This investigation at a southern Texas school district examined three factors that bear on teachers' decisions to recommend first- and second-grade students for retention: (1) criteria used by teachers, (2) degree to which criteria are common among teachers, and (3) relationship of recommendations for promotion or retention to objective measures of student achievement. Teachers were interviewed concerning their retention recommendations, and standardized reading achievement test scores of students recommended for retention were compared with those of "borderline" students considered for retention, but promoted. Results indicate three major factors in teachers' decisions to retain or promote students: (1) noncompletion of primer, (2) immaturity, and (3) anticipated parental resistance. No significant differences were found between reading achievement test scores for those recommended and for those only considered for retention. The suggestion is made that standard criteria based on objective measures of student progress would introduce more rationality and equity in the decision-making process. A seven-item list of references is appended. (TE)