The prevalence of widespread poverty and the increasing inequality in income distribution across nations point to the failure of the trickle-down theory. The long-held faith in the growth of income as the sole policy instrument to achieve the national objective of growth with equity has been put to the test. The increasing numbers of the poor, accompanied by the widening gap between the upper- and lower-income strata, have prompted researchers to explore the reasons for these shifts so that policies to address the problem can be formulated and implemented. Recent experience shows that micro-level intervention policies that empower individuals have been successful in achieving better results on this count. One such policy intervention is educational expansion, in terms of both quantity and quality. Education is considered to be a significant factor in building better human skills and hence largely affects the earning ability of an individual. This article explores the role of education as an intervening instrument for bringing about a socio-economic transformation. On the basis of primary data collected from the state of Odisha (in India), an attempt has been made to examine the possibility of achieving better income distribution and increased intergenerational movements through educational expansion and changes in educational policy.