We explore effects of individual, family, and neighborhood effects on educational progress. The statistical model used is a multilevel sequential probit model. Such formulation allows the covariate-effects to vary across different educational levels. Results based on about 2,100 children whose parents are either native Swedes or migrants from Poland or Turkey provide new insights with regard to differentials in educational progress across background varaiables. Among others, we find that parental education is a strong predictor of educational progress at all levels. On the other hand, while family structure, family economy, and ethinic background are strongly correlated to educational progress at lower levels, their effect diminishes at higher levels of education. Possible exaplanations and implications of the results are presented.