Based on the National Longitudinal Surveys of over 10,000 men and women aged eighteen to twenty-seven who were interviewed annually from 1966 through 1971, this study investigates how the youth labor market operates and identifies its manpower problems that should be addressed by policymakers. A five-part recursive model is established for the youth labor market consisting of labor market status, wage determination, turnover, duration of subsequent unemployment, and wage growth. It is found that (1) the relationship between educational attainment and subsequent labor market success is striking; (2) education has a positive effect on wages; (3) job tenure is a deterrent to turnover, but job change represents a definite attempt to improve economic position; (4) the duration of unemployment and wage growth are directly affected by aggregate economic conditions since any decline disproportionately falls on youth, increasing the duration and decreasing their earning potential; (5) workers generally do not remain in jobs below their capabilities; and (6) competitive forces rule the youth job market with productive capabilities being rewarded and workers who initially earn less than their potential increasing their wages over time. Comparisons are drawn between early market entrants and college-goers, the employed and unemployed, blacks and whites, men and women, married and unmarried workers, and particular occupations. (ELG)