How does education affect economic and social outcomes, and how can it inform public policy? Volume 3 of the Handbooks in the Economics of Education uses newly available high quality data from around the world to address these and other core questions. With the help of new methodological approaches, contributors cover econometric methods and international test score data. They examine the determinants of educational outcomes and issues surrounding teacher salaries and licensure. And reflecting government demands for more evidence-based policies, they take new looks at institutional features of school systems. Volume editors Eric A. Hanushek (Stanford), Stephen Machin (University College London) and Ludger Woessmann (Ifo Institute for Economic Research, Munich) draw clear lines between newly emerging research on the economics of education and prior work. In conjunction with Volume 4, they measure individuals' current understanding of educational acquisition and its economic and social effects. This volume contains: (1) Econometric Methods for Research in Education (Costas Meghir and Steven Rivkin); (2) The Economics of International Differences in Educational Achievement (Eric A. Hanushek and Ludger Woessmann); (3) Education and Family Background: Mechanisms and Policies (Anders Bjorklund and Kjell Salvanes); (4) Peer Effects In Education: How Might They Work, How Big Are They and How Much Do We Know Thus Far? (Bruce Sacerdote); (5) Teacher Compensation and Collective Bargaining (Michael Podgursky); (6) Licensure: Exploring the Value of this Gateway to the Teacher Workforce (Dan Goldhaber); (7) The Economics of Tracking in Education (Julian R. Betts); (8) School Accountability (David Figlio and Susanna Loeb); (9) The GED (James Heckman, John Eric Humphries, and Nicholas Mader); (10) Housing Valuations of School Performance (Sandra Black and Steven Machin); and (11) Apprenticeship (Stefan C. Wolter and Paul Ryan). [For related reports, see Volume 1 (ED527053), Volume 2 (ED527054), and Volume 4 (ED527056).