HASTE MAKES WASTE: MEASURING THE ECONOMIC COSTS OF SPEED AND QUALITY TRADE-OFFS IN FRESH FRUIT PRODUCTION

We have four objectives for thisproject:Objective 1: Does Haste Make Waste? Quantify the speed and quality trade-off using observational data.The aim of objective 1 is to quantify the speed and quality trade-off using two seasons of already collected data provided by the participatinggrower. We propose estimating speed-quality elasticities using an IV approach and linked data on worker speed and quality.Objective 2: Direct Quality Incentives. Estimate speed and quality effects of paying workers for quality.The aim of objective 2 is to estimate the effects of quality incentive payments on both speed and quality. This objective requires real time monitoring of our quasi-experimental intervention consisting of paying a treatment group of harvesters different forms of a quality bonus over 3 growing seasons.Objective 3: Refusals. Quantify the value of quality in terms of the marginal effect of quality on the probability of shipment refusals.The aim of objective 3 is to quantify the short-term value of quality to growers. To do so we will link our data on quality with sales data provided by the retailer to estimate the effect of quality on the likelihood a shipment is rejected. We will then use the cost associated with each rejection to quantify the marginal cost of quality.Objective 4: Optimal Payment Structures. Use results from objectives 1- 3 to determine optimal payment schemes and pay rates.The aim of objective 4 is to use results from objectives 1 and 3 to estimate the short-run financial impacts of piece rate increases, and alternative payment structures (i.e. quality incentive payments)for employers in a variety of agricultural settings.