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I worked as a research assistant for a faculty member for a year in UG. Should I list this under work experience or education on my resume? I didn't get paid for it, and received academic credit for it for one semester. The work was basically compiling data and making a few large databases that are later going to be used for econometric analysis.
Any suggestions would be appreciated.

I'd format it like a CV and put it under Research Activities. I did with mine.

Duly noted. Since I'm still in UG and am not an academic, it made more sense to me to format it like a resume. Also, since it's my only research position, I don't know if it's appropriate to have a heading with only one bullet. Any other suggestions?

I think you can really go either way. I put my paid RA under "experience," but I've also seen people list it as a bullet under their undergrad heading (I would not make it its own heading if you put it in education).