Over half of this nation's children 5 years and under are in nonparental care while their parents work. Research indicates that children benefit from being with well-trained, consistent early care and education staff. Staff retention is crucial because frequent turnover impedes the formation of positive nurturing relationships between caregivers and children and the benefits that accompany such relationships. This study examined the relationship between wage and turnover rate in two California counties that have child-care retention incentive (CRI) programs that award stipends to caregivers. A San Mateo County non-CRI program was used as a control program. This progress report focuses on the first year of data collection (2001). Telephone surveys were used to collect data, which were subsequently analyzed statistically. Results show that CRI recipients generally had higher levels of education, were more likely to participate in training and professional development than the control group, and were more likely to be retained in their child-care centers. Providing accessible, affordable, and high-quality training for CRI recipients is essential. Areas for future research include investigating how CRI programs affect training and retention, and whether and how these programs improve the quality of care. (RT)