SOURCES OF INEQUALITY IN EDUCATIONAL ACHIEVEMENT Family background plays a key role in driving inequalities in children’s test scores. But cross-country comparisons of school performance show that various features of educational systems are also important. According to research by Hugo Reis and Pedro Carneiro, these include early tracking systems (where pupils are separated by ability early in their school careers), schools being selective in admitting their students and residence not being the main criterion for admission to a school. This study, presented to the Royal Economic Society's 2009 annual conference at the University of Surrey, studies inequality in the school performance of adolescents in a sample of OECD countries. Focused on the maths proficiency of students, the results show heterogeneity among countries and are suggestive of somewhat different degrees of segregated systems. The results also document how different education systems lead to different degrees of segregation. In particular, the results suggest that countries where school contributes to increase initial inequality are associated with: early tracking system; schools being selective in admitting their students; and residence not being the main admission criteria. No consistent evidence is available to what extent different countries achieve different degrees of segregation or equality of educational opportunities. Such evidence and comparison may lead to a better perception of how equality of opportunity or desegregation can be achieved and why different countries achieve it to a different degree. The education system is an important basis for the future social and economic opportunities of a society. Education directly affects an individual’s employment and earnings and may contribute to income inequality. Identifying the sources of achievement inequality is particularly relevant for public policy purposes that can target students, schools or promote desegregation. The choice between policy alternatives requires some understanding on the relative role of schools and family background on educational achievement. This study examines the amount of inequality in test scores that results from (i) inequalities in family background; (ii) inequalities in school resources; and (iii) poorer families being segregated in worse schools. Then it relates the importance of each of them to the characteristics of each national school system In general, despite different magnitudes, family plays a crucial role, through the family background of each student and through the family characteristics of other students of the same school. School resources have only a minor impact on educational outcomes. The results are also suggestive of different degrees of segregated systems. Countries like Germany, the Netherlands and Belgium present the highest level of segregation, represented by a strong and positive association between observable family and school characteristics. On the other hand, the Scandinavian countries, Poland, Canada and the US present a negative association. In the former group of countries, schools seem to exacerbate initial inequality, while in the latter group, schools seem to contribute to decrease inequality. From a set of characteristics of each national educational system organisation, only admission criteria and age of tracking seem to be possible explanations of the disparities across countries, in particular the different degrees of segregation. Other characteristics like the degree of school autonomy, pre-school period and length of the compulsory school seem unrelated to previous findings. The results may lead to relevant policy implications, such as the adoption of catchment areas or late tracking system if the objective is to promote desegregation and equality in the educational achievement. The research uses a sample of the maths test of 15 year old individuals surveyed by the Programme for International Student Assessment (PISA), which includes rich information on student characteristics, family environment and school resources and characteristics. ENDS ‘Sources of inequality in educational achievement: an international comparison’ by Hugo Reis (h.reis@ucl.ac.uk) and Pedro Carneiro (p.carneiro@ucl.ac.uk)