Wealth Inequality, Educational Environment and School Enrolment: Evidence from Mexico

Using data from the extended section of the 2010 Mexican census (2.9 million households), we study how school enrolment is associated with wealth inequality and with the educational environment the child is exposed to at the household and municipal levels. We provide robust evidence of wealth inequality as a negative predictor of school enrolment for children in primary, secondary and high school age ranges while a positive role is played by the educational environment. Through the introduction of interaction terms, we account for how economic and educational variables are intertwined at both the household and the municipal level, and we are able to illustrate the considerable heterogeneity in the role of adult education for households at different standards of living.