For positive integers n, r, s with r > s, the set-coloring Ramsey number R(n; r, s) is the minimum N such that if every edge of the complete graph KN receives a set of s colors from a palette of r colors, then there is guaranteed to be a monochromatic clique on n vertices, that is, a subset of n vertices where all of the edges between them receive a common color. In particular, the case s = 1 corresponds to the classical multicolor Ramsey number. We prove general upper and lower bounds on R(n; r, s) which imply that R(n; r, s) = 2 Θ(nr) if s/r is bounded away from 0 and 1. The upper bound extends an old result of Erdős and Szemerédi, who treated the case s = r − 1, while the lower bound exploits a connection to error-correcting codes. We also study the analogous problem for hypergraphs.