This authoritative two-volume collection brings together the most important published papers on the economics of schooling and school quality, issues which are at the heart of current intellectual and policy debates. Volume I presents articles on labor markets, distribution, including the structure of wages and wage inequality and the effects of schooling on economic growth. Volume II includes papers on efficiency, competition and finance and policy. The mixture of classic papers and cutting edge research provides an invaluable reference source for both students, researchers and professionals.

The volume of research into the economics of education has grown rapidly in recent years. In this comprehensive new Handbook, editors Eric Hanushek, Stephen Machin, and Ludger Woessmann assemble original contributions from leading researchers, addressing contemporary advances in the field. Each chapter illuminates major methodological and theoretical developments and directs the reader to productive new lines of research. As a result, these concise overviews of the existing literature offer an essential 'jumpstart' for both students and researchers alike.

This book reviews the uses and abuses of microsimulation models--large, complex models that produce estimates of the effects on program costs and who would gain and who would lose from proposed changes in government policies ranging from health care to welfare to taxes. Volume 1 is designed to guide future investment in modeling and analysis capability on the part of government agencies that produce policy estimates. It will inform congressional and executive decision makers about the strengths and weaknesses of models and estimates and will interest social scientists in the potential of microsimulation techniques for basic and applied research as well as policy uses. The book concludes that a "second revolution" is needed to improve the quality of microsimulation and other policy analysis models and the estimates they produce, with a special emphasis on systematic validation of models and communication of validation results to decision makers.

What is the value of an education? Volume 4 of the Handbooks in the Economics of Education combines recent data with new methodologies to examine this and related questions from diverse perspectives. School choice and school competition, educator incentives, the college premium, and other considerations help make sense of the investments and returns associated with education. Volume editors Eric A. Hanushek (Stanford), Stephen Machin (University College London) and Ludger Woessmann (Ifo Institute for Economic Research, Munich) draw clear lines between newly emerging research on the economics of education and prior work. In conjunction with Volume 3, they measure our current understanding of educational acquisition and its economic and social effects.
Winner of a 2011 PROSE Award Honorable Mention in Economics from the Association of American PublishersDemonstrates how new methodologies are yielding fresh perspectives in education economicsPresents topics and authors whose data and conclusions attest to the globalization of research Complements the policy and social outcomes themes of volume 3

Improving public schools through performance-based funding Spurred by court rulings requiring states to increase public-school funding, the United States now spends more per student on K-12 education than almost any other country. Yet American students still achieve less than their foreign counterparts, their performance has been flat for decades, millions of them are failing, and poor and minority students remain far behind their more advantaged peers. In this book, Eric Hanushek and Alfred Lindseth trace the history of reform efforts and conclude that the principal focus of both courts and legislatures on ever-increasing funding has done little to improve student achievement. Instead, Hanushek and Lindseth propose a new approach: a performance-based system that directly links funding to success in raising student achievement. This system would empower and motivate educators to make better, more cost-effective decisions about how to run their schools, ultimately leading to improved student performance. Hanushek and Lindseth have been important participants in the school funding debate for three decades. Here, they draw on their experience, as well as the best available research and data, to show why improving schools will require overhauling the way financing, incentives, and accountability work in public education.

The Handbooks in Economics series continues to provide the various branches of economics with handbooks which are definitive reference sources, suitable for use by professional researchers, advanced graduate students, or by those seeking a teaching supplement.
With contributions from leading researchers, each Handbook presents an accurate, self-contained survey of the current state of the topic under examination. These surveys summarize the most recent discussions in journals, and elucidate new developments.
Although original material is also included, the main aim of this series is the provision of comprehensive and accessible surveys
*Every volume contains contributions from leading researchers
*Each Handbook presents an accurate, self-contained survey of a particular topic
*The series provides comprehensive and accessible surveys

Spurred by court rulings requiring states to increase public-school funding, the United States now spends more per student on K-12 education than almost any other country. Yet American students still achieve less than their foreign counterparts, their performance has been flat for decades, millions of them are failing, and poor and minority students remain far behind their more advantaged peers. In this book, Eric Hanushek and Alfred Lindseth trace the history of reform efforts and conclude that the principal focus of both courts and legislatures on ever-increasing funding has done little to improve student achievement. Instead, Hanushek and Lindseth propose a new approach: a performance-based system that directly links funding to success in raising student achievement. This system would empower and motivate educators to make better, more cost-effective decisions about how to run their schools, ultimately leading to improved student performance. Hanushek and Lindseth have been important participants in the school funding debate for three decades. Here, they draw on their experience, as well as the best available research and data, to show why improving schools will require overhauling the way financing, incentives, and accountability work in public education.

How does education affect economic and social outcomes, and how can it inform public policy? Volume 3 of theHandbooks in the Economics of Education uses newly available high quality data from around the world to address these and other core questions. With the help ofnew methodological approaches, contributors cover econometric methods and international test score data. They examine the determinants of educational outcomes andissues surrounding teacher salaries and licensure. And reflecting government demandsfor more evidence-based policies, they take new looks at institutional feaures of school systems. Volumeeditors Eric A. Hanushek(Stanford), Stephen Machin (University College London) and Ludger Woessmann (Ifo Institute for Economic Research, Munich) draw clear lines between newly emergingresearch on the economics of education and prior work. In conjunction with Volume 4, theymeasureour current understanding of educationalacquisition and its economic and socialeffects.
Uses rich data to study issues of high contemporary policy relevanceDemonstrates how education serves as an importantdeterminant of economic and social outcomesBenefits fromthe globalization of research in the economics of education"

A rigorous, pathbreaking analysis demonstrating that a country's prosperity is directly related in the long run to the skills of its population. In this book Eric Hanushek and Ludger Woessmann make a simple, central claim, developed with rigorous theoretical and empirical support: knowledge is the key to a country's development. Of course, every country acknowledges the importance of developing human capital, but Hanushek and Woessmann argue that message has become distorted, with politicians and researchers concentrating not on valued skills but on proxies for them. The common focus is on school attainment, although time in school provides a very misleading picture of how skills enter into development. Hanushek and Woessmann contend that the cognitive skills of the population-which they term the "knowledge capital" of a nation-are essential to long-run prosperity. Hanushek and Woessmann subject their hypotheses about the relationship between cognitive skills (as consistently measured by international student assessments) and economic growth to a series of tests, including alternate specifications, different subsets of countries, and econometric analysis of causal interpretations. They find that their main results are remarkably robust, and equally applicable to developing and developed countries. They demonstrate, for example, that the "Latin American growth puzzle" and the "East Asian miracle" can be explained by these regions' knowledge capital. Turning to the policy implications of their argument, they call for an education system that develops effective accountability, promotes choice and competition, and provides direct rewards for good performance.

The relative deficiencies of U.S. public schools are a serious concern to parents and policymakers. But they should be of concern to all Americans, as a globalizing world introduces new competition for talent, markets, capital, and opportunity. In Endangering Prosperity, a trio of experts on international education policy compares the performance of American schools against that of other nations. The net result is a mixed but largely disappointing picture that clearly shows where improvement is most needed. The authors' objective is not to explain the deep causes of past failures but to document how dramatically the U.S. school system has failed its students and its citizens. It is a wake-up call for structural reform. To move forward to a different and better future requires that we understand just how serious a situation America faces today. For example, the authors consider the Programme for International Student Assessment (PISA), an international mathematics examination. America is stuck in the middle of average scores, barely beating out European countries whose national economies are in the red zone. U.S. performance as measured against stronger economies is even weaker - in total, 32 nations outperformed the United States. The authors also delve into comparative reading scores. A mere 31 percent of U.S. students in the class of 2011 could perform at the "proficient" level as measured by the National Assessment of Educational Progress (NAEP) program, compared with South Korea's result of 47 percent. And while some observers may downplay the significance of cross-globe comparisons, they should note that Canadian students are dramatically outpacing their U.S. counterparts as well. Clearly something is wrong with this picture, and this book clearly explicates the costs of inaction. The time for incremental tweaking the system is long past - wider, deeper, and more courageous steps are needed, as this book amply demonstrates with accessible prose, supported with hard data that simply cannot be ignored.

Educational reform is a big business in the United States. Parents, educators, and policymakers generally agree that something must be done to improve schools, but the consensus ends there. The myriad of reform documents and policy discussions that have appeared over the past decade have not helped to pinpoint exactly what should be done. The case for investment in education is an economic one: schooling improves the productivity and earnings of individuals and promotes stronger economic growth and better functioning of society. Recent trends in schooling have, however, lessened the value of society's investments as costs have risen dramatically while student performance has stayed flat or even fallen. The task is to improve performance while controlling costs. This book is the culmination of extensive discussions among a panel of economists led by Eric Hanushek. They conclude that economic considerations have been entirely absent from the development of educational policies and that economic reality is sorely needed in discussions of new policies. The book outlines an improvement plan that emphasizes changing incentives in schools and gathering information about effective approaches. Available research and analysis demonstrates that current central decisionmaking has worked poorly. Concentrating on inputs such as pupil-teacher ratios or teacher graduate degrees appears quite inferior to systems that directly reward performance. Nonetheless, since experience with such alternatives is very limited, a program of extensive evaluation appears to be in order. Attempts to institute radical change on the basis of currently available information involve substantial risks of failure. Many peopletoday find proposals such as charter schools, expanded use of merit pay, or educational vouchers to be appealing. Yet there is little evidence of their effectiveness, and widespread adoption of these proposals is sure to run into substantial problems of implementation. Instead of choosing the " right" approach, this book advocates a more systematic approach of experimentation, evaluation, and change. In addition to Hanushek, the contributors are Charles S. Benson, University of California, Berkeley; Richard B. Freeman, Harvard University; Dean T. Jamison, UCLA: Henry M. Levin, Stanford University; Rebecca A. Maynard, University of Pennsylvania; Richard J. Murnane, Harvard University; Steven G. Rivkin, Amherst College; Richard H. Sabot, Williams College; Lewis C. Solmon, Milken Institute for Job and Capital Formation; Anita A. Summers, University of Pennsylvania; Finis Welch, Texas A&M University; and Barbara L. Wolfe, University of Wisconsin.

The aspects of this text which we believe are novel, at least in degree, include: an effort to motivate different sections with practical examples and an empirical orientation; an effort to intersperse several easily motivated examples throughout the book and to maintain some continuity in these examples; and the extensive use of Monte Carlo simulations to demonstrate particular aspects of the problems and estimators being considered. In terms of material being presented, the unique aspects include the first chapter which attempts to address the use of empirical methods in the social sciences, the seventh chapter which considers models with discrete dependent variables and unobserved variables. Clearly these last two topics in particular are quite advanced--more advanced than material that is currently available on the subject. These last two topics are also currently experiencing rapid development and are not adequately described in most other texts.

The expert contributors to this volume assess recent court actions in school adequacy lawsuits and their impact on student outcomes. They show that simply throwing more resources at the problem has not brought about a solution and call for changes centered around accountability, incentives, and more informed parents and policymakers.