We draw on recent developments in the sociology of race and ethnicity and theories of the duality of social structure to explain how the formation of ‘educational identities’ interacts with racial stratification to shape the school choices of highly educated whites in the United States. Analysis of the 1996 National Household Education Survey shows that the racial composition of schools plays an important role in the schooling choices of highly educated whites. As the per cent black in a residential area increases, whites are more likely to select alternative, higher-percentage-white schooling for their children. Importantly, this effect is amplified for highly educated whites (but not highly educated blacks). Ironically, then, despite many positive effects of formal education on racial attitudes, increased education for whites leads to greater negative sensitivity to blacks in public schools, which may in turn have the unintended effect of increasing school segregation and racial inequality.