Siesta: A Theory of Freelancing

University of Zurich Department of Economics Working Paper No. 55

20 Pages Posted: 17 Dec 2011

Date Written: December 1, 2011

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 heterogeneous agents, the problem may be ameliorated by the introduction of a dual labor market with free-lancers (who can take breaks at their discretion) and regular workers (who work on a fixed schedule).

Keywords: Breaks, leisure, productivity, freelancing

JEL Classification: D0, D8, D9, M51, M55

Suggested Citation

Saez-Marti, Maria, Siesta: A Theory of Freelancing (December 1, 2011). University of Zurich Department of Economics Working Paper No. 55, Available at SSRN: https://ssrn.com/abstract=1973532 or http://dx.doi.org/10.2139/ssrn.1973532

Maria Saez-Marti (Contact Author)

Stockholm School of Economics ( email )

P.O. Box 6501
Sveavagen 65
S-113 83 Stockholm
Sweden
46-8-7369270 (Phone)
46-8-313207 (Fax)

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