In 1995, nearly three-quarters of a million high school dropouts, age 16 and above, took the General Educational Development (GED) tests in pursuit of alternative secondary certification. The GED performs the following functions: stimulate human capital investment; measure and assess cognitive skills; certify dropouts with specified skill and knowledge levels; and build dropouts' confidence. Accordingly, GED recipients are much more likely to participate in postsecondary education and vocational training than are other dropouts. Although the grade-point averages of GED recipients and high school graduates enrolled in postsecondary education tend to converge over time, high school graduates are much more likely to complete their postsecondary education than GED recipients are. In controlled comparisons, a GED had little effect on labor force participation or unemployment but was positively associated with gains in full-time employment. Studies have shown that GED recipients earn more than other dropouts but less than high school graduates. Although GED recipients had no earnings advantage over dropouts in the short term, their relative earnings increased over time. (The bibliography contains 215 references. Appended are the following: evidence from Wisconsin regarding GED norming; seven tables; discussion of technical issues; and summary of GED follow-up surveys.) (MN)