A Minnesota study examined the secondary school dropout problem from the perspective of both the education system and the employment/training system. Findings from a pilot study involving 24 public secondary schools and the 24 counterpart Comprehensive Employment and Training Act agencies were compared with information from national and state studies and data sources. Urban areas were found to have the highest dropout rates. Eleventh grade was the peak year for dropping out. Dropouts (1) had lower occupational aspirations than their peers; (2) had higher unemployment rates; (3) earned less future income; (4) had lower reading, achievement, and achievement motivation levels; (5) participated less often in extracurricular activities; (6) had high levels of school absenteeism, school failure, and grade retention; (7) viewed school negatively; and (8) more likely had experienced some form of trauma. Characteristics of successful programs for dropouts included a personalized/individualized approach, basic skills remediation, preparation for employment, support services and counseling, paid work experience, community-based learning experiences, and credit toward high school graduation. (Recommendations for local, state, and federal systems comprise approximately one-half of the document. They relate to programs, funding, cooperation, and technical assistance.) (YLB)