Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/77595 
Year of Publication: 
2011
Series/Report no.: 
Working Paper No. 55
Publisher: 
University of Zurich, Department of Economics, Zurich
Abstract: 
I study the effect of fatigue and innate ability on performance in a model with incomplete contracts, lumpy tasks requiring multiple periods of work and stochastic productivity shocks. I find that increasing ability or reducing fatigue does not lead necessarily to more productive efficiency, since it may exacerbate the incentive for agents take too much on-the-job leisure. In a world with heterogenous agents, the problem may be ameliorated by the introduction of a dual labour market with freelancers (who can take breaks at their discretion) and regular workers (who work on a fixed schedule).
Subjects: 
breaks
leisure
productivity
freelancing
JEL: 
D0
D8
D9
M51
M55
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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