Using constructs from Bean's (1990) [In: D. Hossler and J. P. Bean (Eds.), The strategic management of college enrollments. San Francisco:Jossey-Bass] student attrition model and the Berger and Milem (2000) [In: J. C. Smart (Ed.), Higher education: Handbook of theory and research (Vol. XV, pp. 268?338). New York: Agathon Press] college impact model, national survey data, and multilevel modeling techniques, this study examines the extent to which persistence is influenced by the institutional context. The analytic sample is limited to first-time, full-time, degree-seeking undergraduates attending 4-year colleges and universities nationwide. This study finds that selectivity, as measured by the average student academic ability at an institution, has a contextual effect on college student persistence that reflects a positive increment to the chance of persistence that accrues to a student beyond student-level predictors of persistence. Although the implications of the findings are mainly for theory and methods, policy implications are discussed.