The absolute and relative facets of the economic gradient in educational attainment: large-scale evidence from Brazil

A large body of research has shown that students from better-off households tend to have higher educational achievement. However, there is scant evidence able to disentangle the role of absolute and relative economic status in affording this advantage. We address this gap by estimating econometric models where the two measures of economic status are jointly employed as explanatory variables: household income (reflecting command over resources) and relative deprivation (reflecting economic disadvantage relative to students in the same school). Using large data from seven waves of Brazilian high-stakes secondary education exams (N ~ 8 million), we show robust evidence that both household income (0.020 SD [p < 0.000]) and relative deprivation (-0.068 SD [p < 0.000]) are significant predictors of exam scores. This suggests that the nature of the educational advantage granted by economic status is twofold. Although the variables available in the dataset do not allow us to test for specific mechanisms, the literature from an array of academic disciplines supports the interpretation of our empirical results that alongside the role played by household income through material pathways to education (e.g. affordability of a range of educational inputs such as food, transport, learning material, school fees, etc.), relative deprivation might also shape outcomes through psychosocial pathways related to self-esteem, aspirations, motivation and identity. In addition, our results suggest that the effects of relative deprivation might be more detrimental for those in households with higher incomes.