Socioeconomic Inequalities in Education Beyond the Early Years1

Abstract

Human capital is viewed as a central driver of persistence in incomes across generations. Socioeconomic differences (inequalities) in human capital translate into income inequalities not only because there are positive economic returns to skills and educational attainment but also because there is some evidence that returns to human capital are larger for individuals from higher socioeconomic backgrounds. Dynamic models of human capital formation emphasize the importance of early investments. Yet, the effects of some early years interventions fade out by the time children enter school, and there is evidence that socioeconomic gradients in educational achievement become steeper as children get older. This chapter, therefore, focuses on the drivers of educational inequalities in high school and higher education. As education is compulsory in most developed countries up to the end of high school, we focus on inequalities driven by two important dimensions of the investments families make in the education of their children: the types of schools accessed and the other (financial and time) investments they make outside of school. Given the important role that higher education has been found to play in driving wage and earnings inequalities, as well as intergenerational mobility, we additionally summarize the evidence on interventions designed to reduce inequalities not only in whether you go to university, where you go, and what you study but also in what happens when you arrive – whether you drop out or complete your degree, as well as your degree attainment.