<p>This paper examines the determinants of higher education enrolment in Ethiopia using a unique longitudinal data that follows the lives of young people over a period of 14&#xa0;years (from age 8 to age 22). The study employed a stepwise estimation strategy and assessed the role of early childhood accumulation of human capital and selection on individual-specific unobservable characteristics through lagged achievement (i.e., test scores at age 12). Results from the estimation indicate substantial inequalities in access to higher education arising from location, household wealth, prior academic performance, and gender. We also find that an academically strong but poor individual at the age of 12 is less likely to access higher education between ages 19 and 22 compared to an academically weak but rich individual at the age of 12. This finding is not likely a case of the poor being rationed out by price since academic performance in entrance exam is the primary filter mechanism that determine who gains access to higher education in Ethiopia. What seems more likely is that individuals are rationed out by not having the resources to continuously invest in tutoring and study to do well in entrance examinations. Therefore, early intervention that provide direct financial support to academically sound but poor children could significantly increase higher education enrolment in the future.</p>