This methodological paper concentrates on the role of education in meeting employment objectives in developing cities. Section 1 reviews briefly main results of the significant amount of existing basic research on the issue of education and employment. The second section then briefly reviews policy-oriented documentation to answer the question, What is the nature of the policy suggestions developed by policy-oriented planning institutions and on what type of methodology and data are they based? These policy concerns on education and employment are classified into four broad categories: the relevance of education to social and economic development, education and productive work, the mismatch between school curriculum and available jobs, and youth unemployment. On the basis of these two reviews the third section then develops a single research methodology for answering relevant policy questions being asked by planners. Proposed methodologies answer simultaneously the questions of the nature of and educational level associated with unemployment. They include (1) review of census data and other surveys, (2) cross-section employment surveys, (3) tracer studies, and (4) evaluation of special programs. (YLB)