The role of education quality in economic growth is central to development strategies, yet the effectiveness of expanding school attainment has not guaranteed improved economic conditions. This paper reviews the role of education in promoting economic well-being, emphasizing the importance of educational quality. It concludes that cognitive skills, rather than mere school attainment, are strongly related to individual earnings, income distribution, and economic growth. New empirical results show the importance of both minimal and high-level skills, the complementarity of skills with economic institutions, and the robustness of the relationship between skills and growth. International comparisons reveal larger skill deficits in developing countries than previously thought. Closing the economic gap with developed countries requires major structural changes in schooling institutions. The paper discusses the relationship between education and economic growth, highlighting the importance of cognitive skills and the limitations of relying solely on school attainment. It emphasizes that educational quality, particularly in developing countries, is the key issue. While years of schooling are readily measured, they are misleading in policy debates. The paper provides evidence that ignoring quality differences distorts the relationship between education and economic outcomes. It also discusses the impact of educational quality on individual earnings and economic growth, showing that higher quality education leads to better outcomes. The paper concludes that educational quality is crucial for economic growth and that policies aimed at improving school quality can have direct impacts on income distribution. The study also highlights the importance of institutional factors and the need for policies that improve school quality and educational outcomes.The role of education quality in economic growth is central to development strategies, yet the effectiveness of expanding school attainment has not guaranteed improved economic conditions. This paper reviews the role of education in promoting economic well-being, emphasizing the importance of educational quality. It concludes that cognitive skills, rather than mere school attainment, are strongly related to individual earnings, income distribution, and economic growth. New empirical results show the importance of both minimal and high-level skills, the complementarity of skills with economic institutions, and the robustness of the relationship between skills and growth. International comparisons reveal larger skill deficits in developing countries than previously thought. Closing the economic gap with developed countries requires major structural changes in schooling institutions. The paper discusses the relationship between education and economic growth, highlighting the importance of cognitive skills and the limitations of relying solely on school attainment. It emphasizes that educational quality, particularly in developing countries, is the key issue. While years of schooling are readily measured, they are misleading in policy debates. The paper provides evidence that ignoring quality differences distorts the relationship between education and economic outcomes. It also discusses the impact of educational quality on individual earnings and economic growth, showing that higher quality education leads to better outcomes. The paper concludes that educational quality is crucial for economic growth and that policies aimed at improving school quality can have direct impacts on income distribution. The study also highlights the importance of institutional factors and the need for policies that improve school quality and educational outcomes.