A PROGRESS REPORT IS GIVEN ON THE DEVELOPMENT OF A FRAMEWORK FOR THE EVALUATION OF EDUCATIONAL PROGRAMS. THE FRAMEWORK WILL BE IN THE FORM OF A MATHEMATICAL MODEL THAT WILL PROVIDE A METHOD FOR THE ANALYSIS OF BENEFITS DERIVED FROM THE ELEMENTARY AND SECONDARY EDUCATION ACT (ESEA), TITLE I PROGRAM. THE MODEL IS BASED ON A CONCEPT OF EDUCATION AS AN INDUSTRY THAT TAKES CHILDREN WITH CERTAIN CHARACTERISTICS AND EMBODIES HUMAN CAPITAL (KNOWLEDGE) IN THEM. FROM THIS CONCEPT, TWO FACTORS WERE IDENTIFIED THAT WERE CONSIDERED TO DETERMINE THE NATURE OF THE EDUCATION PROCESS--(1) THE CHARACTERISTICS OF THE CHILDREN AND (2) THE CHARACTERISTICS OF THE SCHOOL INPUTS. ESEA PROJECTS WERE AIMED AT PROVIDING ADDITIONAL EDUCATIONAL BENEFITS TO DISADVANTAGED CHILDREN, THAT IS, THOSE FROM LOW-INCOME FAMILIES, AND WERE REPORTED TO HAVE THE FOLLOWING EFFECTS--(1) INCREASED THE LEARNING CAPACITY OF THE CHILDREN AND THUS INCREASED THEIR EARNING CAPACITY, AND (2) THE INCREASED LEARNING CAPACITY ALSO INCREASED PROBABILITY OF STAYING IN SCHOOL, INCREASED PROBABILITY OF GRADUATING AND GOING ON TO HIGHER EDUCATION, AND REDUCED THE PROBABILITY OF BECOMING JUVENILE DELINQUENTS. IN THIS STUDY, THE BENEFITS DERIVED FROM THE PROGRAMS WERE ANALYZED IN TERMS OF INCREASE IN PERSONAL INCOME FROM GRADUATING FROM HIGH SCHOOL AND FROM GOING TO COLLEGE, REDUCTION OF UNEMPLOYMENT, REDUCTION OF JUVENILE CRIME, INTERGENERATION EFFECTS, AND INCREASED LABOR FORCE MOBILITY. THE MATHEMATICAL MODEL BEING DEVELOPED WILL PROVIDE A MEANS OF EVALUATING THE MONETARY BENEFITS FROM TITLE I PROGRAMS BY DETERMINING THE MONETARY BENEFITS LESS THE COSTS OF THE PROGRAM. (AL)