This report of a study on the influence of education on student achievement finds that while schooling does have some tangible effects, they are not enough to significantly counterbalance the effects of students' social backgrounds. The report is part of an extensive series of studies on compensatory education and its long-term effects. The study sample consisted of 15,579 first through sixth graders attending 242 public schools in the fall of 1976. Of these schools, 95 were studied over the next two years and their students were followed for up to three years. Data on students' home environments and outside activities were collected as well as information on the characteristics of each school. Basic academic skills were assessed by a set of standardized achievement tests. The data gathered were used in a series of structural-equation models of the schooling-achievement process. It was found that the effects of schooling are too modest to overcome the academic advantages of socioeconomically privileged students, and even in the early years when schooling is most effective, the linkage of school resources to background works to sustain if not increase the background-achievement relationship. It is suggested, however, that while compensatory education may not be able to alter this relationship substantially, it may make a difference to disadvantaged students by reducing the link between ability and resources and may increase their chances of completing school or enough school to participate successfully in society. Numerous data tables are used in the report. Supplementary tables, as well as detailed analyses of the study sample and of cohort patterns, are contained in the appendices. (CG)