The purpose of this research is to evaluate the effects of government training program on trainees and to analyze the determinants of income inequality . Special attention is paid to selection bias in this analysis, and the study will develop a theoretical foundation for developing estimating models that take into account this bias. The research will include three empirical studies utilizing these models. The first will use recently available experimental and non-experimental data to evaluate the impacts of the leading Federal manpower training program--the Job Training Partnership Act. The objective of this study is to ascertain the determinants of program awareness among the eligible population, the determinants of application, enrollment, placement, and long-run labor outcomes of the program. This study will present new insights about the effectiveness of the job training program. The second study will examine the effects of randomization in evaluating social programs. Finally, the third part will investigate the sources of wage inequality utilizing new methods for measuring inequality. This research is important because it will develop new methods for evaluating social programs, and it will provide new insights about the problem of income inequality.