Using data from a household-based, stratified random sample of youth and their caregivers from low-income inner-city neighborhoods, this study examined the variability in the academic achievement of Latino youth. The results indicate a significant advantage in reading achievement for first- and second-generation immigrant youth, as compared to the third generation, which persisted even after controlling for important child, parenting, human capital, neighborhood, and demographic covariates. Follow-up analyses within the subsample of the first- and second-generation youth indicate that more recent arrival to the United States predicted higher reading achievement. Yet, there was no evidence of a similar immigrant advantage in math. The implications of these findings, limitations of the present study, and directions for future research are discussed.