JUSTIFICATIONS FOR DIVERSION ARE IMPORTANT FACTORS IN ALL UPWARD POLICY DECISIONMAKING. AMONG SOME OF THE REASONS COMMONLY PRESENTED IN FAVOR OF DIVERSION ARE ITS HUMANENESS, ITS COST EFFECTIVENESS, AND ITS FUNCTION IN DECREASING THE OVERBURDENED JUVENILE JUSTICE SYSTEM CASELOAD. OBSERVERS OF THE DIVERSION PROGRAMS HAVE NOTED HOWEVER, THAT THE SUCCESS OF THESE PROGRAMS IN AVOIDING THE STIGMATIZATION OF THEIR CLIENTS IS UNKNOWN. THE DATA REPORTED IN THIS STUDY WERE DERIVED FROM INTERVIEWS WITH TWO GROUPS OF JUVENILES; ONE GROUP WAS COMMITTED TO TRAINING SCHOOL, THE OTHER GROUP HAD COME TO THE ATTENTION OF A YOUTH SERVICE AGENCY WITHIN THE SAME STATE. ALL SUBJECTS WERE ASKED ABOUT THEIR PERCEPTIONS OF ANY LIABILITY OR STIGMA ACCRUING TO THEM AS A CONSEQUENCE OF THEIR EXPERIENCES WITH THE SYSTEM. PERCEIVED LIABILITY WAS MEASURED AROUND FIVE SPECIFIC LIFE DIMENSIONS, INCLUDING RELATIONSHIPS WITH PARENTS, SCHOOL PERFORMANCE, RELATIONSHIPS WITH FRIENDS, FUTURE EMPLOYMENT POSSIBILITIES, AND FUTURE INVOLVEMENT WITH THE LAW. DATA PRESENTED REVEAL MIXED FINDINGS REGARDING THE SUCCESS OF DIVERSION IN AVOIDING THE STIGMATIZING CONSEQUENCES OF TRADITIONAL JUVENILE JUSTICE SYSTEM PROCESSING. NO CONSISTENTLY SIGNIFICANT DIFFERENCES WERE FOUND BETWEEN PERCEPTIONS OF THE TWO GROUPS. IF SOCIETY WISHES TO AVOID STIGMATIZING JUVENILES, IT IS NOT ENOUGH TO SIMPLY DIVERT. SOCIETY MUST BEGIN TO CONSIDER WHAT IT IS DIVERTING TO. POLICY EVALUATIONS AND PLANNING OF DIVERSIONARY PROGRAMS SHOULD FOCUS ON WHAT CONSTITUTES DIVERSION AND ON EFFECTIVE USE OF THOSE INSTITUTIONS SUCH AS SCHOOLS, FAMILY, AND EMPLOYMENT WHICH ARE CAPABLE OF GENERATING CONVENTIONAL COMMITMENTS. TABULAR DATA, NOTES, AND REFERENCES ARE INCLUDED. (LWM)