Objective. The rise in the volume and diversity of immigrants to the U
nited States since 1960 has increased concerns about whether assimilat
ion benefits educational achievement. This issue is addressed by evalu
ating the relative merits of three hypotheses regarding generational s
tatus and scholastic performance: (1) straight-line assimilation; (2)
accommodation without assimilation; and (3) immigrant optimism. Method
s. The National Education Longitudinal Study of 1988 is used to examin
e the impact of generational status on three indicators of educational
achievement: grades, achievement test scores, and college aspirations
of eighth graders. Results. Overall, the results are consistent with
hypotheses (2) and (3) and suggest that behavioral differences between
immigrant and native parents are essential ingredients in explaining
the differential performance of immigrant and native youth. However, t
he effects of generational status on scholastic outcomes differ by rac
e and ethnic group, such that parental nativity is most crucial for As
ians and less so for Hispanics, while child's birthplace is more decis
ive for educational achievement among blacks. Conclusions. Because for
eign-born youth are at a slight disadvantage due to their limited Engl
ish skills and because immigrant parents promote academic achievement,
second generation youth (i.e., native-born children of foreign-born p
arents) are best positioned to achieve scholastically.