

thos

e st

ates

in th

e so

uth

that

alre

ady

had

high

eno

ugh

stan

dard

s by

1997

. The

se in

clude

: AR,

DE

, DC,

FL,

KY

, MD

, OK

and

WV

. Con

trol

stat

es d

ropp

ed d

ue to

miss

ings

inclu

de: A

R, K

Y a

nd W

V. N

o tre

atm

ent s

tate

s wer

e dr

oppe

d as

a re

sult

of m

issin

gs.

61

Page 101: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-18:

Fix

edE

ffec

tsE

stim

ates

ofth

eE

ffec

tof

the

Ref

orm

onD

rop

out

Rat

esR

estr

icti

ng

Sam

ple

toSou

ther

nSta

tes

(His

pan

ics)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Post

199

7 du

mm

y0.

0221

0.01

750.

0321

(0.0

176)

(0.0

222)

(0.0

080)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.030

8-0

.018

9-0

.058

2(0

.010

5)(0

.014

2)(0

.009

6)Lo

cal u

nem

ploy

men

t rat

e0.

0069

0.00

580.

0108

(0.0

189)

(0.0

279)

(0.0

121)

Log

of p

er c

apita

inco

me

-0.0

579

-0.0

358

-0.1

109

(0.1

369)

(0.1

830)

(0.1

271)

Min

imum

GE

D a

ge re

quire

men

t is 1

6 …

…1.

1960

(dum

my

for m

inim

um G

ED

age

requ

irem

ent s

et a

bove

18

is lef

t out

)…

…(1

.327

7)M

inim

um G

ED

age

requ

irem

ent i

s 17

-0.0

015

0.00

001.

197

(0.0

068)

(0.0

090)

(1.3

271)

Min

imum

GE

D a

ge re

quire

men

t is 1

8 0.

0103

0.01

751.

1906

(0.0

189)

(0.0

278)

(1.3

340)

Min

imum

scho

ol le

avin

g ag

e is

160.

0003

0.00

52-0

.012

1(d

umm

y fo

r min

imum

scho

ol le

avin

g ag

e se

t abo

ve 1

7 is

left o

ut)

(0.0

100)

(0.0

122)

(0.0

060)

Min

imum

scho

ol le

avin

g ag

e is

170.

0961

0.11

97-0

.019

6(0

.018

4)(0

.024

4)(0

.012

5)O

bser

vatio

ns54

5352

Num

ber o

f Sta

tes

99

9N

ote:

Hub

er-W

hite

robu

st st

anda

rd e

rror

s are

in p

aren

thes

es (c

lust

ered

by

stat

e). M

odel

is es

timat

ed u

sing

OLS

. Sta

te 1

5-17

yea

r old

pop

ulat

ion

by

race

are

use

d as

weig

hts.

Stat

es w

ith fe

wer

than

two

obse

rvat

ions

per

per

iod

for a

ny o

f the

dro

pout

rate

mea

sure

s by

race

are

dro

pped

. The

tre

atm

ent e

ffect

repo

rted

abov

e is

the

inte

ract

ion

betw

een

the

treat

men

t sta

te d

umm

y an

d th

e po

st p

erio

d du

mm

y, w

here

the

treat

men

t sta

te d

umm

y is

equa

l to

1 fo

r tre

atm

ent s

tate

s and

the

post

per

iod

dum

my

is eq

ual t

o 1

for t

he y

ears

199

8-20

00, o

ther

wise

bot

h du

mm

ies a

re e

qual

to 0

. Tr

eatm

ent s

tate

s are

thos

e st

ates

in th

e so

uth

that

wer

e re

quire

d to

elim

inat

e th

e an

d/or

scor

e op

tion.

The

se in

clude

: LA

, MS,

NM

, TX

. Con

trol

stat

es a

re th

ose

stat

es in

the

sout

h th

at a

lread

y ha

d hi

gh e

noug

h st

anda

rds b

y 19

97. T

hese

inclu

de: A

R, D

E, D

C, F

L, K

Y, M

D, O

K an

d W

V. C

ontro

l st

ates

dro

pped

due

to m

issin

gs in

clude

: AR,

KY

and

WV

. No

treat

men

t sta

tes w

ere

drop

ped

as a

resu

lt of

miss

ings

.

62

Page 102: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-19:

Fix

edE

ffec

tsE

stim

ates

ofth

eE

ffec

tof

the

Ref

orm

onD

rop

out

Rat

esE

xcl

udin

gSta

tes

that

Chan

ged

Min

imum

Age

Req

uir

edto

Dro

pO

ut

(All

Rac

es)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Post

199

7 du

mm

y0.

0094

0.01

260.

0023

(0.0

040)

(0.0

050)

(0.0

066)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.013

-0.0

056

-0.0

293

(0.0

037)

(0.0

054)

(0.0

065)

Loca

l une

mpl

oym

ent r

ate

0.00

420.

0089

-0.0

086

(0.0

032)

(0.0

062)

(0.0

058)

Log

of p

er c

apita

inco

me

-0.0

288

-0.0

043

-0.1

038

(0.0

298)

(0.0

413)

(0.0

409)

Min

imum

GE

D a

ge re

quire

men

t is 1

6 0.

0048

0.01

49-0

.009

8(d

umm

y fo

r min

imum

GE

D a

ge re

quire

men

t set

abo

ve 1

8 is

left o

ut)

(0.0

044)

(0.0

041)

(0.0

058)

Min

imum

GE

D a

ge re

quire

men

t is 1

7 0.

0073

0.01

42-0

.002

2(0

.005

0)(0

.005

2)(0

.008

9)M

inim

um G

ED

age

requ

irem

ent i

s 18

0.00

340.

0112

-0.0

084

(0.0

038)

(0.0

023)

(0.0

045)

Obs

erva

tions

126

126

125

Num

ber o

f Sta

tes

2121

21N

ote:

Hub

er-W

hite

robu

st st

anda

rd e

rror

s are

in p

aren

thes

es (c

lust

ered

by

stat

e). M

odel

is es

timat

ed u

sing

OLS

. Sta

te 1

5-17

yea

r old

pop

ulat

ion

are

used

as w

eight

s. St

ates

with

few

er th

an tw

o ob

serv

atio

ns p

er p

erio

d ar

e dr

oppe

d. T

he tr

eatm

ent e

ffect

repo

rted

abov

e is

the

inte

ract

ion

betw

een

the

treat

men

t sta

te d

umm

y an

d th

e po

st p

erio

d du

mm

y, w

here

the

treat

men

t sta

te d

umm

y is

equa

l to

1 fo

r tre

atm

ent s

tate

s and

the

post

perio

d du

mm

y is

equa

l to

1 fo

r the

yea

rs 1

998-

2000

, oth

erw

ise b

oth

dum

mies

are

equ

al to

0. T

reat

men

t sta

tes a

re th

ose

stat

es th

at w

ere

requ

ired

to e

limin

ate

the

and/

or sc

ore

optio

n. T

hese

inclu

de: L

A, M

S, N

E, N

M, T

X. T

reat

men

t sta

tes d

ropp

ed in

this

regr

essio

n ar

e M

S an

d N

M. C

ontro

l sta

tes a

re th

ose

that

alre

ady

had

high

eno

ugh

stan

dard

s by

1997

. The

se in

clude

: AR,

CA

, CO

, DE

, DC,

FL,

ID, K

Y, M

D, M

O, N

J, N

Y, N

D, O

K, O

R, S

D, U

T,

WA

, WV

, WI.

Was

hing

ton

D.C

. is t

he o

nly

one

from

the

cont

rol g

roup

dro

pped

due

to c

hang

es in

min

imum

age

requ

ired

to d

rop

out.

Cont

rol

stat

es d

ropp

ed d

ue to

miss

ing

and

nega

tive

drop

out r

ates

inclu

de: N

J. N

o tre

atm

ent s

tate

s are

dro

pped

.

63

Page 103: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-20:

Fix

edE

ffec

tsE

stim

ates

ofth

eE

ffec

tof

the

Ref

orm

onD

rop

out

Rat

esE

xcl

udin

gSta

tes

that

Chan

ged

Min

imum

Age

Req

uir

edto

Dro

pO

ut

(Whit

es)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Post

199

7 du

mm

y0.

0079

0.00

930.

0039

(0.0

033)

(0.0

057)

(0.0

068)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.004

20.

0001

-0.0

128

(0.0

016)

(0.0

047)

(0.0

091)

Loca

l une

mpl

oym

ent r

ate

0.00

320.

0058

-0.0

024

(0.0

018)

(0.0

046)

(0.0

056)

Log

of p

er c

apita

inco

me

-0.0

374

-0.0

217

-0.0

708

(0.0

210)

(0.0

330)

(0.0

301)

Min

imum

GE

D a

ge re

quire

men

t is 1

6 0.

0002

0.00

47-0

.008

8(d

umm

y fo

r min

imum

GE

D a

ge re

quire

men

t set

abo

ve 1

8 is

left o

ut)

(0.0

031)

(0.0

058)

(0.0

045)

Min

imum

GE

D a

ge re

quire

men

t is 1

7 0.

0041

0.00

75-0

.002

5(0

.003

5)(0

.007

7)(0

.009

0)M

inim

um G

ED

age

requ

irem

ent i

s 18

0.00

20.

0047

-0.0

039

(0.0

007)

(0.0

011)

(0.0

016)

Obs

erva

tions

6666

66N

umbe

r of S

tate

s11

1111

No

treat

men

t sta

tes a

re d

ropp

ed.

Not

e: H

uber

-Whi

te ro

bust

stan

dard

err

ors a

re in

par

enth

eses

(clu

ster

ed b

y st

ate)

. Mod

el is

estim

ated

usin

g O

LS. S

tate

15-

17 y

ear o

ld p

opul

atio

n ar

e us

ed a

s weig

hts.

Sta

tes w

ith fe

wer

than

two

obse

rvat

ions

per

per

iod

for a

ny o

f the

dro

pout

rate

mea

sure

s by

race

are

dro

pped

. The

trea

tmen

t effe

ct

repo

rted

abov

e is

the

inte

ract

ion

betw

een

the

treat

men

t sta

te d

umm

y an

d th

e po

st p

erio

d du

mm

y, w

here

the

treat

men

t sta

te d

umm

y is

equa

l to

1 fo

r tre

atm

ent s

tate

s and

the

post

per

iod

dum

my

is eq

ual t

o 1

for t

he y

ears

199

8-20

00, o

ther

wise

bot

h du

mm

ies a

re e

qual

to 0

. Tre

atm

ent s

tate

s are

thos

e st

ates

that

wer

e re

quire

d to

elim

inat

e th

e an

d/or

scor

e op

tion.

The

se in

clude

: LA

, MS,

NE

, NM

, TX

. Tre

atm

ent s

tate

s dro

pped

in th

is re

gres

sion

due

to c

hang

es in

min

imum

age

requ

ired

to d

rop

out o

f sch

ool a

re M

S an

d N

M. C

ontro

l sta

tes a

re th

ose

that

alre

ady

had

high

eno

ugh

stan

dard

s by

1997

. The

se in

clude

: AR,

CA

, CO

, DE

, DC,

FL,

ID, K

Y, M

D, M

O, N

J, N

Y, N

D, O

K, O

R, S

D, U

T, W

A, W

V, W

I. W

ashi

ngto

n D

.C. i

s the

onl

y on

e fr

om th

e co

ntro

l gro

up d

ropp

ed d

ue to

cha

nges

in m

inim

um a

ge re

quire

d to

dro

p ou

t. Co

ntro

l sta

tes d

ropp

ed d

ue to

miss

ing

and

nega

tive

drop

out r

ates

inclu

de: A

R, ID

, KY

, MO

, ND

, NJ,

NY

, SD

, UT,

WA

, WV

.

64

Page 104: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-21:

Fix

edE

ffec

tsE

stim

ates

ofth

eE

ffec

tof

the

Ref

orm

onD

rop

out

Rat

esE

xcl

udin

gSta

tes

that

Chan

ged

Min

imum

Age

Req

uir

edto

Dro

pO

ut

(Bla

cks)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Post

199

7 du

mm

y0.

0168

0.01

770.

012

(0.0

098)

(0.0

145)

(0.0

264)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.012

50.

0013

-0.0

476

(0.0

097)

(0.0

162)

(0.0

173)

Loca

l une

mpl

oym

ent r

ate

-0.0

057

-0.0

014

-0.0

173

(0.0

065)

(0.0

137)

(0.0

181)

Log

of p

er c

apita

inco

me

-0.1

582

-0.1

385

-0.1

952

(0.0

692)

(0.0

823)

(0.1

532)

Min

imum

GE

D a

ge re

quire

men

t is 1

6 0.

0693

0.08

820.

0153

(dum

my

for m

inim

um G

ED

age

requ

irem

ent s

et a

bove

18

is lef

t out

)(0

.016

7)(0

.024

0)(0

.021

1)M

inim

um G

ED

age

requ

irem

ent i

s 17

0.00

860.

0304

-0.0

44(0

.014

9)(0

.025

7)(0

.041

3)M

inim

um G

ED

age

requ

irem

ent i

s 18

0.04

990.

0537

0.03

82(0

.003

1)(0

.005

0)(0

.010

0)O

bser

vatio

ns66

6666

Num

ber o

f Sta

tes

1111

11

No

treat

men

t sta

tes a

re d

ropp

ed.

Not

e: H

uber

-Whi

te ro

bust

stan

dard

err

ors a

re in

par

enth

eses

(clu

ster

ed b

y st

ate)

. Mod

el is

estim

ated

usin

g O

LS. S

tate

15-

17 y

ear o

ld p

opul

atio

n ar

e us

ed a

s weig

hts.

Sta

tes w

ith fe

wer

than

two

obse

rvat

ions

per

per

iod

for a

ny o

f the

dro

pout

rate

mea

sure

s by

race

are

dro

pped

. The

trea

tmen

t effe

ct

repo

rted

abov

e is

the

inte

ract

ion

betw

een

the

treat

men

t sta

te d

umm

y an

d th

e po

st p

erio

d du

mm

y, w

here

the

treat

men

t sta

te d

umm

y is

equa

l to

1 fo

r tre

atm

ent s

tate

s and

the

post

per

iod

dum

my

is eq

ual t

o 1

for t

he y

ears

199

8-20

00, o

ther

wise

bot

h du

mm

ies a

re e

qual

to 0

. Tre

atm

ent s

tate

s are

th

ose

stat

es th

at w

ere

requ

ired

to e

limin

ate

the

and/

or sc

ore

optio

n. T

hese

inclu

de: L

A, M

S, N

E, N

M, T

X. T

reat

men

t sta

tes d

ropp

ed in

this

regr

essio

n du

e to

cha

nges

in m

inim

um a

ge re

quire

d to

dro

p ou

t of s

choo

l are

MS

and

NM

. Con

trol s

tate

s are

thos

e th

at a

lread

y ha

d hi

gh e

noug

h st

anda

rds b

y 19

97. T

hese

inclu

de: A

R, C

A, C

O, D

E, D

C, F

L, ID

, KY

, MD

, MO

, NJ,

NY

, ND

, OK

, OR,

SD

, UT,

WA

, WV

, WI.

Was

hing

ton

D.C

. is

the

only

one

from

the

cont

rol g

roup

dro

pped

due

to c

hang

es in

min

imum

age

requ

ired

to d

rop

out.

Cont

rol s

tate

s dro

pped

due

to m

issin

g an

d ne

gativ

e dr

opou

t rat

es in

clude

: AR,

ID, K

Y, M

O, N

D, N

J, N

Y, S

D, U

T, W

A, W

V.

65

Page 105: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-22:

Fix

edE

ffec

tsE

stim

ates

ofth

eE

ffec

tof

the

Ref

orm

onD

rop

out

Rat

esE

xcl

udin

gSta

tes

that

Chan

ged

Min

imum

Age

Req

uir

edto

Dro

pO

ut

(His

pan

ics)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Post

199

7 du

mm

y0.

0142

0.01

070.

0225

(0.0

064)

(0.0

065)

(0.0

076)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.025

8-0

.012

5-0

.059

8(0

.004

0)(0

.005

2)(0

.004

8)Lo

cal u

nem

ploy

men

t rat

e0.

0105

0.01

89-0

.012

9(0

.004

6)(0

.007

6)(0

.007

2)Lo

g of

per

cap

ita in

com

e-0

.021

30.

0507

-0.2

160

(0.0

596)

(0.0

739)

(0.0

728)

Min

imum

GE

D a

ge re

quire

men

t is 1

6 0.

0226

0.02

620.

0057

(dum

my

for m

inim

um G

ED

age

requ

irem

ent s

et a

bove

18

is lef

t out

)(0

.013

2)(0

.019

2)(0

.013

1)M

inim

um G

ED

age

requ

irem

ent i

s 17

0.03

440.

0407

0.00

79(0

.011

9)(0

.018

3)(0

.016

3)M

inim

um G

ED

age

requ

irem

ent i

s 18

0.04

010.

0509

0.01

15(0

.003

5)(0

.005

4)(0

.005

0)O

bser

vatio

ns66

6664

Num

ber o

f Sta

tes

1111

11

No

treat

men

t sta

tes a

re d

ropp

ed.

Not

e: H

uber

-Whi

te ro

bust

stan

dard

err

ors a

re in

par

enth

eses

(clu

ster

ed b

y st

ate)

. Mod

el is

estim

ated

usin

g O

LS. S

tate

15-

17 y

ear o

ld p

opul

atio

n ar

e us

ed a

s weig

hts.

Sta

tes w

ith fe

wer

than

two

obse

rvat

ions

per

per

iod

for a

ny o

f the

dro

pout

rate

mea

sure

s by

race

are

dro

pped

. The

trea

tmen

t effe

ct

repo

rted

abov

e is

the

inte

ract

ion

betw

een

the

treat

men

t sta

te d

umm

y an

d th

e po

st p

erio

d du

mm

y, w

here

the

treat

men

t sta

te d

umm

y is

equa

l to

1 fo

r tre

atm

ent s

tate

s and

the

post

per

iod

dum

my

is eq

ual t

o 1

for t

he y

ears

199

8-20

00, o

ther

wise

bot

h du

mm

ies a

re e

qual

to 0

. Tre

atm

ent s

tate

s are

thos

e st

ates

that

wer

e re

quire

d to

elim

inat

e th

e an

d/or

scor

e op

tion.

The

se in

clude

: LA

, MS,

NE

, NM

, TX

. Tre

atm

ent s

tate

s dro

pped

in th

is re

gres

sion

due

to c

hang

es in

min

imum

age

requ

ired

to d

rop

out o

f sch

ool a

re M

S an

d N

M. C

ontro

l sta

tes a

re th

ose

that

alre

ady

had

high

eno

ugh

stan

dard

s by

1997

. The

se in

clude

: AR,

CA

, CO

, DE

, DC,

FL,

ID, K

Y, M

D, M

O, N

J, N

Y, N

D, O

K, O

R, S

D, U

T, W

A, W

V, W

I. W

ashi

ngto

n D

.C. i

s the

onl

y on

e fr

om th

e co

ntro

l gro

up d

ropp

ed d

ue to

cha

nges

in m

inim

um a

ge re

quire

d to

dro

p ou

t. Co

ntro

l sta

tes d

ropp

ed d

ue to

miss

ing

and

nega

tive

drop

out r

ates

inclu

de: A

R, ID

, KY

, MO

, ND

, NJ,

NY

, SD

, UT,

WA

, WV

.

66

Page 106: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-23:

Fix

edE

ffec

tsE

stim

ates

ofth

eE

ffec

tof

the

Ref

orm

onD

rop

out

Rat

eE

xcl

udin

gSta

tes

that

Chan

ged

the

Min

imum

Age

Req

uir

edto

eith

erD

rop

Out

orT

ake

the

GE

D(A

llR

aces

)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Post

199

7 du

mm

y0.

0125

0.01

610.

003

(0.0

048)

(0.0

059)

(0.0

083)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.015

1-0

.007

8-0

.032

1(0

.004

5)(0

.006

8)(0

.006

3)Lo

cal u

nem

ploy

men

t rat

e0.

0072

0.01

42-0

.010

1(0

.003

9)(0

.007

7)(0

.007

0)Lo

g of

per

cap

ita in

com

e-0

.011

90.

0316

-0.1

167

(0.0

422)

(0.0

601)

(0.0

543)

Obs

erva

tions

7272

72N

umbe

r of S

tate

s12

1212

Not

e: H

uber

-Whi

te ro

bust

stan

dard

err

ors a

re in

par

enth

eses

(clu

ster

ed b

y st

ate)

. Mod

el is

estim

ated

usin

g O

LS. S

tate

15-

17 y

ear o

ld p

opul

atio

n ar

e us

ed a

s weig

hts.

Stat

es w

ith fe

wer

than

two

obse

rvat

ions

per

per

iod

are

drop

ped.

The

trea

tmen

t effe

ct re

porte

d ab

ove

is th

e in

tera

ctio

n be

twee

n th

e tre

atm

ent s

tate

dum

my

and

the

post

per

iod

dum

my,

whe

re th

e tre

atm

ent s

tate

dum

my

is eq

ual t

o 1

for t

reat

men

t sta

tes a

nd th

e po

st pe

riod

dum

my

is eq

ual t

o 1

for t

he y

ears

199

8-20

00, o

ther

wise

bot

h du

mm

ies a

re e

qual

to 0

. Tre

atm

ent s

tate

s are

thos

e st

ates

that

wer

e re

quire

d to

elim

inat

e th

e an

d/or

scor

e op

tion

and

did

not c

hang

e ag

e re

quire

men

ts d

urin

g pe

riod

unde

r stu

dy.

Thes

e in

clude

: LA

, TX

. Con

trol s

tate

s are

thos

e th

at a

lread

y ha

d hi

gh e

noug

h st

anda

rds b

y 19

97 a

nd d

id n

ot c

hang

e ag

e re

quire

men

ts d

urin

g pe

riod

unde

r stu

dy. T

hese

inclu

de: C

A, C

O, D

E, F

L, ID

, MD

, NJ,

NY

, ND

, WA

, WV

. Con

trol s

tate

s dro

pped

due

to m

issin

g an

d ne

gativ

e dr

opou

t rat

es in

clude

: NJ.

No

treat

men

t sta

tes a

re d

ropp

ed.

67

Page 107: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-24:

Fix

edE

ffec

tsE

stim

ates

ofth

eE

ffec

tof

the

Ref

orm

onD

rop

out

Rat

eE

xcl

udin

gSta

tes

that

Chan

ged

the

Min

imum

Age

Req

uir

edto

eith

erD

rop

Out

orT

ake

the

GE

D(W

hit

es)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Post

199

7 du

mm

y0.

0106

0.01

210.

0061

(0.0

032)

(0.0

069)

(0.0

103)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.003

80.

0016

-0.0

145

(0.0

010)

(0.0

045)

(0.0

114)

Loca

l une

mpl

oym

ent r

ate

0.00

340.

0065

-0.0

035

(0.0

026)

(0.0

056)

(0.0

058)

Log

of p

er c

apita

inco

me

-0.0

481

-0.0

305

-0.0

856

(0.0

290)

(0.0

430)

(0.0

301)

Obs

erva

tions

4242

42N

umbe

r of S

tate

s12

1212

Not

e: H

uber

-Whi

te ro

bust

stan

dard

err

ors a

re in

par

enth

eses

(clu

ster

ed b

y st

ate)

. Mod

el is

estim

ated

usin

g O

LS. S

tate

15-

17 y

ear o

ld p

opul

atio

n ar

e us

ed a

s weig

hts.

Stat

es w

ith fe

wer

than

two

obse

rvat

ions

per

per

iod

are

drop

ped.

The

trea

tmen

t effe

ct re

porte

d ab

ove

is th

e in

tera

ctio

n be

twee

n th

e tre

atm

ent s

tate

dum

my

and

the

post

per

iod

dum

my,

whe

re th

e tre

atm

ent s

tate

dum

my

is eq

ual t

o 1

for t

reat

men

t sta

tes a

nd th

e po

st pe

riod

dum

my

is eq

ual t

o 1

for t

he y

ears

199

8-20

00, o

ther

wise

bot

h du

mm

ies a

re e

qual

to 0

. Tre

atm

ent s

tate

s are

thos

e st

ates

that

wer

e re

quire

d to

elim

inat

e th

e an

d/or

scor

e op

tion

and

did

not c

hang

e ag

e re

quire

men

ts d

urin

g pe

riod

unde

r stu

dy.

Thes

e in

clude

: LA

, TX

. Con

trol s

tate

s are

thos

e th

at a

lread

y ha

d hi

gh e

noug

h st

anda

rds b

y 19

97 a

nd d

id n

ot c

hang

e ag

e re

quire

men

ts d

urin

g pe

riod

unde

r stu

dy. T

hese

inclu

de: C

A, C

O, D

E, F

L, ID

, MD

, NJ,

NY

, ND

, WA

, WV

. Con

trol s

tate

s dro

pped

due

to m

issin

g an

d ne

gativ

e dr

opou

t rat

es in

clude

: NJ,

NY

, WA

, WV

. No

treat

men

t sta

tes a

re d

ropp

ed.

68

Page 108: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-25:

Fix

edE

ffec

tsE

stim

ates

ofth

eE

ffec

tof

the

Ref

orm

onD

rop

out

Rat

eE

xcl

udin

gSta

tes

that

Chan

ged

the

Min

imum

Age

Req

uir

edto

eith

erD

rop

Out

orT

ake

the

GE

D(B

lack

s)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Post

199

7 du

mm

y0.

0178

0.01

760.

0146

(0.0

107)

(0.0

163)

(0.0

297)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.012

80.

0016

-0.0

488

(0.0

108)

(0.0

176)

(0.0

188)

Loca

l une

mpl

oym

ent r

ate

-0.0

025

0.00

24-0

.017

1(0

.006

6)(0

.014

0)(0

.020

5)Lo

g of

per

cap

ita in

com

e-0

.131

4-0

.103

1-0

.202

3(0

.073

7)(0

.074

0)(0

.169

6)O

bser

vatio

ns42

4242

Num

ber o

f Sta

tes

1212

12N

ote:

Hub

er-W

hite

robu

st st

anda

rd e

rror

s are

in p

aren

thes

es (c

lust

ered

by

stat

e). M

odel

is es

timat

ed u

sing

OLS

. Sta

te 1

5-17

yea

r old

pop

ulat

ion

are

used

as w

eight

s. St

ates

with

few

er th

an tw

o ob

serv

atio

ns p

er p

erio

d ar

e dr

oppe

d. T

he tr

eatm

ent e

ffect

repo

rted

abov

e is

the

inte

ract

ion

betw

een

the

treat

men

t sta

te d

umm

y an

d th

e po

st p

erio

d du

mm

y, w

here

the

treat

men

t sta

te d

umm

y is

equa

l to

1 fo

r tre

atm

ent s

tate

s and

the

post

perio

d du

mm

y is

equa

l to

1 fo

r the

yea

rs 1

998-

2000

, oth

erw

ise b

oth

dum

mies

are

equ

al to

0. T

reat

men

t sta

tes a

re th

ose

stat

es th

at w

ere

requ

ired

to e

limin

ate

the

and/

or sc

ore

optio

n an

d di

d no

t cha

nge

age

requ

irem

ents

dur

ing

perio

d un

der s

tudy

. Th

ese

inclu

de: L

A, T

X. C

ontro

l sta

tes a

re th

ose

that

alre

ady

had

high

eno

ugh

stan

dard

s by

1997

and

did

not

cha

nge

age

requ

irem

ents

dur

ing

perio

d un

der s

tudy

. The

se in

clude

: CA

, CO

, DE

, FL,

ID, M

D, N

J, N

Y, N

D, W

A, W

V. C

ontro

l sta

tes d

ropp

ed d

ue to

miss

ing

and

nega

tive

drop

out r

ates

inclu

de: N

J, N

Y, W

A, W

V. N

o tre

atm

ent s

tate

s are

dro

pped

.

69

Page 109: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-26:

Fix

edE

ffec

tsE

stim

ates

ofth

eE

ffec

tof

the

Ref

orm

onD

rop

out

Rat

eE

xcl

udin

gSta

tes

that

Chan

ged

the

Min

imum

Age

Req

uir

edto

eith

erD

rop

Out

orT

ake

the

GE

D(H

ispan

ics)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Post

199

7 du

mm

y0.

0147

0.01

160.

0219

(0.0

070)

(0.0

078)

(0.0

069)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.027

4-0

.015

3-0

.057

5(0

.004

7)(0

.006

0)(0

.005

9)Lo

cal u

nem

ploy

men

t rat

e0.

0123

0.02

21-0

.015

5(0

.005

4)(0

.008

7)(0

.008

2)Lo

g of

per

cap

ita in

com

e-0

.004

80.

0809

-0.2

417

(0.0

663)

(0.0

811)

(0.0

803)

Obs

erva

tions

4242

41N

umbe

r of S

tate

s12

1212

Not

e: H

uber

-Whi

te ro

bust

stan

dard

err

ors a

re in

par

enth

eses

(clu

ster

ed b

y st

ate)

. Mod

el is

estim

ated

usin

g O

LS. S

tate

15-

17 y

ear o

ld p

opul

atio

n ar

e us

ed a

s weig

hts.

Stat

es w

ith fe

wer

than

two

obse

rvat

ions

per

per

iod

are

drop

ped.

The

trea

tmen

t effe

ct re

porte

d ab

ove

is th

e in

tera

ctio

n be

twee

n th

e tre

atm

ent s

tate

dum

my

and

the

post

per

iod

dum

my,

whe

re th

e tre

atm

ent s

tate

dum

my

is eq

ual t

o 1

for t

reat

men

t sta

tes a

nd th

e po

st pe

riod

dum

my

is eq

ual t

o 1

for t

he y

ears

199

8-20

00, o

ther

wise

bot

h du

mm

ies a

re e

qual

to 0

. Tre

atm

ent s

tate

s are

thos

e st

ates

that

wer

e re

quire

d to

elim

inat

e th

e an

d/or

scor

e op

tion

and

did

not c

hang

e ag

e re

quire

men

ts d

urin

g pe

riod

unde

r stu

dy.

Thes

e in

clude

: LA

, TX

. Con

trol s

tate

s are

thos

e th

at a

lread

y ha

d hi

gh e

noug

h st

anda

rds b

y 19

97 a

nd d

id n

ot c

hang

e ag

e re

quire

men

ts d

urin

g pe

riod

unde

r stu

dy. T

hese

inclu

de: C

A, C

O, D

E, F

L, ID

, MD

, NJ,

NY

, ND

, WA

, WV

. Con

trol s

tate

s dro

pped

due

to m

issin

g an

d ne

gativ

e dr

opou

t rat

es in

clude

: NJ,

NY

, WA

, WV

. No

treat

men

t sta

tes a

re d

ropp

ed.

70

Page 110: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-27:

GL

SF

ixed

Eff

ects

Est

imat

esof

the

Eff

ect

ofth

eR

efor

mon

Dro

pou

tR

ates

Con

trol

ling

for

Age

Req

uir

emen

ts(A

llR

aces

)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Post

199

7 du

mm

y0.

0079

0.01

110.

0027

(0.0

022)

(0.0

026)

(0.0

033)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.012

7-0

.007

7-0

.027

(0.0

021)

(0.0

021)

(0.0

049)

Loca

l une

mpl

oym

ent r

ate

0.00

220.

0039

-0.0

034

(0.0

011)

(0.0

015)

(0.0

017)

Log

of p

er c

apita

inco

me

-0.0

370

-0.0

285

-0.0

680

(0.0

118)

(0.0

135)

(0.0

180)

Min

imum

GE

D a

ge re

quire

men

t is 1

6 0.

0072

0.01

26-0

.002

0(d

umm

y fo

r min

imum

GE

D a

ge re

quire

men

t set

abo

ve 1

8 is

left o

ut)

(0.0

030)

(0.0

041)

(0.0

035)

Min

imum

GE

D a

ge re

quire

men

t is 1

7 0.

0021

0.00

77-0

.013

4(0

.004

4)(0

.005

0)(0

.008

2)M

inim

um G

ED

age

requ

irem

ent i

s 18

0.00

590.

01-0

.004

8(0

.002

5)(0

.003

6)(0

.003

0)M

inim

um sc

hool

leav

ing

age

is 16

0.00

230.

0009

0.00

47(d

umm

y fo

r min

imum

scho

ol le

avin

g ag

e se

t abo

ve 1

7 is

left o

ut)

(0.0

056)

(0.0

041)

(0.0

106)

Min

imum

scho

ol le

avin

g ag

e is

170.

0059

0.00

290.

0097

(0.0

076)

(0.0

073)

(0.0

129)

Obs

erva

tions

144

144

142

Num

ber o

f Sta

tes

2424

24N

ote:

Hub

er-W

hite

robu

st st

anda

rd e

rror

s are

in p

aren

thes

es (c

lust

ered

by

stat

e). M

odel

is es

timat

ed u

sing

GLS

. Sta

te 1

5-17

yea

r old

pop

ulat

ions

are

us

ed a

s weig

hts.

The

treat

men

t effe

ct re

porte

d ab

ove

is th

e in

tera

ctio

n be

twee

n th

e tre

atm

ent s

tate

dum

my

and

the

post

199

7 du

mm

y, w

here

the

treat

men

t sta

te d

umm

y is

equa

l to

1 fo

r tre

atm

ent s

tate

s and

the

post

199

7 du

mm

y is

equa

l to

1 fo

r the

yea

rs 1

998-

2000

, oth

erw

ise b

oth

dum

mies

ar

e eq

ual t

o 0.

Sta

tes w

ith fe

wer

than

two

obse

rvat

ions

per

per

iod

are

drop

ped.

Tre

atm

ent s

tate

s are

thos

e st

ates

that

wer

e re

quire

d to

elim

inat

e th

e an

d/or

scor

e op

tion.

The

se in

clude

: LA

, MS,

NE

, NM

, TX

. Con

trol s

tate

s are

thos

e th

at a

lread

y ha

d hi

gh e

noug

h st

anda

rds b

y 19

97. T

hese

inclu

de:

AR,

CA

, CO

, DE

, DC,

FL,

ID, K

Y, M

D, M

O, N

Y, N

D, O

K, O

R, S

D, U

T, W

A, W

V, W

I. C

ontro

l sta

tes d

ropp

ed d

ue to

miss

ing

and

nega

tive

drop

out r

ates

inclu

de: N

J. N

o tre

atm

ent s

tate

s are

dro

pped

.

71

Page 111: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-28:

GL

SF

ixed

Eff

ects

Est

imat

esof

the

Eff

ect

ofth

eR

efor

mon

Dro

pou

tR

ates

Con

trol

ling

for

Age

Req

uir

emen

ts(W

hit

es)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Post

199

7 du

mm

y0.

007

0.00

860.

0008

(0.0

019)

(0.0

022)

(0.0

035)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.004

20.

0005

-0.0

118

(0.0

015)

(0.0

017)

(0.0

041)

Loca

l une

mpl

oym

ent r

ate

0.00

380.

0051

-0.0

007

(0.0

010)

(0.0

016)

(0.0

018)

Log

of p

er c

apita

inco

me

-0.0

297

-0.0

201

-0.0

528

(0.0

100)

(0.0

124)

(0.0

181)

Min

imum

GE

D a

ge re

quire

men

t is 1

6 0.

0039

0.00

87-0

.004

4(d

umm

y fo

r min

imum

GE

D a

ge re

quire

men

t set

abo

ve 1

8 is

left o

ut)

(0.0

024)

(0.0

033)

(0.0

033)

Min

imum

GE

D a

ge re

quire

men

t is 1

7 0.

0054

0.00

92-0

.013

8(0

.005

1)(0

.007

1)(0

.010

8)M

inim

um G

ED

age

requ

irem

ent i

s 18

0.00

230.

0046

-0.0

036

(0.0

012)

(0.0

021)

(0.0

022)

Min

imum

scho

ol le

avin

g ag

e is

160.

0159

0.01

590.

0114

(dum

my

for m

inim

um sc

hool

leav

ing

age

set a

bove

17

is lef

t out

)(0

.008

9)(0

.012

9)(0

.013

6)M

inim

um sc

hool

leav

ing

age

is 17

0.01

950.

0194

0.00

1(0

.010

6)(0

.015

1)(0

.018

3)O

bser

vatio

ns84

8382

Num

ber o

f Sta

tes

1414

14N

ote:

Hub

er-W

hite

robu

st st

anda

rd e

rror

s are

in p

aren

thes

es (c

lust

ered

by

stat

e). M

odel

is es

timat

ed u

sing

GLS

. Sta

te 1

5-17

yea

r old

pop

ulat

ions

are

us

ed a

s weig

hts.

The

treat

men

t effe

ct re

porte

d ab

ove

is th

e in

tera

ctio

n be

twee

n th

e tre

atm

ent s

tate

dum

my

and

the

post

199

7 du

mm

y, w

here

the

treat

men

t sta

te d

umm

y is

equa

l to

1 fo

r tre

atm

ent s

tate

s and

the

post

199

7 du

mm

y is

equa

l to

1 fo

r the

yea

rs 1

998-

2000

, oth

erw

ise b

oth

dum

mies

ar

e eq

ual t

o 0.

Sta

tes w

ith fe

wer

than

two

obse

rvat

ions

per

per

iod

for a

ny o

f the

dro

pout

rate

mea

sure

s by

race

are

dro

pped

. Tre

atm

ent s

tate

s are

th

ose

stat

es th

at w

ere

requ

ired

to e

limin

ate

the

and/

or sc

ore

optio

n. T

hese

inclu

de: L

A, M

S, N

E, N

M, T

X. C

ontro

l sta

tes a

re th

ose

that

alre

ady

had

high

eno

ugh

stan

dard

s by

1997

. The

se in

clude

: AR,

CA

, CO

, DE

, DC,

FL,

ID, K

Y, M

D, M

O, N

Y, N

D, O

K, O

R, S

D, U

T, W

A, W

V, W

I. C

ontro

l st

ates

dro

pped

due

to m

issin

g an

d ne

gativ

e dr

opou

t rat

es in

clude

: AR,

ID, K

Y, M

O, N

D, N

J, N

Y, S

D, U

T, W

A, W

V. N

o tre

atm

ent s

tate

s are

dr

oppe

d.

72

Page 112: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-29:

GL

SF

ixed

Eff

ects

Est

imat

esof

the

Eff

ect

ofth

eR

efor

mon

Dro

pou

tR

ates

Con

trol

ling

for

Age

Req

uir

emen

ts(B

lack

s)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Post

199

7 du

mm

y0.

0172

0.01

40.

0136

(0.0

056)

(0.0

082)

(0.0

116)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.016

-0.0

071

-0.0

386

(0.0

043)

(0.0

061)

(0.0

107)

Loca

l une

mpl

oym

ent r

ate

-0.0

065

-0.0

025

0.00

30(0

.003

3)(0

.005

2)(0

.005

3)Lo

g of

per

cap

ita in

com

e-0

.157

7-0

.097

6-0

.043

7(0

.031

1)(0

.044

1)(0

.054

4)M

inim

um G

ED

age

requ

irem

ent i

s 16

0.05

740.

0676

0.04

93(d

umm

y fo

r min

imum

GE

D a

ge re

quire

men

t set

abo

ve 1

8 is

left o

ut)

(0.0

143)

(0.0

217)

(0.0

122)

Min

imum

GE

D a

ge re

quire

men

t is 1

7 0.

023

0.04

06-0

.008

3(0

.022

2)(0

.035

2)(0

.019

9)M

inim

um G

ED

age

requ

irem

ent i

s 18

0.05

0.05

520.

0498

(0.0

133)

(0.0

203)

(0.0

107)

Min

imum

scho

ol le

avin

g ag

e is

160.

0395

0.06

210.

0334

(dum

my

for m

inim

um sc

hool

leav

ing

age

set a

bove

17

is lef

t out

)(0

.016

0)(0

.029

1)(0

.020

6)M

inim

um sc

hool

leav

ing

age

is 17

0.02

420.

0494

-0.0

04(0

.024

8)(0

.034

3)(0

.024

0)O

bser

vatio

ns84

8482

Num

ber o

f Sta

tes

1414

14N

ote:

Hub

er-W

hite

robu

st st

anda

rd e

rror

s are

in p

aren

thes

es (c

lust

ered

by

stat

e). M

odel

is es

timat

ed u

sing

GLS

. Sta

te 1

5-17

yea

r old

pop

ulat

ions

are

us

ed a

s weig

hts.

The

treat

men

t effe

ct re

porte

d ab

ove

is th

e in

tera

ctio

n be

twee

n th

e tre

atm

ent s

tate

dum

my

and

the

post

199

7 du

mm

y, w

here

the

treat

men

t sta

te d

umm

y is

equa

l to

1 fo

r tre

atm

ent s

tate

s and

the

post

199

7 du

mm

y is

equa

l to

1 fo

r the

yea

rs 1

998-

2000

, oth

erw

ise b

oth

dum

mies

ar

e eq

ual t

o 0.

Sta

tes w

ith fe

wer

than

two

obse

rvat

ions

per

per

iod

for a

ny o

f the

dro

pout

rate

mea

sure

s by

race

are

dro

pped

. Tre

atm

ent s

tate

s are

th

ose

stat

es th

at w

ere

requ

ired

to e

limin

ate

the

and/

or sc

ore

optio

n. T

hese

inclu

de: L

A, M

S, N

E, N

M, T

X. C

ontro

l sta

tes a

re th

ose

that

alre

ady

had

high

eno

ugh

stan

dard

s by

1997

. The

se in

clude

: AR,

CA

, CO

, DE

, DC,

FL,

ID, K

Y, M

D, M

O, N

Y, N

D, O

K, O

R, S

D, U

T, W

A, W

V, W

I. C

ontro

l st

ates

dro

pped

due

to m

issin

g an

d ne

gativ

e dr

opou

t rat

es in

clude

: AR,

ID, K

Y, M

O, N

D, N

J, N

Y, S

D, U

T, W

A, W

V. N

o tre

atm

ent s

tate

s are

dr

oppe

d.

73

Page 113: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-30:

GL

SF

ixed

Eff

ects

Est

imat

esof

the

Eff

ect

ofth

eR

efor

mon

Dro

pou

tR

ates

Con

trol

ling

for

Age

Req

uir

emen

ts(H

ispan

ics)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Post

199

7 du

mm

y0.

013

0.01

480.

0258

(0.0

048)

(0.0

063)

(0.0

086)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.026

5-0

.015

5-0

.064

4(0

.004

6)(0

.005

5)(0

.006

5)Lo

cal u

nem

ploy

men

t rat

e0.

0118

0.02

31-0

.004

6(0

.002

7)(0

.003

6)(0

.003

8)Lo

g of

per

cap

ita in

com

e-0

.007

50.

0709

-0.1

568

(0.0

293)

(0.0

367)

(0.0

421)

Min

imum

GE

D a

ge re

quire

men

t is 1

6 0.

0290

0.04

540.

0143

(dum

my

for m

inim

um G

ED

age

requ

irem

ent s

et a

bove

18

is lef

t out

)(0

.017

4)(0

.025

2)(0

.017

1)M

inim

um G

ED

age

requ

irem

ent i

s 17

0.03

420.

0526

0.00

86(0

.019

5)(0

.027

7)(0

.018

8)M

inim

um G

ED

age

requ

irem

ent i

s 18

0.04

070.

054

0.01

73(0

.015

5)(0

.023

0)(0

.014

7)M

inim

um sc

hool

leav

ing

age

is 16

-0.0

027

0.00

62-0

.018

1(d

umm

y fo

r min

imum

scho

ol le

avin

g ag

e se

t abo

ve 1

7 is

left o

ut)

(0.0

114)

(0.0

136)

(0.0

101)

Min

imum

scho

ol le

avin

g ag

e is

170.

0706

0.08

77-0

.018

9(0

.014

7)(0

.022

9)(0

.042

6)O

bser

vatio

ns84

8382

Num

ber o

f Sta

tes

1414

14N

ote:

Hub

er-W

hite

robu

st st

anda

rd e

rror

s are

in p

aren

thes

es (c

lust

ered

by

stat

e). M

odel

is es

timat

ed u

sing

GLS

. Sta

te 1

5-17

yea

r old

pop

ulat

ions

are

us

ed a

s weig

hts.

The

treat

men

t effe

ct re

porte

d ab

ove

is th

e in

tera

ctio

n be

twee

n th

e tre

atm

ent s

tate

dum

my

and

the

post

199

7 du

mm

y, w

here

the

treat

men

t sta

te d

umm

y is

equa

l to

1 fo

r tre

atm

ent s

tate

s and

the

post

199

7 du

mm

y is

equa

l to

1 fo

r the

yea

rs 1

998-

2000

, oth

erw

ise b

oth

dum

mies

ar

e eq

ual t

o 0.

Sta

tes w

ith fe

wer

than

two

obse

rvat

ions

per

per

iod

for a

ny o

f the

dro

pout

rate

mea

sure

s by

race

are

dro

pped

. Tre

atm

ent s

tate

s are

th

ose

stat

es th

at w

ere

requ

ired

to e

limin

ate

the

and/

or sc

ore

optio

n. T

hese

inclu

de: L

A, M

S, N

E, N

M, T

X. C

ontro

l sta

tes a

re th

ose

that

alre

ady

had

high

eno

ugh

stan

dard

s by

1997

. The

se in

clude

: AR,

CA

, CO

, DE

, DC,

FL,

ID, K

Y, M

D, M

O, N

Y, N

D, O

K, O

R, S

D, U

T, W

A, W

V, W

I. C

ontro

l st

ates

dro

pped

due

to m

issin

g an

d ne

gativ

e dr

opou

t rat

es in

clude

: AR,

ID, K

Y, M

O, N

D, N

J, N

Y, S

D, U

T, W

A, W

V. N

o tre

atm

ent s

tate

s are

dr

oppe

d.

74

Page 114: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-31:

GL

SF

ixed

Eff

ects

Est

imat

esof

the

Eff

ect

ofth

eR

efor

mon

Dro

pou

tR

ates

Con

trol

ling

for

Age

Req

uir

emen

tsan

dU

sing

Pan

elSp

ecifi

cA

R-1

Auto

corr

elat

ion

Str

uct

ure

(All

Rac

es)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Post

199

7 du

mm

y0.

0076

0.01

220.

0018

(0.0

019)

(0.0

019)

(0.0

024)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.013

7-0

.009

-0.0

283

(0.0

017)

(0.0

019)

(0.0

038)

Loca

l une

mpl

oym

ent r

ate

0.00

270.

0049

-0.0

068

(0.0

010)

(0.0

012)

(0.0

016)

Log

of p

er c

apita

inco

me

-0.0

283

-0.0

207

-0.0

925

(0.0

106)

(0.0

106)

(0.0

135)

Min

imum

GE

D a

ge re

quire

men

t is 1

6 0.

0077

0.01

50-0

.003

2(d

umm

y fo

r min

imum

GE

D a

ge re

quire

men

t set

abo

ve 1

8 is

left o

ut)

(0.0

026)

(0.0

019)

(0.0

023)

Min

imum

GE

D a

ge re

quire

men

t is 1

7 0.

0036

0.01

29-0

.008

5(0

.004

2)(0

.003

6)(0

.007

0)M

inim

um G

ED

age

requ

irem

ent i

s 18

0.00

520.

0119

-0.0

062

(0.0

024)

(0.0

011)

(0.0

012)

Min

imum

scho

ol le

avin

g ag

e is

160.

005

0.00

320.

0067

(dum

my

for m

inim

um sc

hool

leav

ing

age

set a

bove

17

is lef

t out

)(0

.005

4)(0

.005

0)(0

.010

2)M

inim

um sc

hool

leav

ing

age

is 17

0.01

210.

0098

0.02

18(0

.007

5)(0

.008

2)(0

.012

5)O

bser

vatio

ns14

414

414

2N

umbe

r of S

tate

s24

2424

Not

e: H

uber

-Whi

te ro

bust

stan

dard

err

ors a

re in

par

enth

eses

(clu

ster

ed b

y st

ate)

. Mod

el is

estim

ated

usin

g G

LS u

sing

pane

l spe

cific

AR-

1 au

toco

rrela

tion

stru

ctur

e. St

ate

15-1

7 ye

ar o

ld p

opul

atio

ns a

re u

sed

as w

eight

s. Th

e tre

atm

ent e

ffect

repo

rted

abov

e is

the

inte

ract

ion

betw

een

the

treat

men

t sta

te d

umm

y an

d th

e po

st 1

997

dum

my,

whe

re th

e tre

atm

ent s

tate

dum

my

is eq

ual t

o 1

for t

reat

men

t sta

tes a

nd th

e po

st 1

997

dum

my

is eq

ual t

o 1

for t

he y

ears

199

8-20

00, o

ther

wise

bot

h du

mm

ies a

re e

qual

to 0

. Sta

tes w

ith fe

wer

than

two

obse

rvat

ions

per

per

iod

are

drop

ped.

Tr

eatm

ent s

tate

s are

thos

e st

ates

that

wer

e re

quire

d to

elim

inat

e th

e an

d/or

scor

e op

tion.

The

se in

clude

: LA

, MS,

NE

, NM

, TX

. Con

trol s

tate

s are

th

ose

that

alre

ady

had

high

eno

ugh

stan

dard

s by

1997

. The

se in

clude

: AR,

CA

, CO

, DE

, DC,

FL,

ID, K

Y, M

D, M

O, N

Y, N

D, O

K, O

R, S

D, U

T,

WA

, WV

, WI.

Con

trol s

tate

s dro

pped

due

to m

issin

g an

d ne

gativ

e dr

opou

t rat

es in

clude

: NJ.

No

treat

men

t sta

tes a

re d

ropp

ed.

75

Page 115: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-32:

GL

SF

ixed

Eff

ects

Est

imat

esof

the

Eff

ect

ofth

eR

efor

mon

Dro

pou

tR

ates

Con

trol

ling

for

Age

Req

uir

emen

tsan

dU

sing

Pan

elSp

ecifi

cA

R-1

Auto

corr

elat

ion

Str

uct

ure

(Whit

es)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Post

199

7 du

mm

y0.

0076

0.00

930.

0042

(0.0

017)

(0.0

019)

(0.0

035)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.005

1-0

.000

5-0

.017

(0.0

012)

(0.0

015)

(0.0

033)

Loca

l une

mpl

oym

ent r

ate

0.00

340.

0041

-0.0

030

(0.0

010)

(0.0

015)

(0.0

016)

Log

of p

er c

apita

inco

me

-0.0

312

-0.0

251

-0.0

638

(0.0

091)

(0.0

113)

(0.0

177)

Min

imum

GE

D a

ge re

quire

men

t is 1

6 0.

0042

0.00

93-0

.005

1(d

umm

y fo

r min

imum

GE

D a

ge re

quire

men

t set

abo

ve 1

8 is

left o

ut)

(0.0

021)

(0.0

030)

(0.0

037)

Min

imum

GE

D a

ge re

quire

men

t is 1

7 0.

0049

0.00

93-0

.025

1(0

.004

4)(0

.005

5)(0

.009

5)M

inim

um G

ED

age

requ

irem

ent i

s 18

0.00

220.

0045

-0.0

033

(0.0

009)

(0.0

020)

(0.0

027)

Min

imum

scho

ol le

avin

g ag

e is

160.

0179

0.01

930.

0122

(dum

my

for m

inim

um sc

hool

leav

ing

age

set a

bove

17

is lef

t out

)(0

.009

4)(0

.011

8)(0

.007

5)M

inim

um sc

hool

leav

ing

age

is 17

0.02

110.

0228

-0.0

076

(0.0

106)

(0.0

129)

(0.0

127)

Obs

erva

tions

8483

82N

umbe

r of S

tate

s14

1414

Not

e: H

uber

-Whi

te ro

bust

stan

dard

err

ors a

re in

par

enth

eses

(clu

ster

ed b

y st

ate)

. Mod

el is

estim

ated

usin

g G

LS u

sing

pane

l spe

cific

AR-

1 au

toco

rrela

tion

stru

ctur

e. St

ate

15-1

7 ye

ar o

ld p

opul

atio

ns a

re u

sed

as w

eight

s. Th

e tre

atm

ent e

ffect

repo

rted

abov

e is

the

inte

ract

ion

betw

een

the

treat

men

t sta

te d

umm

y an

d th

e po

st 1

997

dum

my,

whe

re th

e tre

atm

ent s

tate

dum

my

is eq

ual t

o 1

for t

reat

men

t sta

tes a

nd th

e po

st 1

997

dum

my

is eq

ual t

o 1

for t

he y

ears

199

8-20

00, o

ther

wise

bot

h du

mm

ies a

re e

qual

to 0

. Sta

tes w

ith fe

wer

than

two

obse

rvat

ions

per

per

iod

for a

ny o

f the

dr

opou

t rat

e m

easu

res b

y ra

ce a

re d

ropp

ed. T

reat

men

t sta

tes a

re th

ose

stat

es th

at w

ere

requ

ired

to e

limin

ate

the

and/

or sc

ore

optio

n. T

hese

inclu

de:

LA, M

S, N

E, N

M, T

X. C

ontro

l sta

tes a

re th

ose

that

alre

ady

had

high

eno

ugh

stan

dard

s by

1997

. The

se in

clude

: AR,

CA

, CO

, DE

, DC,

FL,

ID, K

Y,

MD

, MO

, NY

, ND

, OK

, OR,

SD

, UT,

WA

, WV

, WI.

Cont

rol s

tate

s dro

pped

due

to m

issin

g an

d ne

gativ

e dr

opou

t rat

es in

clude

: AR,

ID, K

Y, M

O,

ND

, NJ,

NY

, SD

, UT,

WA

, WV

. No

treat

men

t sta

tes a

re d

ropp

ed.

76

Page 116: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-33:

GL

SF

ixed

Eff

ects

Est

imat

esof

the

Eff

ect

ofth

eR

efor

mon

Dro

pou

tR

ates

Con

trol

ling

for

Age

Req

uir

emen

tsan

dU

sing

Pan

elSp

ecifi

cA

R-1

Auto

corr

elat

ion

Str

uct

ure

(Bla

cks)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Post

199

7 du

mm

y0.

0169

0.01

140.

013

(0.0

041)

(0.0

073)

(0.0

111)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.015

6-0

.008

9-0

.040

4(0

.003

4)(0

.005

8)(0

.009

9)Lo

cal u

nem

ploy

men

t rat

e-0

.007

5-0

.006

50.

0014

(0.0

031)

(0.0

049)

(0.0

053)

Log

of p

er c

apita

inco

me

-0.1

653

-0.1

084

-0.0

613

(0.0

278)

(0.0

415)

(0.0

540)

Min

imum

GE

D a

ge re

quire

men

t is 1

6 0.

0622

0.07

320.

0457

(dum

my

for m

inim

um G

ED

age

requ

irem

ent s

et a

bove

18

is lef

t out

)(0

.012

5)(0

.018

9)(0

.012

5)M

inim

um G

ED

age

requ

irem

ent i

s 17

0.03

090.

0401

-0.0

16(0

.020

4)(0

.031

4)(0

.018

5)M

inim

um G

ED

age

requ

irem

ent i

s 18

0.05

320.

0603

0.04

73(0

.011

3)(0

.017

7)(0

.010

6)M

inim

um sc

hool

leav

ing

age

is 16

0.04

950.

0772

0.02

92(d

umm

y fo

r min

imum

scho

ol le

avin

g ag

e se

t abo

ve 1

7 is

left o

ut)

(0.0

174)

(0.0

279)

(0.0

146)

Min

imum

scho

ol le

avin

g ag

e is

170.

0388

0.06

06-0

.008

3(0

.022

1)(0

.026

8)(0

.019

5)O

bser

vatio

ns84

8482

Num

ber o

f Sta

tes

1414

14N

ote:

Hub

er-W

hite

robu

st st

anda

rd e

rror

s are

in p

aren

thes

es (c

lust

ered

by

stat

e). M

odel

is es

timat

ed u

sing

GLS

usin

g pa

nel s

pecif

ic A

R-1

auto

corr

elatio

n st

ruct

ure.

Stat

e 15

-17

year

old

pop

ulat

ions

are

use

d as

weig

hts.

The

treat

men

t effe

ct re

porte

d ab

ove

is th

e in

tera

ctio

n be

twee

n th

e tre

atm

ent s

tate

dum

my

and

the

post

199

7 du

mm

y, w

here

the

treat

men

t sta

te d

umm

y is

equa

l to

1 fo

r tre

atm

ent s

tate

s and

the

post

199

7 du

mm

y is

equa

l to

1 fo

r the

yea

rs 1

998-

2000

, oth

erw

ise b

oth

dum

mies

are

equ

al to

0. S

tate

s with

few

er th

an tw

o ob

serv

atio

ns p

er p

erio

d fo

r any

of t

he

drop

out r

ate

mea

sure

s by

race

are

dro

pped

. Tre

atm

ent s

tate

s are

thos

e st

ates

that

wer

e re

quire

d to

elim

inat

e th

e an

d/or

scor

e op

tion.

The

se

inclu

de: L

A, M

S, N

E, N

M, T

X. C

ontro

l sta

tes a

re th

ose

that

alre

ady

had

high

eno

ugh

stan

dard

s by

1997

. The

se in

clude

: AR,

CA

, CO

, DE

, DC,

FL,

ID

, KY

, MD

, MO

, NY

, ND

, OK

, OR,

SD

, UT,

WA

, WV

, WI.

Cont

rol s

tate

s dro

pped

due

to m

issin

g an

d ne

gativ

e dr

opou

t rat

es in

clude

: AR,

ID,

KY

, MO

, ND

, NJ,

NY

, SD

, UT,

WA

, WV

. No

treat

men

t sta

tes a

re d

ropp

ed.

77

Page 117: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-34:

GL

SF

ixed

Eff

ects

Est

imat

esof

the

Eff

ect

ofth

eR

efor

mon

Dro

pou

tR

ates

Con

trol

ling

for

Age

Req

uir

emen

tsan

dU

sing

Pan

elSp

ecifi

cA

R-1

Auto

corr

elat

ion

Str

uct

ure

(His

pan

ics)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Post

199

7 du

mm

y0.

0093

0.01

0.02

44(0

.004

3)(0

.005

6)(0

.008

3)Sc

ore

optio

n ch

ange

r sta

te p

ost 1

997

(trea

tmen

t effe

ct)

-0.0

249

-0.0

115

-0.0

645

(0.0

036)

(0.0

047)

(0.0

058)

Loca

l une

mpl

oym

ent r

ate

0.01

120.

0198

-0.0

057

(0.0

022)

(0.0

030)

(0.0

035)

Log

of p

er c

apita

inco

me

-0.0

025

0.05

17-0

.153

9(0

.026

1)(0

.032

7)(0

.041

5)M

inim

um G

ED

age

requ

irem

ent i

s 16

0.02

670.

0356

0.01

27(d

umm

y fo

r min

imum

GE

D a

ge re

quire

men

t set

abo

ve 1

8 is

left o

ut)

(0.0

163)

(0.0

189)

(0.0

169)

Min

imum

GE

D a

ge re

quire

men

t is 1

7 0.

0314

0.04

790.

0047

(0.0

185)

(0.0

217)

(0.0

185)

Min

imum

GE

D a

ge re

quire

men

t is 1

8 0.

0418

0.05

770.

0173

(0.0

147)

(0.0

167)

(0.0

146)

Min

imum

scho

ol le

avin

g ag

e is

16-0

.008

6-0

.005

3-0

.019

1(d

umm

y fo

r min

imum

scho

ol le

avin

g ag

e se

t abo

ve 1

7 is

left o

ut)

(0.0

092)

(0.0

106)

(0.0

098)

Min

imum

scho

ol le

avin

g ag

e is

170.

0713

0.09

11-0

.037

4(0

.008

7)(0

.015

8)(0

.035

3)O

bser

vatio

ns84

8382

Num

ber o

f Sta

tes

1414

14N

ote:

Hub

er-W

hite

robu

st st

anda

rd e

rror

s are

in p

aren

thes

es (c

lust

ered

by

stat

e). M

odel

is es

timat

ed u

sing

GLS

usin

g pa

nel s

pecif

ic A

R-1

auto

corr

elatio

n st

ruct

ure.

Stat

e 15

-17

year

old

pop

ulat

ions

are

use

d as

weig

hts.

The

treat

men

t effe

ct re

porte

d ab

ove

is th

e in

tera

ctio

n be

twee

n th

e tre

atm

ent s

tate

dum

my

and

the

post

199

7 du

mm

y, w

here

the

treat

men

t sta

te d

umm

y is

equa

l to

1 fo

r tre

atm

ent s

tate

s and

the

post

199

7 du

mm

y is

equa

l to

1 fo

r the

yea

rs 1

998-

2000

, oth

erw

ise b

oth

dum

mies

are

equ

al to

0. S

tate

s with

few

er th

an tw

o ob

serv

atio

ns p

er p

erio

d fo

r any

of t

he

drop

out r

ate

mea

sure

s by

race

are

dro

pped

. Tre

atm

ent s

tate

s are

thos

e st

ates

that

wer

e re

quire

d to

elim

inat

e th

e an

d/or

scor

e op

tion.

The

se in

clude

: LA

, MS,

NE

, NM

, TX

. Con

trol s

tate

s are

thos

e th

at a

lread

y ha

d hi

gh e

noug

h st

anda

rds b

y 19

97. T

hese

inclu

de: A

R, C

A, C

O, D

E, D

C, F

L, ID

, KY

, M

D, M

O, N

Y, N

D, O

K, O

R, S

D, U

T, W

A, W

V, W

I. Co

ntro

l sta

tes d

ropp

ed d

ue to

miss

ing

and

nega

tive

drop

out r

ates

inclu

de: A

R, ID

, KY

, MO

, N

D, N

J, N

Y, S

D, U

T, W

A, W

V. N

o tre

atm

ent s

tate

s are

dro

pped

.

78

Page 118: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-35:

Diff

eren

ce-i

n-D

iffer

ence

Est

imat

esof

the

Eff

ect

ofth

eR

efor

mon

Dro

pou

tR

ates

Con

trol

ling

for

Age

Req

uir

emen

tsan

dR

estr

icti

ng

Con

trol

Gro

up

toC

alif

ornia

and

Flo

rida

(Hig

hIm

mig

rant

Sta

tes)

(All

Rac

es)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Scor

e op

tion

chan

ger s

tate

-0.0

16-0

.016

6-0

.013

6(0

.012

7)(0

.014

6)(0

.009

1)Sc

ore

optio

n ch

ange

r sta

te p

ost 1

997

(trea

tmen

t effe

ct)

-0.0

069

0.00

56-0

.036

5(0

.006

3)(0

.012

2)(0

.013

2)Po

st 1

997

dum

my

-0.0

086

-0.0

126

0.00

07(0

.005

5)(0

.012

1)(0

.011

8)Co

nsta

nt0.

1214

0.12

900.

1014

(0.0

111)

(0.0

132)

(0.0

050)

Obs

erva

tions

4242

42N

umbe

r of S

tate

s7

77

Not

e: H

uber

-Whi

te ro

bust

stan

dard

err

ors a

re in

par

enth

eses

(clu

ster

ed b

y st

ate)

. Mod

el is

estim

ated

usin

g O

LS. S

tate

15-

17 y

ear o

ld p

opul

atio

ns a

re

used

as w

eight

s. Th

e tre

atm

ent e

ffect

repo

rted

abov

e is

the

inte

ract

ion

betw

een

the

treat

men

t sta

te d

umm

y an

d th

e po

st 1

997

dum

my,

whe

re th

e tre

atm

ent s

tate

dum

my

is eq

ual t

o 1

for t

reat

men

t sta

tes a

nd th

e po

st 1

997

dum

my

is eq

ual t

o 1

for t

he y

ears

199

8-20

00, o

ther

wise

bot

h du

mm

ies

are

equa

l to

0. S

tate

s with

few

er th

an tw

o ob

serv

atio

ns p

er p

erio

d ar

e dr

oppe

d. T

reat

men

t sta

tes a

re th

ose

stat

es th

at w

ere

requ

ired

to e

limin

ate

the

and/

or sc

ore

optio

n. T

hese

inclu

de: L

A, M

S, N

E, N

M, T

X. C

ontro

l sta

tes a

re th

ose

that

alre

ady

had

high

eno

ugh

stan

dard

s by

1997

and

hav

e lar

ge

imm

igra

nt p

opul

atio

ns. T

hese

inclu

de: C

A a

nd F

L.

79

Page 119: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-36:

Diff

eren

ce-i

n-D

iffer

ence

Est

imat

esof

the

Eff

ect

ofth

eR

efor

mon

Dro

pou

tR

ates

Con

trol

ling

for

Age

Req

uir

emen

tsan

dR

estr

icti

ng

Con

trol

Gro

up

toC

alif

ornia

and

Flo

rida

(Hig

hIm

mig

rant

Sta

tes)

(Whit

es)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Scor

e op

tion

chan

ger s

tate

-0.0

216

-0.0

192

-0.0

26(0

.020

5)(0

.025

1)(0

.009

9)Sc

ore

optio

n ch

ange

r sta

te p

ost 1

997

(trea

tmen

t effe

ct)

-0.0

020.

0043

-0.0

146

(0.0

038)

(0.0

108)

(0.0

148)

Post

199

7 du

mm

y-0

.007

2-0

.008

0-0

.006

5(0

.003

7)(0

.010

8)(0

.014

2)Co

nsta

nt0.

1008

0.10

770.

0830

(0.0

193)

(0.0

238)

(0.0

073)

Obs

erva

tions

4242

42N

umbe

r of S

tate

s7

77

Not

e: H

uber

-Whi

te ro

bust

stan

dard

err

ors a

re in

par

enth

eses

(clu

ster

ed b

y st

ate)

. Mod

el is

estim

ated

usin

g O

LS. S

tate

15-

17 y

ear o

ld p

opul

atio

ns a

re

used

as w

eight

s. Th

e tre

atm

ent e

ffect

repo

rted

abov

e is

the

inte

ract

ion

betw

een

the

treat

men

t sta

te d

umm

y an

d th

e po

st 1

997

dum

my,

whe

re th

e tre

atm

ent s

tate

dum

my

is eq

ual t

o 1

for t

reat

men

t sta

tes a

nd th

e po

st 1

997

dum

my

is eq

ual t

o 1

for t

he y

ears

199

8-20

00, o

ther

wise

bot

h du

mm

ies

are

equa

l to

0. S

tate

s with

few

er th

an tw

o ob

serv

atio

ns p

er p

erio

d ar

e dr

oppe

d. T

reat

men

t sta

tes a

re th

ose

stat

es th

at w

ere

requ

ired

to e

limin

ate

the

and/

or sc

ore

optio

n. T

hese

inclu

de: L

A, M

S, N

E, N

M, T

X. C

ontro

l sta

tes a

re th

ose

that

alre

ady

had

high

eno

ugh

stan

dard

s by

1997

and

hav

e lar

ge

imm

igra

nt p

opul

atio

ns. T

hese

inclu

de: C

A a

nd F

L.

80

Page 120: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-37:

Diff

eren

ce-i

n-D

iffer

ence

Est

imat

esof

the

Eff

ect

ofth

eR

efor

mon

Dro

pou

tR

ates

Con

trol

ling

for

Age

Req

uir

emen

tsan

dR

estr

icti

ng

Con

trol

Gro

up

toC

alif

ornia

and

Flo

rida

(Hig

hIm

mig

rant

Sta

tes)

(Bla

cks)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Scor

e op

tion

chan

ger s

tate

-0.0

31-0

.041

1-0

.001

(0.0

104)

(0.0

071)

(0.0

223)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.011

90.

0003

-0.0

43(0

.015

5)(0

.026

6)(0

.026

7)Po

st 1

997

dum

my

-0.0

038

-0.0

065

0.00

35(0

.013

6)(0

.026

1)(0

.022

3)Co

nsta

nt0.

1707

0.18

120.

1398

(0.0

098)

(0.0

058)

(0.0

212)

Obs

erva

tions

4242

42N

umbe

r of S

tate

s7

77

Not

e: H

uber

-Whi

te ro

bust

stan

dard

err

ors a

re in

par

enth

eses

(clu

ster

ed b

y st

ate)

. Mod

el is

estim

ated

usin

g O

LS. S

tate

15-

17 y

ear o

ld p

opul

atio

ns a

re

used

as w

eight

s. Th

e tre

atm

ent e

ffect

repo

rted

abov

e is

the

inte

ract

ion

betw

een

the

treat

men

t sta

te d

umm

y an

d th

e po

st 1

997

dum

my,

whe

re th

e tre

atm

ent s

tate

dum

my

is eq

ual t

o 1

for t

reat

men

t sta

tes a

nd th

e po

st 1

997

dum

my

is eq

ual t

o 1

for t

he y

ears

199

8-20

00, o

ther

wise

bot

h du

mm

ies

are

equa

l to

0. S

tate

s with

few

er th

an tw

o ob

serv

atio

ns p

er p

erio

d ar

e dr

oppe

d. T

reat

men

t sta

tes a

re th

ose

stat

es th

at w

ere

requ

ired

to e

limin

ate

the

and/

or sc

ore

optio

n. T

hese

inclu

de: L

A, M

S, N

E, N

M, T

X. C

ontro

l sta

tes a

re th

ose

that

alre

ady

had

high

eno

ugh

stan

dard

s by

1997

and

hav

e lar

ge

imm

igra

nt p

opul

atio

ns. T

hese

inclu

de: C

A a

nd F

L.

81

Page 121: Taking the Easy Way Out: How the GED Testing Program ...ftp.iza.org/dp3495.pdf · This paper examines how changes in the availability and di culty of the General Education Development

Tab

leG

-38:

Diff

eren

ce-i

n-D

iffer

ence

Est

imat

esof

the

Eff

ect

ofth

eR

efor

mon

Dro

pou

tR

ates

Con

trol

ling

for

Age

Req

uir

emen

tsan

dR

estr

icti

ng

Con

trol

Gro

up

toC

alif

ornia

and

Flo

rida

(Hig

hIm

mig

rant

Sta

tes)

(His

pan

ics)

Ind

epen

den

t V

aria

ble

s10

th-1

2th

Gra

de

Dro

pou

t R

ate

10th

-11t

h G

rad

e D

rop

out

Rat

e12

th G

rad

e D

rop

out

Rat

e

Scor

e op

tion

chan

ger s

tate

-0.0

189

-0.0

171

-0.0

214

(0.0

076)

(0.0

095)

(0.0

055)

Scor

e op

tion

chan

ger s

tate

pos

t 199

7 (tr

eatm

ent e

ffect

)-0

.016

0.00

53-0

.072

5(0

.003

7)(0

.006

8)(0

.005

9)Po

st 1

997

dum

my

-0.0

161

-0.0

246

0.00

79(0

.003

6)(0

.006

3)(0

.004

3)Co

nsta

nt0.

1604

0.16

930.

1351

(0.0

024)

(0.0

014)

(0.0

050)

Obs

erva

tions

4242

42N

umbe

r of S

tate

s7

77

Not

e: H

uber

-Whi

te ro

bust

stan

dard

err

ors a

re in

par

enth

eses

(clu

ster

ed b

y st

ate)

. Mod

el is

estim

ated

usin

g O

LS. S

tate

15-

17 y

ear o

ld p

opul

atio

ns a

re

used

as w

eight

s. Th

e tre

atm

ent e

ffect

repo

rted

abov

e is

the

inte

ract

ion

betw

een

the

treat

men

t sta

te d

umm

y an

d th

e po

st 1

997

dum

my,

whe

re th

e tre

atm

ent s

tate

dum

my

is eq

ual t

o 1

for t

reat

men

t sta

tes a

nd th

e po

st 1

997

dum

my

is eq

ual t

o 1

for t

he y

ears

199

8-20

00, o

ther

wise

bot

h du

mm

ies

are

equa

l to

0. S

tate

s with

few

er th

an tw

o ob

serv

atio

ns p

er p

erio

d ar

e dr

oppe

d. T

reat

men

t sta

tes a

re th

ose

stat

es th

at w

ere

requ

ired

to e

limin

ate

the

and/

or sc

ore

optio

n. T

hese

inclu

de: L

A, M

S, N

E, N

M, T

X. C

ontro

l sta

tes a

re th

ose

that

alre

ady

had

high

eno

ugh

stan

dard

s by

1997

and

hav

e lar

ge

imm

igra

nt p

opul

atio

ns. T

hese

inclu

de: C

A a

nd F

L.

82