The GED certificate and the poverty status of adult women

Abstract

Are women who hold a General Educational Development (GED) certificate less likely to ever be in poverty? Using data from the National Longitudinal Survey of Youth, this study examines the probability of entering poverty for women. Given that a woman is poor, the study also examines the probability of exiting poverty. The analysis differentiates between high school dropouts, GED certificate holders, and high school graduates, and it is restricted to the first entry into poverty and the first exit out of poverty. In general, the results show that the GED certificate may be an economically beneficial route for women to achieve short-term earnings growth and remain out of poverty, as compared to dropping out of high school. The analysis shows that women with a GED certificate have a significantly higher probability of entry into poverty than high school graduates. However, a GED certificate increases the probability that a woman will exit poverty, compared to high school dropouts. This finding differs from other studies about the economic impact of the GED certificate.