A few years back, American Spectator Magazine had an article about recycling. What the author of the piece found out was that a lot of the trash hauling contractors pay lip service to recycling when they deal with municipalities. When the recycled goods go down the road to wherever that stuff gets centralized, its often centralized into the same hole in the ground as your other household garbage.
I was watching the recycling truck recently from an upstairs window. The guy jumped out of the cab, grabbed our orange bin containing newspaper, tin cans, plastic containers (only #2), looked around presumably to assure no witnesses, and threw it all into one of the sections on the truck.