Discussion paper

DP19307 Clerks

We study the optimal dynamic scheduling of workers to tasks when task-completion is privately observed (hence, workers can delay the release of completed tasks), and when idle time is the only means of providing incentives. Our main result characterizes a scheduling rule, and the equilibrium it induces, maximizing the expected discounted output subject to workers' incentive constraints. When workers are inherently slow, a simple rotation scheme suffices to attain first-best output, but when they are more productive, optimal scheduling alternates between phases with and without delay. Our analysis highlights a trade-off between the quality and size of workforce.

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Citation

Eliaz, K, D Fershtman and A Frug (2024), ‘DP19307 Clerks‘, CEPR Discussion Paper No. 19307. CEPR Press, Paris & London. https://cepr.org/publications/dp19307