This report reviews the literature on early departure from school in America, both past and present, in order to ascertain why students drop out of school, what the consequences are for the students who do so, and what schools can do to reduce the dropout rate. After a brief historical perspective on the problem, the social and economic costs of dropping out are summarized, and the need for a consistent national definition of the term "dropout" is discussed. The next section cites statistics on the number and characteristics of dropouts over the past 10 years. Findings on the causes of dropping out are subdivided into student factors, school factors, and societal factors. Findings are cited that show how staying in school helps life chances and helping strategies for at-risk youth are discussed in detail. The final section proposes a research program in the area of learning disabilities, as one way to identify at-risk students early in their schooling. An extensive bibliography is included. (TE)