This book presents the results of a research project that examines the links between education, the economic returns to schooling, cognitive skills, occupational attainment, and labour market institutions in developing countries. It focuses on comparisons between Kenya and Tanzania. The book offers evidence that education raises earnings by raising cognitive skills; that inequality based on the family in which one is born remains, despite government policies; and that expansion of education leads to reductions in the quality of jobs of graduates; as well as dealing with a variety of other issues.