Academic Track Choices, Educational Achievements and Social Inequality in India

Expansion of educational opportunities has the potential to overcome social and economic inequalities. Educational achievements might be used as a social policy tool to reduce socio-economic inequalities by improving labor market outcomes. However, the benefits derived depend on academic choices an individual makes and the social group he or she belongs to. Children from marginalized social groups choose different academic tracks than those from privileged ones, which accounts for further differences in labor market outcomes. The present study examines whether social background defines educational achievements in India. The findings reveal that students with marginalized background have significantly lower test scores at all three tested educational levels (high school, bachelor and MBA). Social background remains the strongest predictor for educational achievements even after controlling for academic track choices and previous performance of the students. Using the social transformation theory, the study further concludes that differences in achievement scores by socio-economic background could be reduced by aspirational marginalized students; however, those cannot be erased completely.