Data froma field experiment are used ot estimate the gain in productivit that is realized when workers are paid piece rates rather than fixed wages.The experiment was conducted within a tree-planting firm and provides daily observations on individual worker productivity under both compensation systems.Uncrestricted statistical methods estimate the productivity gain to be 20(percnet).Since planting ocnditiosn potentially affect incentives,structural econometric methods are used to generalize the experimental results to out-of-sample conditions.The structural results susggest that the average productivity gain,outside of the experimental conditions,would be at least 21.7(percent).
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