Early evidence on California's Class Size Reduction (CSR) Program suggests that teacher applicant pools have been depleted and that many teachers who lack experience and credentials were hired. To examine the impact of CSR, a study analyzed whether the experience and qualifications of teachers in reduced-size classes vary across schools and, if so, whether it is possible to identify school characteristics that might account for the variation. The results of the study indicate that teachers in reduced-size classes were less experienced and less qualified than their district counterparts. Schools with higher percentages of Latino students tended to have reduced-size-class teachers with less overall teaching experience and less experience in their current districts. Schools that had a difficult time attracting qualified teachers to begin with were forced to compete for teachers in a severely reduced market. These schools also faced the problem of experienced teachers leaving their schools for more desirable locations. The study cautions policymakers as they consider future actions and suggests the need for further studies employing statewide samples and using a broader range of teacher quality measures to track the movement of teachers across schools and districts. (Contains 5 tables and 11 references.) (RJM)