Using the Child Behavior Checklist scores for social competence and total problems, the authors found few differences in the demographic, emotional, and behavioral characteristics of the two groups. While the scores for both groups were quite high and similar, white children scored significantly worse than black children in internalizing, externalizing, and total problems in the correctional setting, but not in the psychiatric hospital. Race was the only predictor of placement. Future research should focus on the mental health needs of adolescents in nonmental health settings and the procedures by which adolescents are assigned to service settings. 2 tables and 14 references (Author abstract modified)