Education is a considerable public and private investment in the United States. At the individual and social levels, education produces different types of knowledge and skills through formal schooling. The field of economics of education largely concerns the allocation and organization of resources among various stakeholders in the educational system, such as federal and state governments, schools, parents, and students. It addresses the returns to investments in education, financing education, and improving the quality of education. Economics of education also includes the application of economic concepts and econometrics in educational research. Indeed, economics of education has become primarily an applied field.

This entry focuses on the theoretical concepts and empirical applications of the economics of education. It first describes the origin and evolution of economics of ...