We use data for a large sample of Ontario students who are observed over five years from their initial entry into high school to study differences in postsecondary education participation. The students are grouped by average neighbourhood income and birthplace (Canadian or foreign‐born). We find substantial differences in the allocation of students based on their performance in Grade courses and the types of PSE participation within achievement groupings. We document differences in PSE participation based on the students’ birthplace. Foreign‐born students, conditioning on performance in high school, are more likely to continue onto university and college. Foreign born students in higher income neighbourhoods are more likely to pursue a university degree than a college credential. Uniformly, Canadian‐born students are less likely to pursue a PSE credential upon the completion of high school.