This literature review examines the effect of teacher expectations on minority students, and especially on Mexican-American students. The review focuses on four areas: (1) teachers' attitudes and expectations toward Mexican-American children; (2) teachers' attitudes and expectations toward minority children; (3) teachers' performance expectations of students; and (4) other expectations which determine teacher behavior. The research indicates that teachers do not expect Mexican-American children or minority children as a group to excel in school; that Mexican-American children lead double lives--family atmosphere and values are in conflict with the school environment and Caucasian values; and that school districts appear to lack a commitment to the Mexican-American student, thereby allowing institutional racism and racial bias to flourish. In order to develop insight and awareness to counteract the negative expectations of teachers, it is recommended that boards of education, community groups, district administrators, and government agencies make a commitment to develop and implement programs that are sensitive to the needs of Mexican-American children; and that teachers be trained and made more aware of the vast influence that their attitudes and prejudices have on pupils. (Contains 31 references.) (LL)