The Youth Incentive Entitlement Pilot Projects (YIEPP) demonstration, which was in full operation from 1978 to 1980, was established to test the efficacy of work combined with education as a remedy for high unemployment, low labor force participation, and the excessive school dropout rate of teenagers. YIEPP offered Federal minimum-wage jobs (part-time during the school year, full-time during the summer) to 16- to 19-year-olds from low-income or welfare households, with the condition that they complete their high school education, either through traditional or alternative education programs. Analysis of the impact of the demonstration found that (1) over 56 percent of the eligible youths participated in YIEPP at least once; (2) YIEPP increased the employment/population ratio for eligible youth by 67.5 percent over the ratio expected in the absence of the program; (3) YIEPP was particularly successful with black youth, whose employment, increased by 102.8 percent, became nearly equal to the employment percentages of white male youth; and (4) the smallest statistically significant YIEPP effect was found for Hispanic females, and there were no significant effects for Hispanic males. Additional effects were that total school enrollment increased significantly, the dropout rate decreased, and the rate of return to school (whether in traditional or alternative programs) for out-of-school youth increased. Finally, YIEPP caused a positive joint increase in schooling and work behavior among the key groups of program youth. (CMG)