Researchers at the Policy Information Center of the Educational Testing Service (ETS) have analyzed information from the National Center for Education Statistics; data from state, city, and other sources; and results from recent surveys of high school students to present a summary of the current dropout situation. The 1995 ETS report, "Dreams Deferred: High School Dropouts in the United States," which has a special focus on urban youth, is summarized in this digest. Although calculating an accurate dropout rate is nearly impossible because of differences in counting methods and definitions and student mobility, the dropout rate appears to be declining. In 1993 about 381,000 students left school without graduating. Nearly two-thirds dropped out before the 10th grade. The dropout rate in large cities remains high, although it too has decreased slightly in recent years. With respect to lifetime wages, the gap between dropouts and more educated adults is widening steadily. Student survey responses have indicated that dropouts tend to have many characteristics in common and that they express a variety of reasons for dropping out. Most dropouts surveyed recognized that they needed further education, and they expected to acquire it, although their expectations suggested that they did not believe they were sacrificing their futures by dropping out. (Contains 7 references.) (SLD)