This research investigates the income inequality and education inequality that still capture the interest of economists, socialists and politicians for its clear impact on all fields in the national economy. The main findings of the research are: first there is a positive association between the level of education of the head of the family and family income. Second, income inequality leads to education inequality between income-classes, which leads to widen the income gap between future generations. The third is inequality in education attainment in Bahrain had been declined during the period 1980-2006. Finally, the result stated that the main sources of education inequality in Bahrain are disparities in education costs, availability of private schools in different governorates, and in spending on education. The paper recommends that the policy-makers in Bahrain should pay more attention to distribution of private schools among governorates and education cost among these schools to improve the education inequality and income inequality situation in Bahrain.
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