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This paper explores the impact of school performance (primary effects) and the structure of costs and benefits that individuals of different social class face (secondary effects) on the transition from compulsory to non-compulsory education in Spain. We find that both predictors of educational paths seem to operate through an interactive effect, which contributes to reproducing educational inequalities. This interaction suggests that school performance is not interpreted in the same way by individuals from different social classes. In concrete, the resources and social capital of upper class families provide compensation effects leading to a greater probability of students from upper classes with poor grades reaching post-compulsory secondary education and higher education in comparison to lower class students with the equivalent grades. Therefore, inequality by social class of origin is greatest among students with the lowest grades. [ABSTRACT FROM AUTHOR]