This chapter examines how social class, race, and ethnicity shape the transition to adulthood, drawing heavily on life course theory, developmental contextualism, and the concepts of risk, resilience, and social capital as analytic anchors. Four domains of functioning are discussed—conceptions of adulthood, mental health, paid employment, and educational attainment. Emphasis is given to studies that illuminate processes that link social location to the development of youth (mediational processes) and studies that examine sources of variation in developmental pathways among economically disadvantaged and ethnic minority youth, with special attention to the positive end of the risk dimension (i.e., promotive factors). We also highlight protective factors, that is, factors and processes that mitigate the negative effects of economic advantage and ethnic minority status on the functioning of youth during the transition to adulthood. Each major section of the chapter concludes with a summary and discussion of questions and issues that merit study in future research. The chapter emphasizes research based on U.S. samples, but incorporates research findings from youth in Canada and Western European countries.