Wealth gaps in post-secondary enrolment in Europe? A comparison across European countries and wealth components

Abstract

Previous studies have established parental wealth as an important dimension for social stratification in education. However, this research is restricted to a small number of countries, effect sizes are hardly comparable across different analyses, and the role of different wealth components remained unclear. The present study compares wealth gaps in education – measured as enrolment in post-secondary education – and the contribution of different wealth components across 14 European countries using the harmonized data of the Household Finance and Consumption Survey. In all analysed countries, substantial wealth gaps in education are found. In all but two countries, these gaps remain net of other dimensions of parental SES. As regards net wealth, large wealth gaps in education in Southern European countries and smaller gaps in Eastern European and most Continental countries are documented. In most countries, real wealth is the driving force behind wealth gaps in post-secondary enrolment. In contrast, there is a positive association between debt and post-secondary enrolment in some countries but a negative association in other countries. Overall, the empirical results highlight the importance of homeownership for education and the dual nature of debt.