This study evaluates the effects of school desegregation by court ordered busing on the subsequent dropout rate of majority and minority students. It also investigates the relationship of school socio-economic composition and teachers' expectations. The hypothesis of the study is that with the influence of school socio-economic composition considered, the more favorable attitudes of teachers toward minority students in desegregated schools will be reflected in a more satisfying minority student school experience. This will decrease the minority student dropout rate. Data collected for the study are part of a larger four-year longitudinal panel study of majority and minority student achievement and self-concept in a southwestern community with a population which is approximately 65% anglo, 20% black, and 15% Mexican American. Using the before and after busing measures of dropout rates, school records and personal interviews, this research finds majority dropout rates are not effected by desegregation procedures. While the dropout rates of bused minority students appear to be identical to that of non-bused minority students, large disparities between minority rates in various bused sectors indicate highly uneven educational experiences of bused minority students. A conclusion of this study is that the more favorable expectations of teachers at higher socio-economic climate schools produce lower minority student dropout rates. (Author/AM)