Economics of Education: An Introductory Textbook

“This important volume presents the main economic models and latest evidence on some of the key questions in the economics of education, from long-time questions like the effect of smaller class sizes on learning outcomes to frontier questions such the value of social-emotional skills. It also includes a valuable overview of the Spanish education system and an introduction to econometric methods for impact evaluation. I recommend it to both professors and students at the intersection of economics of education and international education seeking to understand the rationale for leading education policies and the extent to which they have had the intended effect. It will become a key resource in my classes.” (Alejandro Ganimian, Harvard University, USA)

“This volume brings together top scholars to take on some of the most pressing challenges in the economics of education. The chapters draw on solid empirical work and lay out policy-relevant insights across key topics such as school choice, teacher effectiveness, and educational equity. I was particularly drawn to the chapter that digs into gender gaps in educational outcomes. The book does a great job of unpacking the drivers behind persistent inequalities and what can be done to address them. This book is a must-read for researchers, policymakers, and anyone looking to back up education reform with strong evidence.” (Almudena Sevilla, London School of Economics, UK)

“This book provides an excellent overview of topics in the economics of education. Its chapters go beyond introducing topics—they provide rigorous analytical frameworks for understanding the research on them. I highly recommend it to all interested in how economics and empirical work illuminate educational systems and policy.” (Miguel Urquiola, Columbia University, USA)

“This edited volume covers an expansive range of essential topics in the economics of education literature. Researchers and policymakers alike stand to benefit from these deeply researched chapters filled with cutting edge research. I recommend this book to anyone interested in better understanding the Spanish education system or the application of applied microeconomics to the issues of education policy and practice.” (Matthew Kraft, Brown University, USA)

This textbook provides students with a comprehensive overview of the economics of education, introducing and consolidating core topics, current research and practical methodologies in the field.

The textbook focuses throughout on the impact of education economics on policy making, helping students understand the real-world impact of economic theory on public policy. With a wealth of learning features including case studies, worked examples, exercises and further reading lists, it provides a thorough picture of the economics of education systems globally. Chapters cover a range of topics, from class size to the impact of family and peers on education, as well as exploring unique educational stages such as pre-school and vocational training, access to university, and cross-cutting issues such as educational inequalities and the role of gender in education. Going beyond simply an economics approach by also introducing perspectives from psychology and sociology, the textbook offers students a holistic grasp of the themes and issues that resonate with educational communities. At the same time, it equips students to carry out accurate methodological research, encompassing randomized controlled trials, empirical studies and accessible databases. This book will be essential reading for students in economics and the social sciences more broadly, as well as policy-makers and educators.

Antonio Cabrales is Full Professor of Economics at Universidad Carlos III, Madrid, Spain. He has previously been a professor at University College London and at Universitat Pompeu Fabra. He is Executive Vice President of the European Economic Association, Fellow of the Econometric Society, and former President of the Spanish Economic Association. He has worked in a wide range of topics including game theory, the economics of networks, mechanism design, economics of education, experimental and behavioural economics.

Ismael Sanz is an Associate Professor in the Department of Applied Economics at King Juan Carlos University, Madrid, Spain, and a Visiting Senior Fellow at the LSE. He has served as Chair of the Strategic Development Group of PISA at the OECD. His research has been widely published in economics journals, including Economic Journal, Oxford Bulletin of Economics and Statistics, Scandinavian Journal of Economics, and Canadian Journal of Economics.