LAUSR

Cognitive and noncognitive skills are key indicators of educational success and merit. However, even when accounting for inequalities in skill formation by family socioeconomic status (SES), a wide SES-gap in college enrolment remains. According to the compensatory advantage hypothesis, SES-gaps in educational transitions are largest among cognitively weak students, but little is known on mechanisms. It has long been argued that noncognitive traits such as effort and motivation might be at least as important as cognitive skills over the status-attainment process, and these skills might interact by being complements or substitutes. Thus, I test whether advantaged students substitute low cognitive skills in test scores by high returns to conscientiousness—rated by teachers— in the transition to academic secondary schools. I draw data from the German National Educational Panel Study to study a cohort of students from Grades 1 to 5, when early tracking is enforced. I estimate linear probability models with school fixed-effects and moderation. To account for measurement error, I also use composite latent skills across elementary education. I report three main findings: (a) High-SES students at the same level of cognitive and noncognitive skills than low-SES schoolmates are more likely to attend the academic track bridged to college; (b) in line with the compensatory hypothesis, these SES-inequalities are largest among low cognitive performers; (3) cognitively weak students from high-SES families get the highest educational returns to conscientiousness in comparison to high cognitive performers or low-SES peers, validating the skill substitution hypothesis. These findings challenge the liberal conception of merit as the sum of ability plus effort in assessing equal opportunity in education.