With a growing Mexican American population and an increasing dropout rate predicted for this group, research is needed to examine ways of deterring this trend and increasing retention rates. The current study examined extracurricular activity, perception of school, and ethnic identification, and the association with school retention rates among Mexican American and White non-Hispanics. Individuals reporting participation in extracurricular activity were 2.30 times more likely to be enrolled in school than were those not participating in extracurricular activity. Those Mexican Americans reporting a higher White non-Hispanics ethnic identity level were 2.41 times more likely to be enrolled in school and had a more positive perception of school than did Mexican American individuals reporting low levels of White non-Hispanics ethnic identification.