Through August, 1979, approximately 63,000 low-income youths in 17 areas across the country had been enrolled in Youth Incentive Entitlement Pilot Projects that guaranteed them a part-time job during the school year and a full-time job during summer months on the condition that they remain in, or return to, a secondary school or enroll in an equivalency education program; 30,000 youths were currently enrolled. A study of the program for the period September 1, 1978, through August 31, 1979, showed evolving relationships between the prime sponsors and the educational system and between the prime sponsors and the private sector, and growing experience in dealing with school drop-outs. Several new activities were launched during this period, including a private sector wage subsidy variation experiment; an effort to provide educational resources; and a modest expansion in several sites. During this period, large numbers of youths were employed and attending school, the share of private sector worksites was growing, and youths were remaining in the program for fairly long periods of time. However, while substantial improvements in administration were noted, the program model continued to pose a challenge, and the effects of the rapid start-up were still apparent at some sites. In a few cases, sites experienced persistent operational problems. (KC)