In this paper, we investigate whether educational inequalities in developing countries stem rather from differences between families or within families. Since schooling is costly for parents in a poor economy, education is likely to be unequally distributed among siblings.Drawing on discrete choice models, we present a simple method to estimate the between and within components of both the explained and unexplained variances of education. For our empirical analysis, we use the LSMS survey conducted in 2002 in Albania. We explain around 40% of the total variance and find that inequalities in education are mainly due to differences between families. Differences within family are lower and far less easily explained.