%0 Report %A Heckman, James J. %A Humphries, John Eric %A LaFontaine, Paul A. %A Rodríguez, Pedro L. %T Taking the Easy Way Out: How the GED Testing Program Induces Students to Drop Out %D 2008 %8 2008 May %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 3495 %U https://www.iza.org/publications/dp3495 %X 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. %K dropout %K GED