As part of the School Action Effectiveness Study, 406 Milwaukee inner-city, unemployed dropout youths were surveyed seven months after intake into an employment counseling and placement center. Personality characteristics were assessed at intake. At follow-up, personality characteristics, employment and schooling status, and self-reported police contacts were measured. Hierarchical multiple regression analyses controlling for previously measured personality suggest that employment has no effect on "psychological health" or "interpersonal competency." One of the five measures of employment status (fulltime work in the last six months) explained a significant 2 percent of the variance in "rebellious autonomy" at follow-up. Return to school had significant negative effects on psychological health and interpersonal competency for this dropout sample. Self-reported arrests were associated with age, gender, and interpersonal competency; there was no relationship between employment and delinquency in these data. These results have implications in terms of options available to dropout youth. (Author)