What can employers assume about the literacy skills of General Educational Development (GED) program graduates? A subsample of 1,012 young adults, aged 21 to 25, selected from the Young Adult Literacy Survey (YALS) was used to study this question. The sample consisted of all Caucasians, African-Americans, and Hispanics in the following categories: (1) high school graduates with no college education; (2) high school dropouts who did not study for or pass the GED; (3) high school dropouts who studied for the GED but did not pass it; and (4) high school dropouts who passed the GED tests. These groups, demographic variables, and measures of literacy-related activities comprised the three predictors. The dependent variables were the YALS prose, document, and quantitative literacy scales. Results of a series of block entry multiple regressions suggested that employers could assume that certain reliable differences in literacy skills remained between educational groups after taking into account differences in demographic characteristics and literacy-related activities. Although high school graduates were only slightly more proficient in literacy skills than those completing a GED, relatively large and reliable differences existed between those who obtain a GED and those who drop out of high school and do not study for or pass the GED. Dropouts who study for but do not obtain a GED were statistically equivalent in literacy skills to those who drop out and do not study for the GED. (Contains 17 references and 5 data tables.) (YLB)