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The issue of over or under representation of ethnic minority students in special education placement has received a great deal of attention in recent years. An equally important question that has not received as much attention centers on the impact of special education placement, particularly early in a child’s education career, on subsequent academic growth. This study used data from the Early Childhood Longitudinal Survey to examine how special education placement impacted change over time in reading and mathematics test scores, as well as parent and teacher perceptions of children’s academic prowess, while controlling for family demographics, and school characteristics. Study results revealed that in some instances early identification did result in relatively more positive academic outcomes than did nonidentification.