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Handbook of the Economics of Education - 1st Edition - ISBN: 9780444534446, 9780444535351

Handbook of the Economics of Education, Volume 4

1st Edition

Editors: Erik Hanushek Stephen Machin Ludger Woessmann
Hardcover ISBN: 9780444534446
eBook ISBN: 9780444535351
Imprint: North Holland
Published Date: 13th July 2011
Page Count: 708
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Table of Contents



Reflections on the Economics of Education

Introduction to Handbook

Chapter 1: Personality Psychology and Economics

1 Introduction

2 Personality and Personality Traits: Definitions and a Brief History of Personality Psychology

3 Conceptualizing Personality and Personality Traits within Economic Models

4 Measuring Personality

5 Implementing the Measurement Systems

6 Personality and Preference Parameters

7 The Predictive Power of Personality Traits

8 Stability and Change in Personality Traits and Preferences

9 Summary and Conclusions


Chapter 2: Nonproduction Benefits of Education

1 Introduction

2 Education’s Effects on Crime

3 Education’s Effects on Health and Mortality

4 Education’s Effect on Citizenship, Political Participation, and Democracy

5 Conclusions

Appendix: Estimating Mediating Effects



Chapter 3: Overeducation and Mismatch in the Labor Market

1 Introduction

2 Questions

3 Measurement Issues

4 Incidence

5 Impact on Earnings

6 Relation to Labor Market Theories

7 Conclusion


Chapter 4: Migration and Education

1 Introduction

2 Empirical Evidence

3 The Migrant

4 The Effect of Migration on the Skill Base and Educational Attainment of Nonmigrants

5 The Children of Immigrants

6 Conclusion


Chapter 5: Inequality, Human Capital Formation, and the Process of Development

1 Introduction

2 The Benchmark Model

3 A Unified Theory of Inequality and Growth

4 Nonfinancial Hurdles for Human Capital Accumulation

5 Evidence

6 Concluding Remarks


Chapter 6: The Design of Performance Pay in Education

1 Screening Teachers

2 Moral Hazard

3 Markets

4 Conclusion



Chapter 7: Educational Vouchers in International Contexts

1 The Context for Vouchers Abroad

2 Voucher Programs in Colombia, Chile, and Sweden

3 Effects of Vouchers on Voucher Users

4 Effects of Vouchers on Overall School System

5 Conclusion and Suggested Directions for Future Study


Chapter 8: Dropouts and Diplomas

1 Introduction and Motivating Data

2 Models of Years of Schooling and Application to Degree Attainment

3 Specification of College Degree Attainment

4 Evidence on Determinants of Degree Attainment

5 Unanswered Questions in the Study of Degree Attainment


Chapter 9: The Political Economy of Education Funding

1 Introduction

2 Public Education Spending with a Private Option

3 Vouchers

4 Heterogeneity

5 Education Funding in Multi-Community Models

6 Dynamics

7 Empirical Issues

8 Future Directions




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.

Key Features

  • Winner of a 2011 PROSE Award Honorable Mention in Economics from the Association of American Publishers
  • Demonstrates how new methodologies are yielding fresh perspectives in education economics
  • Presents topics and authors whose data and conclusions attest to the globalization of research
  • Complements the policy and social outcomes themes of volume 3


Graduate students and professionals working in economics and education worldwide


No. of pages:
© North Holland 2011
13th July 2011
North Holland
Hardcover ISBN:
eBook ISBN:


PROSE Award 2011, Economics, Honorable Mention , American Association of Publishers


"2011 PROSE Award Honorable Mention for Economics"

"The increased importance of knowledge, skills, and information in the modern economy means that human capital and education will be even more important in the future than it has been during the past 50 years. ... The articles in these handbook volumes convey some of the excitement that continues in research on the economics of education."--Gary S. Becker, University of Chicago

"This important volume follows soon after volume 3, so together they provide up-to-date expert evaluations of the latest research findings on the economics of education, including some significant topics that are little discussed by economists. There are chapters on how psychological behavior affects economic decisions; the relation between educational achievement on one hand and criminal activity, good health, and political participation on the other; and the relation between education and the process of economic development. Other chapters address more familiar issues, such as education and migration, the use of school vouchers, overall school financing, and performance pay for teachers. One chapter considers an intriguing issue--whether there has been, or can be, over education. Most readers will appreciate the chapter on the determinants of college achievement. Each of the nine long essays comes with an unusually extensive bibliography. Of strong value for researchers and professional educators. Summing Up: Highly recommended. Upper-division undergraduate through professional collections." - CHOICE, August 2012, Vol. 49, No. 11, page 153

Ratings and Reviews

About the Editors

Erik Hanushek

Eric Hanushek is the Paul and Jean Hanna Senior Fellow at the Hoover Institution of Stanford University. He is also chairman of the Executive Committee for the Texas Schools Project at the University of Texas at Dallas, a research associate of the National Bureau of Economic Research, and a member of the Koret Task Force on K–12 Education. He serves as a member of the Board of Directors of the National Board for Education Sciences and of the Governor's Advisory Committee on Education Excellence (California).

Affiliations and Expertise

Stanford University, Stanford, CA, USA

Stephen Machin

Steve Machin's main research areas cover empirical work in labour economics, the economics of education and industrial relations. He is currently a Professor of Economics at University College London and Director of the Centre for the Economics of Education and Research Director at the Centre for Economic Performance. He is also one of the Editors of The Economic Journal.

Affiliations and Expertise

University College London and London School of Economics, UK

Ludger Woessmann

Ludger Woessmann is Professor of Economics at the University of Munich, and holds

a joint appointment as Head of the “Human Capital and Innovation” Department at

Ifo Institute for Economic Research, Germany.

Affiliations and Expertise

Ifo Institute for Economic Research, University of Munich, Germany