This textbook includes a full treatment of recent developments in the economics of education. Aspects of labour economics and industrial economics are blended together in the study of the education sector. The book also provides an applied perspective from which to study advanced topics in economic theory, including overlapping generations models, auctions theory, rank order tournaments and principal agent problems. It is suitable for 2nd and 3rd year undergraduates, and takes an international approach. Geraint Johnes is the author of "Economics for Managers" and "Unemployment Dynamics in Regional Labour Markets", and editor of the journal "Education Economics".