More than half of all California youth ages 13 to 24 have a foreign-born parent. Because a large number of these immigrant parents have a limited education, lack of improvement in educational attainment from one generation to the next would have serious implications for the state economically as well as socially. Education is an important determinant of social and economic well-being, such as income, health, home ownership, and civic participation. The value of education in the California labor market has increased substantially in recent decades and projections suggest that workers without a college education will continue to see their earnings erode. Some recent studies have suggested that intergenerational progress may stall between the second and third generations. The concern for educational progress is particularly acute for Mexican Americans who, even by the third generation, have very low levels of educational attainment. This study examines educational attainment among California's youth by race, ethnicity, and immigrant generation. It finds that intergenerational progress has not stalled but rather that second- and third-generation immigrants have made substantial educational progress when compared with their parents. Nevertheless, the low educational attainment of Mexican Americans remains a concern and the study examines the factors that influence educational attainment and the policy implications of the findings. (Contains 3 appendices, 8 figures, & 26 tables.)