This document summarizes the literature on the causes of dropping out, reviews national dropout prevention initiatives, proposes a set of principles to guide dropout prevention programs, and recommends a framework of policies for the Philadelphia (Pennsylvania) Public Schools. The dropout literature indicates that dropping out is a developmental process involving a complicated interaction of student and school factors. The following effective programs were identified: (1) the Youth Entitlement Project (YIEPP); (2) the Summer Employment and Training Program (STEP); and (3) Job Corps. The following programs also appeared to be effective: (1) the Job Readiness Program; (2) the Philadelphia High School Academies; (3) the Focus Project; (4) Project COFFEE; (5) the Family Learning Center; and (6) Cities in Schools. The following principles were compiled from an analysis of program features: (1) deliver education in small, intensive units; (2) develop high teacher expectations, reinforce student self-worth, and hold students to clear standards; (3) use a wide range of instructional techniques; (4) meet the broad range of disadvantaged students' needs; (5) incorporate sustained adult contact; (6) establish school-community partnerships; (7) build in economic incentives; (8) remove barriers to attendance; (9) change ineffective policies; and (10) identify at-risk students early in their careers. A review of existing programs in the Philadelphia schools indicates a strong base for implementing a system-wide approach but the present scope is inadequate. A set of operational and management recommendations is suggested that forms a framework for reform at the school and unit level. A 194-item bibliography and brief descriptions of five programs identified in the text are appended. (FMW)