The multifactor account of the generation effect makes detailed predictions about the effects of generation on item-specific and relational encoding, predictions confirmed in four experiments using a multiple-test methodology. In pure-list designs with unrelated study items, generation produced more interest item gains (indexing greater item-specific processing) and more interest item losses (indexing less relational processing) relative to the read condition. In a mixed-list design, generation produced more gains but did not affect losses. With categorically-related study items, generation produced more gains but fewer losses (indicating enhanced relational encoding). Generation consistently produced hypermnesia whereas reading did so only for related study items. Also, a significant generation effect emerged on later tests under conditions (between-subjects design, unrelated study items) which typically yield no generation effect.