The cultural capital in families, more specifically, the educational level of parents, has during the last decades been shown to be the most important dimension of socioeconomic influence on school performance in many countries. Less is known about the factors that actually mediate this influence. The aim, therefore, is to investigate the relative importance of various mediating factors, as well as the total effects of parents' educational levels, on the reading achievement levels of children in Grade 4. Data in this comparative analysis come from the Progress in International Reading Literacy Study (PIRLS) 2001 and include representative samples from 7 countries: Sweden, Norway, Bulgaria, France, Hong Kong, Hungary, and Italy. Variables indicating possession of cultural capital in the families are collected from the home questionnaire. A total achievement score is used as outcome variable. The effects of parents' education on reading achievement are estimated with structural equation modelling. Substantial effects of parental education were found, but the pathways for indirect effects that were mediated through other variables varied between countries. [Copyright of Educational Research & Evaluation is the property of Routledge. Full article may be available at the publisher's website: http://dx.doi.org/10.1080/13803610802576742]