GED vs. High School Diploma: A Salary Comparison

The debate about whether to pursue a General Educational Development (GED) credential or a high school diploma often boils down to weighing the costs, time commitment, and potential future opportunities. A key factor in this decision is the anticipated impact on earning potential. This article explores the salary differences between individuals with a GED and those with a high school diploma, considering various factors such as age, work experience, and location.

Earning Potential: High School Diploma vs. GED

On average, individuals with a high school diploma earn more than those without one. For example, in the third quarter of 2023, full-time workers without a high school diploma had median weekly earnings of $721, compared with $905 for high school graduates with no college. This translates to a significant difference in annual income. Career Institute estimates the average salary of a high school graduate in the United States to be around $42,590 per year, or $20 an hour. In contrast, the average salary with no degree is $29,800.

However, it's crucial to consider that a GED is a high school equivalency credential. Many employers view these achievements equally when it comes to a GED vs. a high school diploma, and getting a GED can lead to a higher salary.

The Impact of Higher Education

The data consistently show that higher educational attainment leads to higher median earnings. For 25- to 34-year-olds who worked full time, year round, those who had higher educational attainment also had higher median earnings in 2022. In 2022, the median earnings of those with a master’s or higher degree ($80,200) were 20 percent higher than the earnings of those with a bachelor’s degree ($66,600) as their highest level of attainment. The largest percentage jump as you move up the educational ladder occurs from associate’s degrees to bachelor’s degrees, with bachelor’s degree holders earning 33% more over the course of their lifetime than associate’s degree holders.

Associate's Degree: The average college graduate salary with an Associate’s degree is $44,100 for 25-34 year olds.
Bachelor's Degree: The average salary of a Bachelor’s degree is higher at $59,600. Recent college graduates reached $60,000 a year for bachelor’s degree holders aged 22-27 in 2023.
Master's Degree: The average salary of a Master’s degree is higher at $69,700.

Full-Time Employment and Educational Attainment

A higher percentage of individuals with bachelor's degrees work full time, year round, compared to those with only a high school diploma. In 2022, some 76 percent of 25- to 34-year-olds in the labor force worked full time, year round. 80 percent of labor force participants in this age group who had a bachelor’s degree as their highest level of educational attainment worked full time, year round in 2022, compared with 73 percent of those who completed high school as their highest level of educational attainment. This suggests that higher education can lead to more stable and consistent employment opportunities.

Read also: Job Skills for Students

Trends Over Time

Median earnings increased between 2012 and 2022 at some but not all educational attainment levels for 25- to 34-year-olds who worked full time, year round. However, the median earnings were not measurably different in 2022 than in 2012 for those with some college but no degree, those with an associate’s degree, or those with a master’s or higher degree. Because the earnings of 25- to 34-year-olds increased at some but not all educational attainment levels, the gaps in median earnings between some attainment levels changed. For example, the gap in median earnings (in constant 2022 dollars) between high school completers and those who did not complete high school was narrower in 2022 ($6,300) than in 2012 ($9,900), with high school completers earning more in both years. In contrast, the gap in median earnings between those with a bachelor’s degree and those with an associate’s degree was wider in 2022 ($17,100) than in 2012 ($13,400), with bachelor’s degree completers earning more in both years.

Prior to the coronavirus pandemic, the percentage of 25- to 34-year-olds in the labor force who worked full time, year round had been increasing at all levels of educational attainment. These trends were disrupted during the pandemic. From 2019 to 2020, full-time, year round employment rates fell for 25- to 34-year-olds at all educational attainment levels except those with a master’s or higher degree (for whom the rate was not measurably different). By 2022, full-time, year round employment rates had rebounded, and there was no measurable difference at any attainment level compared with 2019. Full-time, year round employment was also higher in 2022 than in 2020 for those with a master’s or higher degree (80 vs.

Gender and Racial Disparities

The pattern of those with higher educational attainment having higher median earnings held, in general, for both male and female 25- to 34-year-olds who worked full time, year round in 2022. However, the median earnings of males were higher than the median earnings of their female peers at all levels of educational attainment. For example, the median earnings of males with a bachelor’s degree ($75,100) were 23 percent higher than those of their female peers ($60,800). The median earnings of males who completed high school ($46,400) were 26 percent higher than those of their female peers ($36,700). In general, the median earnings of Asian and White 25- to 34-year-olds who worked full time, year round exceeded the corresponding median earnings of their Black and Hispanic peers at most educational attainment levels in 2022.

Location, Location, Location

When determining the average salary of a diploma, location plays a major role. Regardless of your state, on average, those with a high school diploma earn more than those without. Texas ranks 13th overall in terms of bachelor’s degree median earnings at $2.87M, which is $700K above the overall median of $2.8M. While California was outside the overall top 20 in terms of lifetime median earnings for Bachelor’s degrees, the state has the highest percentage difference between earnings with just a high school diploma and a bachelor’s degree.

Beyond Salary: The Broader Benefits of Education

A college education is about more than just securing a job and a steady income. Bachelor’s degree holders are 47 percent more likely to have health insurance provided through their job and their employers contribute 74 percent more to their health coverage. Life expectancy is also longer for those who attend college. Recent college graduates also weathered the Great Recession far better than their peers with a high school diploma. Today, the jobless rate for bachelor’s degree holders is less than 3 percent. And the incidence of poverty among bachelor’s degree holders is 3.5 times lower than it is for those who hold high school degrees.

GED Considerations

GED stands for General Educational Development, and many students attempt this route - thinking it will be easier than graduating with a traditional diploma. What many students don’t realize, however, is that the GED is not just one test - it’s actually four. Students must pass (and pay for!) all four tests in order to receive their GED. The Social Value of a Diploma Some jobs tend to discriminate against GED holders. The military limits the number of accepted applicants and requires higher scores on the aptitude test for GED holders, because the dropout rate is almost double for GED holders compared to high school graduates. Even if you don’t plan to go into the military, finding a job is more difficult with a GED because of the stigma it holds with employers thinking recipients of a GED are “deficient in noncognitive skills, such as persistence, motivation, and reliability.”

The GED is a 7-hour test. For most people, preparing for it takes less than a year. Coupling your GED with a decent ACT or SAT score will improve your chances of getting accepted into a top school.

Alternative Paths to Success

Having a degree is not a necessity to make a living. Bureau of Labor Statistics to find 80 jobs that pay over $50,000 without a degree.

Read also: Eligibility for National Awards

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