SIGNALING VALUE OF A HIGH SCHOOL DIPLOMA 301 TABLE 4 IMPACT OF RECEIVING A HIGH SCHOOL DIPLOMA 0N EARNINGS (1) (2) Years 13 109.5 119.8 (352.0) (283.2) 1.6% 1.7% Years 46 333.1 155.0 (517.9) (421.7) 3.0% 1.4% Years 711 99.3 52.2 (767.0) (634.0) 7% .4% All years pooled 177.7 106.4 (475.9) (392.9) 1.7% 1.0% PDV earnings through year 11 1,632.1 598.8 (3,299.5) (2,742.3) 2.1% 8% Polynomial specication Unrestricted Restricted NOTEEstimates use the same samples and specication as cols. 5 and 6 of table 3. Unrestricted specication estimates are from twostage leastsquares models in which the test score polynomial is fully interacted with an indicator for passing the lastchance exam. Results from the \"restricted\" polynomial specication are the ratio of the reduced-form and rststage estimates, where these are estimated separately and the standard errors are calculated using the delta method. The reduced form is the estimated discontinuity in earnings using the polynomial specication in which the slopes are constrained to be equal on either side of the passing cutoff (col. 6 in table 3) and the rst stage is estimated using a polynomial that is fully interacted with the passing dummy. All standard errrors are ad justed for clustering at the individual level. For each set of estimates, the third row rep resents the point estimate expressed as a percentage of mean earnings just to the left of the passing cutoff