ABSTRACTWe estimate a multivariate model specifying the direct and indirect effects of seventh and eighth grade psychosocial experiences on dropping out of high school. Data were provided by 2,876 subjects tested in the seventh grade, eighth grade, and as young adults in their mid‐twenties. The model specifies direct and indirect inverse effects of academic performance and motivation to stay in school, and positive effects of negative social sanctions and the assumption of age‐inappropriate role behaviors on dropping out of school. Such relationships hold controlling for subjects’ gender, race/ethnicity, and father's educational status. The results, in general, are consistent with the hypotheses, demonstrating benign consequences of academic performances and motivation to stay in school and adverse consequences of social sanctions and age‐inappropriate adoption of roles regarding continuation of schooling.