This report presents findings of a demonstration project that tested the concepts and applications of linking student records using social security numbers with state unemployment insurance (UI) wage and other data sources. It also contains information of value to policymakers, state and local administrators, practitioners, and consumers of postsecondary vocational education. Chapter I explores the value of wage data sources in examining trends regarding former students in the workplace. Chapter II provides the historical perspective and looks at the changing legislative environment and factors influencing the use of state UI wage data. Chapter III identifies needs of various audiences for employment and earnings information. Chapter IV describes concepts tested by the demonstration project as well as the data sources and elements used. Chapter V presents findings from the two-state demonstration to illustrate how wage data can be used and presented. Chapter VI provides a profile of the strength of the longitudinal perspective. Chapter VII discusses five steps for state implementation of a system to link school-based information with state UI and other state and federal wage data records: (1) plan and determine data priorities, (2) identify state and federal administrative data sources, (3) make data collection decisions, (4) develop data processing procedures, and (5) conduct data analysis. Appendixes include 91 endnotes and a discussion of the differences between outcome measures and performance standards. (YLB)