Bias Corrected Estimates of Ged Returns

46 Pages Posted: 27 Apr 2006

See all articles by James J. Heckman

James J. Heckman

University of Chicago - Department of Economics; National Bureau of Economic Research (NBER); American Bar Foundation; Institute for the Study of Labor (IZA); CESifo (Center for Economic Studies and Ifo Institute)

Paul LaFontaine

American Bar Association

Date Written: February 2006

Abstract

Using three sources of data, this paper examines the direct economic return to GED certification for both native and immigrant high school dropouts. One data source %u2013 the CPS %u2013 is plagued by non-response and allocation bias from the hot-deck procedure that biases upward the estimated return to the GED. Correcting for allocation bias and ability bias, there is no direct economic return to GED certification. An apparent return to GED certification with age found in the raw CPS data is due to dropouts becoming more skilled over time. These results apply to native born as well as immigrant populations.

Suggested Citation

Heckman, James J. and LaFontaine, Paul, Bias Corrected Estimates of Ged Returns (February 2006). NBER Working Paper Series, Vol. w12018, pp. -, 2006. Available at SSRN: https://ssrn.com/abstract=881252

James J. Heckman (Contact Author)

University of Chicago - Department of Economics ( email )

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Paul LaFontaine

American Bar Association ( email )

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Chicago, IL 60610
United States

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