In this chapter, we consider a situation in which household education expenditure, which determines the level of children’s human capital, is realized under the choice between two educational systems: public education and private education. We construct a theoretical model in which income inequality affects household education choices and empirically analyze whether the choice between public and private education in Japan’s secondary education system is influenced by the level of household income inequality. Furthermore, based on prefectural panel data, we investigate whether public subsidies for education (designed to reduce the burden of education costs on households) provided by the national and local governments influence household education choices. The empirical analysis reveals the following two points. First, in the selection of school types at the upper secondary school level, the greater the inequality (variation) in household income, the lower the enrollment rate in public upper secondary schools has tended to be. Second, in the choice between public and private education at the upper secondary school level, the introduction of the high school tuition support fund has suppressed enrollment in public upper secondary schools, instead promoting enrollment in private upper secondary schools.