As part of two research projects on schools for the mentally retarded and their employment possibilities, this report describes the regular and special education systems in the Netherlands, examines the situation of adults who attended the special schools, and discusses segregative circumstances in the Netherlands. The first chapter provides an overview of the Dutch education system at all levels including the role of the Ministry of Education, private and public-authority schools, compulsory education requirements, and advisory and consultative bodies. The second chapter looks at special primary and secondary education including special schools, entry to a special school, and the extent of special education. The third chapter considers living and daycare alternatives for mentally handicapped persons before and after the school period. Covered are: assistance after the birth of a handicapped child and early identification; living and daycare alternatives; the mentally handicapped and labor (the sheltered workshop); and financing the system. The final chapter offers some critical notes focusing on the structure of the system and problems within the system (e.g., difficulties of student placement, waiting lists, needs of ethnic groups), and living and daycare alternatives (e.g., shortage of placement possibilities). Includes 36 references. (DB)