The next three questions refer to the following information….
The next three questions refer to the following information. Safelite is a windshield repair company. If your windshield breaks, they send a technician to fix your windshield. Safelight used to pay its technicians a fixed hourly wage of $25/hour, regardless of the number of windshields they fixed. However they thought their technicians would work harder if they were instead paid $50 per windshield replaced. This is called a piece rate contract. Safelite wanted to test this idea, but the union would not let them change everyone’s pay. So to test their idea, they ran experiment where workers were randomly assigned to a control group or a treatment group. For the control group, there was no change to pay. For the treatment group, workers could choose whether they wanted the fixed hourly wage contract or the piece rate contract.