The study examines the employment status and living conditions over a 3-year period of all special education students from 13 school districts who graduated or aged out of these programs in 1984, 1985, and 1986. Data were gathered through a review of school records and telephone interviews with parents. Preliminary results concerning the employment rate 6 months after graduation found ranges from 71% employed for nonhandicapped students to 38% employed for severely handicapped students. From 6 months to 30 months after employment rates increased for the mildly mentally retarded (38% to 52%) and decreased for the behavior disordered (52% to 22%). Although 23% of the nonhandicapped and learning disabled students earned the minimum wage or better at 6 months; the sensory impaired, mildly mentally retarded, and severely handicapped showed a rate of less than 10% earning minimum wage at 6 months. Sensory impaired students had the highest rate of enrollment in postsecondary programs (58%) with other handicapped populations attending at a rate of 30% or less. The percentage of behavior disordered students neither working nor attending postsecondary education program increased from 10 to 82% between 6 and 30 months. Percentages of handicapped students living in independent settings after 6 months ranged from 4% (severely mentally retarded to 18% (learning disabled). (DB)