Research has shown that for teachers, job satisfaction is related more to intrinsic rewards than to the external conditions of their employment. However, the coping strategies for teachers' stress and recommendations for reforms in education address the teachers' external environment and offer extrinsic rewards. Positive mental health variables such as positive affect, dispositional optimism, and self-esteem have been shown to be related to intrinsic motivation, coping with unavoidable stress, and increased job involvement. Positive affect is related to extraversion, satisfaction, and subjective well-being. Individuals high in positive affect tend to form positive impressions of others and to make positive judgments about others. For individuals high in positive affect, increases in stress do not necessarily diminish feelings of energy, excitement, and enthusiasm. Dispositional optimism promotes problem focused coping and the seeking of social support, which buffers the effects of stress. Teachers high in self-esteem have high aspirations and expectations for themselves and their students. Some researchers feel that high levels of self-esteem are a basic requirement for effective teaching. Recent studies revealed that self-esteem provides an internal source that helps the individual cope with stress, and suggests that the life affirming constructs can be developed and enhanced in individuals. Sixty four references, 4 tables and 2 figures are attached. (LLL)