Education is one of the top priority policy areas of governments around the world. It is often viewed as an essential element in global economic competition. It is further taken as a force for improving the economic standing of disadvantaged populations within borders and, in the case of foreign aid, across borders. At the same time, some question whether this common model is true as many economic outcomes appear impervious to increased schooling. This chapter reviews the evidence on the economic impact of education with a special emphasis on cognitive skills.