This study examines the persistent gap in educational attainment and resources between the children of the rich and the children of the poor. Three areas are studied: (1) the causal relationships producing a relatively constant gap in resource allocations and educational attainment (years of schooling) which favors the advantaged; (2) why this pattern of distribution has been impervious to government efforts to increase equal educational opportunities and equal social benefits for the poor; and (3) the likely impact of current policy initiatives promoting educational equity. Section one of the study presents an overview of the problems under consideration. Section two outlines the values and group interests that are at stake in the contest for educational resources. Section three presents data on "who" (i.e., what social groups) wins in the contests for educational resources, where winning is indicated by higher levels of educational attainment. Section four describes systematic patterns of educational resource allocations. Section five presents the outline of a dynamic model for simulating resource allocation and the factors that contribute to the educational systems' documented distribution of resources and benefits. Section six, "Policy Testing," describes the procedures and results of preliminary testing of the model. Figures and tables present data on educational resource allocations and their effects on educational attainment. Appendices present figures obtained from the preliminary testing of the model, model equations, definitions of terms, and over 70 references. (JD)