This study estimates the relationship between parental welfare receipt and children's adulthood educational attainment. Data come from the Panel Study of Income Dynamics (PSID). The PSID is a longitudinal study of a nationally representative sample of U.S. families conducted by the Survey Research Center of the University of Michigan. Cross-sectional regression results confirm findings from previous studies that greater parental welfare receipt is significantly associated with children's poorer educational attainment. Fixed-effect regressions indicate that the relationship between parental welfare receipt and children's educational outcomes becomes weaker after controlling for unobserved family characteristics, but they do not eliminate the negative relationship. The relationship between parental welfare receipt and children's educational attainment is not uniform across childhood stages. Additional analyses suggest that parental welfare receipt is not negatively related to educational attainment if combined with at least quarter-time work by the mother. (Contains 9 tables and 83 references.) (Author/SLD)