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The increased use of youth diversion in Canada came upon enactment of the Youth Criminal Justice Act in 2003. This statute attempts to limit court intervention and increase fairness and accountability for youth committing minor offences. Despite perceived benefits, diversion has not escaped criticism. Participation in diversion programs largely depends on police discretion. As a result, some contend that these programs suffer from selection bias. Are there differences in the youth who are selected for diversion compared to youth who are processed through the court system? Research has shown that diversion programs are no more effective than simple cautions and may thus be used as a coercive tool to expand the number of youth involved in the justice system. Have diversion programs reduced the number of youth warned or cautioned by the police? Using police data from a large police service in southern Ontario, this paper examines whether the personal characteristics of youth (age, gender, race, social class, area of residence, etc.) have an impact on police decisions to charge or divert youth from the formal justice system for minor drug possession and theft. Overall the results provide limited support for the labelling perspective.