This chapter examines the current state of research and knowledge about the Chicano dropout problem. In 1986, in every age group, dropout rates were higher for Chicanos than for Whites or other ethnic or racial groups. National dropout rates have improved slightly for Hispanic and Mexican-origin populations since 1980 but remain more than twice as high as rates for Whites. Factors that have been linked to the Chicano dropout problem include family background influences such as socioeconomic status, parental academic involvement, academic encouragement, and social support. Other contributing factors include the type of schools that students attend; family and community environments; and personal characteristics, attitudes, and behaviors. There are sizable economic and social consequences to dropping out of school for all ethnic groups, yet Hispanics and Chicanos may have less to gain economically from finishing high school than other students. For example, White high school dropouts were more than twice as likely as graduates to have no work experience during the year, but for Hispanics there was little difference between dropouts and graduates. Another study found that wage differences between White high school graduates and dropouts were much higher than differences between Hispanic high school graduates and dropouts. Programmatic solutions to the Chicano dropout problem address the failure of the educational system and focus on basic skills training, job-oriented services, and support services. Systemic solutions address the dropout problem as a social problem as well as an educational issue. Systemic solutions require fundamental changes in the educational system and not merely programmatic solutions. Contains 89 references. (LP)