We examined family and neighborhood sources of socioeconomic inequality in children’s reading and mathematics achievement using data from the 2000–2001 Los Angeles Family and Neighborhood Survey. To describe inequality in achievement scores, we used Gini coefficients and concentration indices and multilevel regression models. We found no inequality in children’s achievement by family income when other variables in the model were held constant. Mother’s reading scores and average neighborhood levels of income accounted for the largest proportion of inequality in children’s achievement. Neighborhood economic status appears to be strongly associated with children’s skills acquisition.