Minority deficits in cognitive and noncognitive skills emerge early and then widen. Unequal schooling, neighborhoods, and peers may account for this differential growth in skills, but the main story in the data is not about growth rates but rather about the size of early deficits. Hispanic children start with cognitive and noncognitive deficits similar to those of black children. They also grow up in similarly disadvantaged environments and are likely to attend schools of similar quality. Hispanics complete much less schooling than blacks. Nevertheless, the ability growth by years of schooling is much higher for Hispanics than for blacks. By the time they reach adulthood, Hispanics have significantly higher test scores than do blacks. Conditional on test scores, there is no evidence of an important Hispanic-white wage gap. Our analysis of the Hispanic data illuminates the traditional study of black-white differences and casts doubt on many conventional explanations of these differences since they do not apply to Hispanics, who also suffer from many of the same disadvantages. The failure of the Hispanic-white gap to widen with schooling or age casts doubt on the claim that poor schools and bad neighborhoods are the reasons for the slow growth rate of black test scores.