Tyler (2005) suggests two possible explanations for this finding. First, because low-skilled dropouts tend to have limited work experience, having a credential is particularly important. Given two individuals with weak job applications, employers may choose the individual with a GED because they assume this individual will be more productive. Because higher skilled dropouts tend to have better work histories, a credential may not be as important. A second explanation comes from human capital theory. Higher skilled dropouts may receive little benefit from obtaining the GED because these individuals can pass the GED with little extra preparation. As a result, GED process adds little to their stock of human capital. However, lower skilled individuals may require substantial preparation to pass the GED exams. For these individuals, obtaining the GED may produce substantial human capital benefits.
More optimistically, US research consistently shows that GED holders have as high a return on post-secondary education as regular high-school graduates. Using a nationally representative sample of working age individuals, Bauman and Ryan (2001) find that 30 percent of the GED holders have some post-secondary education and 8 percent have a bachelor’s degree or higher.
Most provinces offer some form of academic upgrading for individuals without a high-school diploma who want to pursue post-secondary studies. These programs are usually delivered by colleges (only a few universities have upgrading programs and these programs are usually quite small). Program design varies across the provinces, but in general the course content is similar to core high-school credit courses such as English and math, but is focused specifically on preparing students for post-secondary programs. In addition, some colleges offer upgrading courses that are specially designed to prepare students for specific post-secondary programs (e.g., biology for nursing).
Alberta: Most colleges offer some type of academic upgrading program. Students may apply for funding by completing a learning plan and identifying learning objectives. Students whose objectives meet provincial approval are eligible for government funding.
British Columbia: Adult Basic Education courses are offered at nineteen post-secondary institutions, under a variety of names (e.g., ABE, college foundation, college preparation, access, and upgrading). Tuition is usually free, although some colleges charge a small registration fee. Students may apply for additional financial support.
Nova Scotia: Most colleges offer academic upgrading programs. In addition, the High-school Graduation Diploma for Adults is well integrated with the post-secondary system and is designed specifically to help students make the transition to post-secondary education. One of the most impressive features of Nova Scotia’s system is that dual crediting is possible between the Nova Scotia School of Adult Learning (NSSAL) and some community college programs. What this means is that learners who are enrolled at community colleges may be able to work towards two programs at the same time (e.g., they could be enrolled in a business administration program at the same time as they are working towards their adult high-school diploma).