In 1999, 11.0 percent of students from families in the lowest 20 percent of the income distribution dropped out of high school; by way of comparison, 5.0 percent in the middle 60 percent of the income distribution dropped out, as did 2.1 percent of students from families with incomes in the top 20 percent (table 1).

Since the mid-1970s, there has been an overall downward trend in the annual estimates of event dropout rates for young adults living in families in each income level-low, middle and high (figure 1 and table A-9). Most of the declines in dropout rates for all income groups occurred in the 1970s and 1980s. In the 1990s, event dropout rates for all income groups have stabilized. For example, event dropout rates for low-income youth approached 10 percent in 1989 and 1990; since 1990, dropout rates have fluctuated between 11 and 13 percent. Event rates for young adults living in middle- and high-income families have also shown no upward or downward trend since 1990, with rates fluctuating between 4 and 6 percent, and 1 and 3 percent respectively.

Income is only one of a number of closely linked factors that may be related to a student's decision to drop out of school; others include race/ethnicity, age, sex, and geographic region of residence. Analyses of all the specific interactions among intervening variables that mediate the dropout decision are beyond the scope of this report. Instead, this report reviews some of the primary factors that are associated with higher event dropout rates¹⁰.