This study examines the effect of family structure on high school grad
uation by race and gender using data from the first twenty-one waves o
f the Panel Study of Income Dynamics and recently available retrospect
ive marital histories. The nature of the data allows for a more comple
te specification of family structure than has been heretofore possible
. The analysis tests the hypothesis that the negative effect on educat
ional attainment often associated with living in a mother-only or step
father family stems primarily from the reduced level of economic resou
rces available to these households. Empirical findings indicate that l
iving with a widowed, divorced, or separated mother has little or no e
ffect on educational attainment once we control for economic status. H
owever, living in a stepfather family appears to have a persistent neg
ative effect on high school graduation rates.