In Ireland, key ways of measuring disadvantage in education are by the number of children and young people who either leave school early or who leave school without achieving what is considered an essential qualification for a life of social and economic well-being. In addition, several studies have demonstrated the misrepresentation of certain socio-economic groups at the third level cycle. Internationally, there is a substantial body of evidence confirming the link between the quality of educational opportunity and employment opportunity within post-fordist societies. Studies of cities such as Glasgow and Birmingham have emphasised the spatial distribution of educational disadvantage while others point to the implications of urban regeneration for the types of skills demanded of local communities. Some of the most socially disadvantaged communities in Ireland are to be found in Dublin's inner city. The area has undergone significant changes in the past decade, including a rise in employment, the prioritisation of the area for renewal, the introduction of several statutory programmes aimed at alleviating disadvantage and substantial private and public investments. Despite increases in employment and educational facilities, the inner city remains the most concentrated area of disadvantage in the State, with long-term unemployment at almost four times the national average in some of the flat complexes. The unemployment rate was 27.1% in the inner city in 1996, almost twice the national average of 14.8%. 43.8% of the adult population in the area left school at or before the age of 15, more than twice the national rate of 34.5%. 36.6% of the population have no formal or have only a primary education. Less than 10% of pupils stay in the formal education system to complete the leaving certificate. In the Dublin 1 postal area, 8.9% of pupils attend third level colleges. This figure contrasts with 68.4% in the Dublin 14 area. Almost 10,000 people depend on social welfare payments for their income. Efforts are being made in recent years to address the institutional neglect, which has left communities in poor housing, with poor employment opportunities and inadequate training and education investment. One of the main government approaches to address these interlinked problems has been to develop area-based strategies and, more recently, to develop integrated approaches to tackling these issues. This paper seeks to locate educational disadvantage data collected from Dublin's inner city within the theoretical conclusions drawn from the international literature on the relationship between educational opportunities, life chances, skills and urban renewal. The paper will ask how salient these relationship are in the context of Dublin's inner city where there has been a move away from traditional heavy labour in the docklands and related industries towards the primarily knowledge based demands of the financial services centre. Conclusions will be drawn about the potential for success of government initiatives aimed at promoting education and employment in the area.