Examination of dropout trends in New York City for 1986-87 reveals the following: (1) the annual dropout rate was 7.3 percent for the high schools, and 8.3 percent system-wide; (2) the estimated four-year dropout rate was 26.3 percent for the high schools, and 29.2 percent system-wide; (3) the 1986-87 four-year high school dropout rate was 6.2 percentage points lower than the 1984-85 rate, and 1.6 percentage points lower than the 1985-86 rate; (4) the 1986-87 four-year system-wide dropout rate was 6.1 percentage points lower than the 1984-85 rate, and 1.5 percentage points lower than the 1985-86 rate; (5) compared to the previous year, there were 7.0 percent fewer dropouts from day high schools; and (6) there were 17.0 percent fewer dropouts among students who were scheduled to enter high school from middle school: however, the number of dropouts among students still attending middle schools remained about the same. For the first time, the annual dropout rates and the estimated four-year dropout rates are calculated for the following ethnic/racial groups: (1) American Indian/Pacific Islander; (2) Asian; (3) Hispanic; (4) Black; and (5) White. The distribution of dropouts, and the total high school enrollment of these ethnic/racial cohorts are also included. Data are presented on nine tables. Appendices contain an explanation of procedures, a list of admission and discharge codes, a brief history of dropout accounting in New York City, and tables showing dropouts and graduates from New York City high schools by dropout category and by school. (Author/BJV)