Comparative motivational studies of middle class and lower class children show that different economic and ethnic groups vary in their reward-punishment systems. Teachers should have a systematic theory of the working of reward and punishment in learning. Their theory should include the concept of a hierarchy of reward levels, and they should understand what levels of reward are working in their class. Teachers should help a student develop his ego, or internal control, as a controller and rewarder of his behavior. Order and consistency in the class room situation and individualized instruction help strengthen ego control. Students need to learn to predict their own learning in relation to their effort to learn. A successful program should let students know what their responsibilities are, participate in making decisions about their work and give them accurate information on their progress. This theory as applicable to disadvantaged students is discussed in the report. [Not available in hard copy due to marginal legibility of original document.] (KG)