How is inequality linked to education? A recap of the 2025 Stone Centre Public Lecture with Susan Dynarski

"How is inequality linked to education?"

Harvard Professor Susan Dynarski ignited 2025's Stone Centre Annual Public Lecture with the question in the title.

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During her address, Sue built up a convincing case that despite higher education's undeniable benefits, American institutions often perpetuate and even exacerbate inequality. Below, we highlight key takeaways from her presentation. We encourage you to watch the full lecture on our YouTube channel which will be published shortly.

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Higher education success is profoundly shaped by socioeconomic background

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Drawing on data from David Autor, co-director of the new Stone Centre at MIT, Sue illustrated a paradox: while higher education correlates with greater earning potential and participation has risen, success is profoundly shaped by socioeconomic background. She revealed that students from higher-income families are significantly more likely to complete their degrees, a disparity amplified by higher graduation rates at elite institutions predominantly attended by the wealthy. This creates a cycle of perpetuated inequality: lower-income students, already burdened by debt, are less likely to graduate, diminishing their earning potential and hindering wealth accumulation.

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Furthermore, Sue exposed how elite institutions contribute to policy inequality. Many high-level, policy-influencing positions in the US are disproportionately filled by graduates from these institutions, who often come from wealthy backgrounds. Sharing similar life experiences, these individuals may craft public policy without firsthand understanding of the challenges faced by those from lower socioeconomic groups. This unequal access to influential careers continues a cycle of inequality by creating policies that favour the wealthy.

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But the US education system’s failure to address inequality isn’t limited to elite institutions. For-profit institutions, overwhelming attended by lower-income students, were shown to have no impact on future earnings for graduates. Alarmingly, data from 2010 showed that students from these institutions face significantly higher student loan default rates (28-31%) compared to those at top-tier institutions (4-5%). This outcome is bad news for inequality; defaulting students will struggle to obtain credit, mortgages and rental agreements.

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Solutions and Recommendations for the US

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To address these issues, Sue argued that elite institutions, unrepresentative by nature, should not dictate postsecondary policy. Instead, she advocated for greater transparency regarding these universities' failure to admit lower-income students, suggesting "public shaming" as a tool for change. Her other recommendations included stronger regulation, better training, and improved guidance for students from disadvantaged backgrounds.

Zooming out to the bigger picture, Sue stressed that addressing these shortcomings is about more than simply getting more disadvantaged students to earn degrees. Change is essential to foster a more representative society by increasing the presence of individuals from lower socioeconomic backgrounds in influential high-end occupations, such as the judiciary.

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Q&A Discussion: The UK Context

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Following the presentation, Sue was joined by Gavin Kelly of the Nuffield Foundation for a Q&A chaired by Bethan Staton of the Financial Times.

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Building on Sue’s US-analysis, Gavin highlighted similar challenges within the UK higher education system, noting its disproportionate benefit to those from more privileged backgrounds. He pointed out that 16% of 18-24-year-olds are not in education or training, often facing inactivity rather than unemployment – a complex issue without easy answers. Gavin revealed a stark statistic: the UK is unique among OECD countries in having similarly poor literacy and numeracy levels among young people and those in their 50s and 60s, indicating persistent inequality. He also underscored the geographic dimension of educational inequality, observing that working-class students are less likely to pursue distant courses, thereby limiting their social mobility.

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Addressing Inequality in UK Education

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For the UK to address this relationship between education and inequality, Gavin argued for improved funding for apprenticeships, with a focus on younger individuals. He identified sub-degree qualifications above Level 3 (equivalent to A-levels) as a critical weakness in the UK's educational landscape. He concluded that any UK government genuinely committed to tackling inequality must prioritise access to and participation in Level 4 and higher qualifications.

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Concluding the Stone Public lecture 2025

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The Stone Centre is very grateful to Sue Dynarski, Gavin Kelly, and Bethan Staton for making our 2025 Public Lecture so timely and relevant for current debates on higher education and the role of the university. We are also grateful to UCL's Policy Lab for their partnership on this event and to those who joined us on a wonderfully sunny evening in London. We look forward to continuing this important conversation in upcoming events. Keep an eye on the Stone Centre website for future announcements and sign up to our newsletter to be the first to know.

Whilst visiting the Stone Centre at UCL, Sue also joined us at the Stone Centre Conference on Education and Inequality. You’ll find more insights on education and inequality in our write up of the two day conference.

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