In this article, we examine the nature of the relationship between educational attainment and ideology. Some scholars have argued that the effect of education on political variables like ideology is inflated due to unaccounted-for family factors, such as genetic predispositions and parental socialization. Using the discordant twin design and data from a large sample of Danish twins, we find that after accounting for confounders rooted in the family, education has a (quasi)-causal effect on economic ideology, but not social ideology. We also examine whether the relationship between education and economic ideology is moderated by levels of economic hardship in the local context where individuals reside. We find that the (quasi)-causal effect of education on economic ideology increases in economically challenged areas.