This paper presents new results on the relationship between education expansion and income inequality. While human capital theory suggests that income inequality increases with inequality of education outcomes, the expected relationship between income inequality and the level of education is ambiguous. Consistent with these theoretical priors, when dynamic panel estimation techniques are used to address issues of persistence and endogeneity we find a large, positive, statistically significant and stable relationship between education inequality and income inequality, especially in emerging and developing economies and among older age cohorts. The relationship between income inequality and education levels is positive but small and not always statistically significant, but we find a statistically significant negative relationship with schooling levels of younger cohorts. Statistical tests indicate that our dynamic estimators are consistent and that our identifying instruments are valid. Policy simulations suggest that education expansion will continue to be inequality reducing but that this role will diminish as countries develop.

This book challenges the conventional wisdom that greater schooling and skill improvement leads to higher wages, that income inequality falls with wider access to schooling, and that the Information Technology revolution will re-ignite worker pay. Indeed, the econometric results provide no evidence that the growth of skills or educational attainment has any statistically significant relation to earnings growth or that greater equality in schooling has led to a decline in income inequality. Results also indicate that computer investment is negatively related to earnings gains and positively associated with changes in both income inequality and the dispersion of worker skills. The findings reports here have direct relevance to ongoing policy debates on educational reform in the U.S.

This open access book focuses on trends in educational inequality using twenty years of grade 8 student data collected from 13 education systems by the IEA’s Trends in Mathematics and Science Study (TIMSS) between 1995 and 2015. While the overall positive association between family socioeconomic status (SES) and student achievement is well documented in the literature, the magnitude of this relationship is contingent on social contexts and is expected to vary by education system. Research on how such associations differ across societies and how the strength of these relationships has changed over time is limited. This study, therefore, addresses an important research and policy question by examining changes in the inequality of educational outcomes due to SES over this 20-year period, and also examines the extent to which the performance of students from disadvantaged backgrounds has improved over time in each education system. Education systems generally aim to narrow the achievement gap between low- and high-SES students and to improve the performance of disadvantaged students. However, the lack of quantifiable and comprehensible measures makes it difficult to assess and monitor the effect of such efforts. In this study, a novel measure of SES that is consistent across all TIMSS cycles allows students to be categorized into different socioeconomic groups. This measure of SES may also contribute to future research using TIMSS trend data. Readers will gain new insight into how educational inequality has changed in the education systems studied and how such change may relate to the more complex picture of macroeconomic changes in those societies.

Addressing the disparity in test scores between black and white children remains one of the greatest social challenges of our time. Between the 1960s and 1980s, tremendous strides were made in closing the achievement gap, but that remarkable progress halted abruptly in the mid 1980s, and stagnated throughout the 1990s. How can we understand these shifting trends and their relation to escalating economic inequality? In Steady Gains and Stalled Progress, interdisciplinary experts present a groundbreaking analysis of the multifaceted reasons behind the test score gap—and the policies that hold the greatest promise for renewed progress in the future. Steady Gains and Stalled Progress shows that while income inequality does not directly lead to racial differences in test scores, it creates and exacerbates disparities in schools, families, and communities—which do affect test scores. Jens Ludwig and Jacob Vigdor demonstrate that the period of greatest progress in closing the gap coincided with the historic push for school desegregation in the 1960s and 1970s. Stagnation came after efforts to integrate schools slowed down. Today, the test score gap is nearly 50 percent larger in states with the highest levels of school segregation. Katherine Magnuson, Dan Rosenbaum, and Jane Waldfogel show how parents' level of education affects children's academic performance: as educational attainment for black parents increased in the 1970s and 1980s, the gap in children's test scores narrowed. Sean Corcoran and William Evans present evidence that teachers of black students have less experience and are less satisfied in their careers than teachers of white students. David Grissmer and Elizabeth Eiseman find that the effects of economic deprivation on cognitive and emotional development in early childhood lead to a racial divide in school readiness on the very first day of kindergarten. Looking ahead, Helen Ladd stresses that the task of narrowing the divide is not one that can or should be left to schools alone. Progress will resume only when policymakers address the larger social and economic forces behind the problem. Ronald Ferguson masterfully interweaves the volume's chief findings to highlight the fact that the achievement gap is the cumulative effect of many different processes operating in different contexts. The gap in black and white test scores is one of the most salient features of racial inequality today. Steady Gains and Stalled Progress provides the detailed information and powerful insight we need to understand a complicated past and design a better future.

Inequality in Education: Comparative and International Perspectives is a compilation of conceptual chapters and national case studies that includes a series of methods for measuring education inequalities. The book provides up-to-date scholarly research on global trends in the distribution of formal schooling in national populations. It also offers a strategic comparative and international education policy statement on recent shifts in education inequality, and new approaches to explore, develop and improve comparative education and policy research globally. Contributing authors examine how education as a process interacts with government finance policy to form patterns of access to education services. In addition to case perspectives from 18 countries across six geographic regions, the volume includes six conceptual chapters on topics that influence education inequality, such as gender, disability, language and economics, and a summary chapter that presents new evidence on the pernicious consequences of inequality in the distribution of education. The book offers (1) a better and more holistic understanding of ways to measure education inequalities; and (2) strategies for facing the challenge of inequality in education in the processes of policy formation, planning and implementation at the local, regional, national and global levels.