A DESCRIPTION OF THE WAYNE COUNTY DECENTRALIZATION PROJECT INTAKE PROCEDURES, COMMUNITY SERVICES, AND INSTITUTIONAL SERVICES IS FIRST PROVIDED. THE REPORT EXAMINES THE WAYNE COUNTY SYSTEM OF DECENTRALIZED YOUTH SERVICES AT EACH LEVEL OF THE SYSTEM. THE CHARACTERISTICS OF THE DELINQUENT YOUTH POPULATION ARE ASSESSED, WITH PARTICULAR EMPHASIS ON THE INTERACTION OF CLIENT VARIABLES. THE INTAKE AND PLACEMENT PROCESS IS THEN EXAMINED, AND THE EFFECT OF INTAKE AND PLACEMENT ON THE PLANNED DIFFERENTIAL PLACEMENT PROCESS IS REVIEWED. IT WAS FOUND THAT DIFFERENTIAL PLACEMENT IS INDEED TAKING PLACE, AND THAT THIS HAS RESULTED IN THE DIVERSION OF STATE WARDS FROM INSTITUTIONS. GOAL ATTAINMENT OF THE COMMUNITY RESIDENTIAL FACILITIES, THE ATTENTION CENTERS (NON-RESIDENTIAL PROGRAM CENTERS) AND INSTITUTIONS IS THEN ASSESSED. FINALLY, AN ANALYSIS OF THE RELATIVE EFFECTIVENESS AND RELATIVE COST-EFFECTIVENESS OF COMMUNITY AND INSTITUTIONAL SERVICES IS PRESENTED FOR CATEGORIES OF YOUTH ALIGNED BY CRITICAL DEMOGRAPHIC AND OFFENSE CHARACTERISTICS. EFFECTIVENESS AND COST-EFFECTIVENESS ARE EXAMINED AT THE THIRD AND SIXTH MONTH AFTER PLACEMENT. THE AUTHORS CONCLUDE THAT FOR MOST YOUTHS, COMMUNITY PLACEMENT IS AT LEAST AS EFFECTIVE AS INCARCERATION AS A SHORT-RUN DETERRENT TO RECIDIVISM AND THAT DIFFERENTIAL TREATMENT, SUCH AS IT EXISTS, IS A VIABLE CONCEPT. (AUTHOR ABSTRACT MODIFIED)