>In a long time，labor quantity has been an important source of China’s economic growth.With the emergence of labor shortage in some regions and sectors，the role of labor quality on the economic growth will become more and more important.However，the resource of education is limited.So it is a very crucial question that how to allocate educational resource among different educational levels more reasonably and maximize its utility.This chapter analyzes the important role of education on China’s economic growth，educational expenditure and educational level and returns to education of urban and rural areas.And it puts forward some policy suggestions on how to allocate educational resource more reasonably and effectively and keep the rapid economic growth by education deepening.