The 1976 study compared a sample of 364 releasees from Federal and federally contracted CTC's with a sample of 337 inmated released directly to the community without the benefit of a CTC. Only those released on parole or probation supervision were studied for both groups. Analysis of covariance design was used to control differences between the two groups, and background variables such as race, sex, and level, need (e.g., to upgrade job skills) were statistically controlled. Positive adjustment to the community was measured by number of days employed and amount of money earned. Criminal behavior was measured by a severity score based on the relative seriousness of any new arrests, and a dichotomous (success' or failure) recidivism measure. Results on days employed and money earned showed that offenders referred to a CTC have better employment records during the first months after release. It also appeared that both high and low need offenders benefited from CTC referral. Program impact, however, tended to dissipate the longer the subject was free in the community. No evidence indicated that offenders referred to a CTC engaged in criminal activity less often or that their criminal activity was relatively less serious. Nevertheless, the offenders most likely to commit new crimes, may engage in less criminal activity if referred to a CTC. Apart from the economic and humanitarian reasons for utilizing halfway houses, CTC's thus are useful in aiding the offenders' transition into the community. Despite the limited effect of CTC placement on recidivism, such placement does provide a worthwhile service to offenders in terms of employment. Several tables and three references are provided.