This study uses statistical data from the Current Population Survey to develop new state-by-state dropout estimates as an alternative to those published by the U.S. Department of Education (USDE). The following new findings are reported: (1) youth are completing high school at a higher rate than previously noted; (2) variations in dropout rates among states are not as great as previously suggested; (3) variations in state dropout rates are related to low parental education and racial/ethnic factors; (4) state labor forces have higher high school completion rates than have been implied in previously published dropout rates; and (5) the states' dropout rates and college participation rates are generally associated. The following findings about Georgia's dropouts are reported: (1) from 1980 to 1987, the percentage of Georgians completing high school increased from 56.4 percent to 71.2 percent and the national rate increased from 66.5 percent to 75.6 percent; (2) in 1986 and 1987, Georgia's dropout rate was 18.3 percent and the national rate was 13 percent; (3) in 1986 and 1987, 79.7 percent of Georgia's labor force had completed four years of high school and the national average was 83 percent; (4) in 1986 and 1987, 40.3 percent of Georgians aged 18 to 24 years participated in higher education and the national average was 42.2 percent; and (5) dropout rates and college participation rates are generally associated and both are products of sociocultural factors, but nonresident enrollment influences college participation rates. Recommendations for state dropout prevention policies are made. Statistical data are presented in five tables and three graphs. A list of 45 references and 3 tables of statistical data to accompany the path analysis are appended. (FMW)