A four-year study examined the nature and policy implications of school and employer practices to help youth prepare for employment. Data for the study were compiled from a telephone survey of 3,500 employers; a mail survey of 750 employers from across the country; 493 employers, 71 teachers, and 1,565 students from 5 major U.S. cities who participated in an employability survey; and 76 Columbus, Ohio employers who attended a half-day hiring decision seminar. In-school preparation of youth for employment and for the transition from school to work was examined from the point of view of basic skills and the problem of student motivation, part-time work during high school, high school curricula, and the selection of young workers. Employer training practices were examined with respect to the theory of on-the-job training (OJT), the magnitude of OJT, the impact of job-specific training on productivity and turnover, and reasons for underachievement in OJT. Policy implications of these practices were formulated. (This report includes 17 tables, 16 figures, 10 pages of references, and appendixes summarizing the early impact of high school achievement on wages and earnings of graduates, the contents of 6 studies on selecting young workers, and data sampling techniques used in the study.) (MN)