The report describes the Swedish educational and employment system and efforts underway to facilitate the transition from school to work for handicapped adolescents. A review of the general education system touches upon administrative structure, finance, and trends in compulsory comprehensive school and in upper secondary schools. The next section discusses factors in the labor market and examines labor policy regarding handicapped persons. Transitional arrangements undertaken in recent years are noted, and curriculum adaptations and policy changes to facilitate the movement of handicapped students from school to work are considered. Among problems with the transition are the insufficiency of "ordinary" measures as well as the problems inherent in the need for coordination. Three innovative approaches--use of escorts, group dynamic method, and computerized job procurement--are described. (CL)