A study explored the role of work experience in addressing problems of homeless people in Saint Paul (Minnesota) during the 1989-91 grant cycles of the McKinney Job Training for the Homeless Demonstration Program. The program included a number of elements: outreach, intake, assessment and enrollment, orientation, work experience, basic skills/General Educational Development program/adult basic education, job skills class, job search, job placement, and follow-up. Of the 249 participants, most were likely to be middle-aged, white or black males involved in the shelter system or transitional housing; 71 percent were homeless for 12 months or less; and 56.9 percent had a full-time job within the last 12 months. A direct association existed between months homeless at intake and months since a full-time job. Over 70% had high school diplomas or equivalencies, and literacy levels were within national norms. Although most identified health, self, and family as priorities, current life-styles did not reflect these concerns. Self-Assessment Scales showed that many were isolated, individualistic survivors with a pessimistic world view. Mental health issues concerned 22.1 percent, chemical dependency issues 53.4 percent. Sample scores on the Wechsler Adult Intelligence Scales-Revised indicated "normalcy," but results were limited in predicting success in the work experience program. Successful completion of the work experience or other program objectives was achieved by 141 (56.6%). During work experience, each individual received a pay raise after 2 months. This served as a powerful program incentive, and the most powerful predictor of success became participants' ability to reach the 2-month mark. (107 endnotes) (YLB)