http://www.triplepundit.com/2011/11/curbside-recycling-preventing-market-failure/
Article from Nov. 2011 with good statistics. Top of article is good, bottom is about San Francisco which has a pay as you throw deal—expensive—to acheive their recycling rate.
Looks like it is working in those cities.
In my area everyting is separated and most of it goes to the landfull. all those milk bottles and returnables go to the burner. nothing is recycled.