Using data from the Youth in Transition Survey (YITS), this paper provides an up-to-date description of educational and labour market pathways (or transitions) among Canadian youth. It also estimates the effect of academic abilities, measured by PISA math and reading scores, on such transitions. Descriptive statistics show that educational success is positively related to math and reading achievements as well as family background characteristics. Further, working while in high school reduces educational attainment while participation in school organised activities increases the probability of grade progression. The results also indicate that students with low reading achievements are not only less likely to remain in school; they are also less likely to return to school once they have left school. Finally, the risk of entering unemployment after school is inversely related to the level of completed schooling. (Contains 12 tables and 23 footnotes.) [This research paper was prepared for Human Resources and Skills Development Canada by Tomasz Gluszynski Human Resources and Skills Development Canada and Justin Bayard, Human Resources and Skills Development Canada, as a background paper to the PISA Thematic Report--Pathways to Success.]