Drop-out from upper secondary school is considered a widespread problem, closely connected with youth unemployment. The aim of the current study was to examine whether parents' level of education predicted drop-out for 16-24-year-olds when accounting for basic skills. For this purpose, data from the Norwegian (n = 996) and American (n = 641) samples in the Adult Literacy and Life Skills Survey (ALL) were used. Stepwise logistic regression showed that parents' educational level was a significant predictor of early school leaving in both countries, but explained significantly more of the variance in USA than in Norway. Mothers' educational level predicted early school leaving in USA also when accounting for youth's basic skills, but this was not the case in Norway. (Contains 5 tables, 1 figure and 3 footnotes.)