A report is made of the first operating phase from March 1970 through May 1971 of a test of the feasibility of using financial incentives to stimulate more effective upgrading of the skills and earnings of low income workers in the private sector. TIPP provides incentive payments to employers based on results achieved. Program administration stresses self-administration by participating employers. Each employer taking part provides full access to his firm's experience under the program for research purposes, as a contribution to the development of more effective manpower policies and instruments by the government. (Author)