A study explored the feasibility of using the New Youth Cohort of the National Longitudinal Surveys of Labor Market Behavior (NLS Youth) database to examine the effects of vocational education on handicapped individuals. During the study, researchers examined the labor market experiences of 73 handicapped youths who manifested a self-reported limiting health condition, showed four or more credits labeled Educable Mentally Retarded on their high school transcripts, and participated in individualized education programs (IEPs). While such a small sample prevented any firm conclusion on the earnings of handicapped persons, the evidence that is available suggests that handicapped vocational graduates had a higher rate of labor force participation, a higher employment rate, and a lower unemployment rate than did their handicapped nonvocational peers. Based on the study, the NLS Youth database appears to be less than ideal for studying the benefits of vocational education for handicapped persons. In order to study this issue at a national level, a new survey or additional questions on future NLS Youth surveys are needed to investigate handicapped individuals' labor market experiences. Appended to the report are an annotated bibliography and an orientation plan to use the NLS database to examine the labor market experiences of handicapped youth. (MN)