In New Zealand, Maori students have lower educational attainment levels than their Pakeha counterparts, which is a major contributor to the earnings inequality between these two groups. This study attempts to identify determinants of the gap in educational attainment using data on reading test scores for a sample of 3031 15‐year‐old Maori and Pakeha students. Using a decomposition method that is commonly applied to income inequality analyses, the determinants of the reading literacy test score gap between Maori and Pakeha students are identified. The main contributors to this gap are family factors, student's opinions, and school factors (including decile). An understanding of the determinants of the test score gap provides insights into how effective policy makers can be at reducing this inequality.