The study reviews the forces drivingMexico's inequality, in particular, the recentexpansion in earnings inequality, emphasizing the roles ofeducation on: establishing an analytical framework, thatallows interaction between education, and labor market;examining the evolution of earnings inequality, followingthe macroeconomic, and educational policies of the 80s, and90s; exploring best practices for the use, and allocation ofpublic educational resources, in light of foreseeableincreases in earnings inequality; and, identifying thoseareas of educational public policy, which impact studentgraduation. The study argues on the student'sdecision-making at the secondary, and tertiary levels,concerning the disciplines to pursue, - a choice clearlyinfluenced by several factors - such as taste, abilities,family background, etc. Though some factors may beintrinsic, others could be used as policy tools, to provideadvice on best study options, but insufficient effort on thepart of educational institutions, and weak information,restrain best option selection. Theoretical support issuggested, to develop basic education, and increase accessto the poor; upgrade the level of secondary education; and,improve financial access to higher education. The studycontains two volumes, Volume 1 - the main document,summarizes the findings of the background papers, containedin volume 2.
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