Introduction 2

1. Economic Returns to Schooling and Poverty Reduction 4

  1.1. Returns to Schooling around the World 4

  1.2. Understanding Variations in Returns to Schooling: Supply, Demand, and Quality 5

  1.3. Individual Heterogeneity 7

2. Spillovers, Externalities, and their Implications for Poverty Reduction 7

  2.1. Supply Effects 7

  2.2. Externalities 8

3. Beyond Income: Education and Multidimensional Poverty 9

  3.1. Multidimensional Poverty Indicators 9

  3.2. The Effects of Education on Non-Monetary Poverty 9

4. Educational Resources and Poverty Reduction 11

  4.1. Resources Matter 11

  4.2. Education Spending Inequalities and Poverty Reduction 12

5. Conclusion and Avenues for Future Research 14