Inequality Begins Outside the Home: Putting Parental Educational Investments into Context

The highly concerning phenomenon of a widening income education gap in the USA is addressed by Kalil (Chap. 5). We offer a contextual developmental perspective on the effects of poverty on families, parents, and children. There is little doubt that parenting matters for children's health and development. However, we argue that analysis of how parenting matters to children's educational outcomes, and why parenting differs between economic and educational strata, is best conducted once parenting is put into context. In support of this argument, we briefly address three topics. First, we present strong evidence that parenting is a mediating factor in explaining children's diverging academic destinies. Second, we compare a behavioral economics perspective on parental educational investments in more and less advantaged households to developmentally informed theory and research on the topic. Finally, we consider the utility of a behavioral economics solution to the problem of educational disparities in this country.