The findings of this study imply that, over the past two decades, black-white differences in educational achievement have been strongly associated with black-white disparities in a variety of educational and economic outcomes. Achievement differences do not necessarily cause gaps in educational attainment, employment, or earnings, but they reflect a set of circumstances responsible for black-white disparities in both the academy and the economy. Addressing the contributing causes of black-white achievement differences will be important in efforts to narrow black-white gaps in educational performance, and perhaps also in subsequent labor market outcomes.