This chapter analyzes the design of incentive schemes in education while reviewing empirical studies that evaluate performance pay programs for educators. Several themes emerge. First, education officials should not use one assessment system to create both educator performance metrics and...

This chapter surveys the economics literature on overeducation. The original motivation to study this topic reports that the strong increase in the number of college graduates in the early 1970s in the United States led to a decrease in the returns to college education. We argue that Duncan and...