Results indicated that within-family social capital was explained mainly by socioeconomic status. That is, the varying levels of social capital found across the four groups (Whites, African-Americans, Hispanics, and Asians) were explained by the group’s relative standing in the class structure. However, the effects of social capital on school dropout varied across the groups. The social capital harnessed by Whites and Asians reduced their likelihood of school dropout more significantly than the social capital harnessed by African-Americans and Hispanics. Asians enjoyed the highest “returns” on social capital in terms of reducing the racial gap in school dropout, while African-Americans had the lowest “returns” on social capital for school dropout. The findings add important information to debates concerning the intergenerational transmission of racial stratification in American society. The findings suggest that at all class levels, social capital works to provide greater advantages to members of relatively privileged groups. In particular, social capital is more likely to propel Whites up the economic ladder while providing fewer opportunities for those in less privileged ethnic groups. Data were drawn from the 1996 dropout and nondropout components of the National Education Longitudinal Study (NELS), which surveyed a nationally representative sample of 5,993 eighth graders and their parents, teachers, and principals. Variables under examination included school dropout, six categories of within-family social capital--parental monitoring, family structure, parental discussions about school, parental attendance at school events, and attachment to parents--and sociodemographic characteristics. Data were analyzed using multivariate logistic regression models. Future research should investigate the home- and school-level social capital to determine the impact of specific forms of parental involvement on school dropout. Tables, footnotes, references