Intro -- Title Page -- Copyright Page -- Brief Contents -- Contents -- About the Authors -- Preface -- Part I. Introduction and Background -- Chapter 1 Why Do Economists Study Education Policy? -- Prelude The U.S. Educational Attainment Gap -- 1.1 Defining the Economics of Education -- What Is Education? -- What Is Economics? -- 1.2 Studying the Economics of Education -- Scientific Method and the Economics of Education -- Questions for the Economics of Education -- Markets in Education -- 1.3 What Can Economics Teach Us About Education Policies? -- The Different Types of Education Policies, Policies as a Set of Incentives -- 1.4 The Road Ahead: Objectives and Organization of the Book -- 1.5 Conclusion -- Chapter 2 The Structure and History of Education Markets in the United States -- Prelude The Education of Benjamin Franklin -- 2.1 Defining Education Markets -- The Levels of Education in the United States -- Deep Dive: International Schooling Comparisons -- Providers in Education Markets -- Arguments for the Role of Government and Nonprofits in Education -- 2.2 The Roles of Government in Education -- Regulations and Mandates in Education -- Public Funding for Education, 2.3 Development of Education Institutions and Attainment in the United States -- Mid-Nineteenth Century: The Common School Movement -- 1910-1940: The High School Movement -- 1940-1975: Expansion at the Postsecondary Level -- 1975-Today: The Growth in Demand for Skills and the Shift to Market-Based Schooling Policies -- 2.4 Conclusion -- Chapter 3 Empirical Tools of Education Economics -- Prelude Why Does College Enrollment Differ by Family Income? -- 3.1 Descriptive Evidence and the Distinction Between Correlation and Causation -- Toolbox: Descriptive Statistics, Deep Dive: Why Is It Important to Distinguish Correlation from Causation? -- 3.2 Randomized Control Trials: The Experimental Ideal -- 3.3 Nonexperimental Methods -- Regression Analysis -- Toolbox: Omitted Variables Bias -- Policy Changes and the Difference-in-Difference Approach -- Instrumental Variables -- Regression Discontinuity: Examining Sharp Breaks -- 3.4 Conclusion -- Part II. The Foundations of Education Production and Investment -- Chapter 4 The Human Capital Model -- Prelude The Education Investment Decisions of Morgan and Stanley -- 4.1 What Is Human Capital?, and 4.2 The Costs and Benefits of an Education -- 4.3 Basic Setup of the Human Capital Model -- Toolbox: Present Value and Compound Interest -- 4.4 Present Value Formulation and Educational Investments -- 4.5 Predictions from the Investment Model of Education -- Changes in Direct Costs -- Changes in Indirect Costs -- Changes in Benefits -- 4.6 Continuous Schooling Choices -- Toolbox: Calculating Marginal Rates of Return: The Mincer Formulation -- 4.7 Why Does Educational Attainment Differ Among Individuals? -- People Differ in Their Ability to Finance Direct Costs
