The central purpose of the present study is to examine whether increases in the potential productivity and/or the credential-derived social attractiveness of ghetto workers are translated into higher quality employment. Under the untested assumption that the potential productivity of a worker living in the ghetto is positively correlated with the number of years of school he has completed, and that participation in formal training programs similarly increases potential productivity, this study examines the magnitude of the job-related returns to these investments in human capital and the sensitivity of these returns in intrametropolitan variations in residential location. Ten models are developed in the first chapter. The next two chapters present estimates of models (8) through (10), using exclusively ghetto data. In order to place these findings in context, and to study additional questions associated with the concept of "suburbanization," returns to the human capital of workers living outside the ghetto are estimated in Chapter Four. Chapter Five places these findings within the structure of a new labor market theory. Chapter six summarizes the statistical findings and draws upon these in a critical evaluation of the "current orthodoxy" concerning urban minority manpower policy. Finally, new directions in employment policy are recommended in Chapter Seven. (Author/JM)