There was a long thread several months ago on this exact subject. The cars with factory check engine lights in 87 & 88 were the California emissions cars, probably because California required it. Ford didn't make the light operable in the 49 state cars until they put mass air across the board in 89. If a non California 87 or 88 car has a light, it has most likely been changed to mass air and had the light installed. The code reader is the easiest way to get the codes, but I'm too cheap to spend the money on something I can get for free with a test light.
Even if you have the light in your car, you still need the code reader or have to jump the wires under the hood to get the codes, the dash light just takes the place of the test light or meter in reading the codes. And it lets you know there is a code in memory. But you have to have the mass air computer to operate the light. The speed density computers are not set up for turning on the check engine light. I just try to check for codes every so often to see if there are any regestering, like maybe at each oil change or so.