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Siesta: A theory of freelancing

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  • Maria Saez Marti

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 free-lancers (who can take breaks at their discretion) and regular workers (who work on a fixed schedule).

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Bibliographic Info

Paper provided by Department of Economics - University of Zurich in its series ECON - Working Papers with number 055.

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Date of creation: Dec 2011
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Handle: RePEc:zur:econwp:055

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Keywords: Breaks; leisure; productivity; freelancing;

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