Educational Inequality

TL;DR

This chapter examines the causes, patterns, and consequences of educational inequality across countries and generations, highlighting its link to social mobility and economic inequality, and discusses the impact of COVID-19 school closures.

Contribution

It provides new empirical evidence on educational achievement gaps, reviews theoretical models of skill acquisition, and discusses the pandemic's effects on educational inequality.

Findings

Large achievement gaps linked to socio-economic status

Educational inequality varies across countries and over time

COVID-19 school closures may have long-term impacts on inequality

Abstract

This chapter provides new evidence on educational inequality and reviews the literature on the causes and consequences of unequal education. We document large achievement gaps between children from different socio-economic backgrounds, show how patterns of educational inequality vary across countries, time, and generations, and establish a link between educational inequality and social mobility. We interpret this evidence from the perspective of economic models of skill acquisition and investment in human capital. The models account for different channels underlying unequal education and highlight how endogenous responses in parents' and children's educational investments generate a close link between economic inequality and educational inequality. Given concerns over the extended school closures during the Covid-19 pandemic, we also summarize early evidence on the impact of the pandemic on children's education and on possible long-run repercussions for educational inequality.