LABELING THEORY VIEWS THE REACTION OF SOCIETY AND PARTICULARLY CRIMINAL JUSTICE AGENCIES TO NONCONFORMING BEHAVIOR TO BE A SIGNIFICANT CAUSE FOR THE REINFORCEMENT AND PERPETUATION OF ALIENATED BEHAVIOR. THIS THEORY IS ACKNOWLEDGED TO HAVE BEEN THE PRIMARY POLICY RATIONALE FOR DIVERSION AND DEINSTITUTIONALIZATION OF JUVENILES. LABELING THEORY, HOWEVER, IS SUBJECT TO PERSISTENT CHANGE AND HENCE LACKS THE RIGOR AND LOGIC OF A SCIENTIFIC THEORY. IT ALSO LACKS SUFFICIENT EMPIRICAL RESEARCH TO ESTABLISH ITS VALIDITY. RESEARCH CONDUCTED IN THE AREAS OF POLICE ARREST, COURT CONTACT, INSTITUTIONALIZATION, AND TREATMENT OF JUVENILE IS EXAMINED TO DETERMINE THE DEGREE TO WHICH LABELING THEORY IS SUBSTANTIATED. IT IS CONCLUDED THAT LABELING IS NOT FULLY DEVELOPED, RIGOROUS THEORY; RATHER, IT PROVIDES A LIMITED PERSPECTIVE THAT DRAWS NEEDED ATTENTION TO PROCESSES BY WHICH SOCIETY MAY UNWITTINGLY PRODUCE DEVIANT BEHAVIOR. IT IS TOO EARLY TO DETERMINE WHETHER LABELING WILL BE ABLE TO OBTAIN THE STATUS OF A THEORY. WHILE IT IS GRANTED THAT EVIDENCE SHOWS THE UNDESIRABLE CONSEQUENCES OF LABELING, THERE IS ALSO EVIDENCE THAT LABELING HAS DETERRENT AND TREATMENT IMPETUS. THE DESTRUCTIVE CONSEQUENCES OF LABELING ARE VIEWED AS BUT ONE SET OF FACTORS CONTRIBUTING TO THE DEVELOPMENT OF DELINQUENT BEHAVIOR. RESEARCHERS ARE ADVISED TO INCORPORATE LABELING, ALONG WITH OTHER CONTRIBUTING CAUSES OF DELINQUENCY, INTO A COMPLEX MODEL THAT CAN EXPLAIN AND PREDICT THE DYNAMICS OF DELINQUENCY DEVELOPMENT. THE CHALLENGE CONFRONTING PRACTITIONERS AND POLICYMAKERS IS THAT OF COMBINING THEORY AND RESEARCH WITH THE JUDGMENT OF EXPERIENCE. (RCB)