Two reported effects of the labeling process in special education were investigated in a study which assessed the self-concepts of 48 learning-disabled (LD) children, 54 of their normal age-mates, and 16 regular class students whose teachers indicated the need for special education services. In addition, the mothers of children in each group were asked to complete the same self-concept instrument, responding to the items as they predicted their children would respond. Self-concepts of the children groups were compared to test the hypothesis that labeling and segregating the educationally handicapped from the larger school population might reduce self-regard. Mothers' self-concept predictions were compared to the scores of their LD children to test the hypothesis that labeling a child may reduce parents' perceptions of the child's feelings of self-worth. Predictions made by mothers of normal children were used to assess the accuracy of prediction across the parenting groups. The results gleaned from mothers of low-achieving, regular-class students were used as a method of control in case of a possibility that parental predictions were influenced more by the child's achievement than by special education placement. Equivalence of self-concept across the regular and special-class children groups was interpreted through social comparison theory and the possibility that reduced heterogeneity of ability evident in special classes may bolster the self-concept of children educated in such environments. The lowered estimates of self-concept generated by mothers of LD students were discussed as an indirect effect of the labeling process whereby the label alters the perceptions of significant others as to the abilities of the labeled individual.T here are numerous references in the special education literature as to the detrimental effects of labeling and special-class placement (Blatt, 1972;Dunn, 1968;Haywood, 1971;Johnston, 1969;Jones, 1972). The most frequent charge is that applying labels (such as mentally retarded or learning disabled) to children and segregating them from the larger school population results in stigmatization and concomitant reduction of self-concept (Guskin, Bartel, & MacMillan, 1975; MacMillan, Jones, & Aloia, 1974). This concern for the special-class child's self-concept, admittedly paired with the realization that special-class placement has little impact on academic gains (Dunn, 1968;Johnson, 1962), has served as an impetus for the adoption of "mainstreaming" as the most efficacious organizational strategy for educating mildly handicapped children.Yet, little evidence has surfaced to indicate that labeling and special-class placement have a detrimental effect on the self-concepts of special education children. As MacMillian, Jones, and Aloia (1974) report, "In searching the empirical literature for evidence, one encounters few studies on labeling, and what data are available tend to be anything but conclusive. Nevertheless, the position of most special educators seems to be that labeling has a det...