Document Type
Discussion Paper
Publication Date
5-5-2025
CFDP Number
2268R1
CFDP Pages
20
Journal of Economic Literature (JEL) Code(s)
D13, J22, D86, M54.
Abstract
I propose a model in which workers experience fatigue over time and can restore productivity by taking breaks. Optimal schedules feature evenly spaced, full-recovery breaks; when breaks are costless, they should occur frequently, but switching costs make the optimal number finite. The model is embedded in a principal-agent framework with contractual frictions. When employers control the schedule, workers overwork; when workers self-manage, they overrest. Both lead to inefficiencies. These results shed light on the trade-offs in remote work arrangements, especially following COVID-19. The analysis highlights how control rights, incentive design, and recovery constraints interact—and why neither rigid supervision nor full autonomy guarantees efficiency.
Recommended Citation
Sáez Martí, María, "Take a Break: A Model of Fatigue, Recovery, and the Economics of Remote Work" (2025). Cowles Foundation Discussion Papers. 2857.
https://elischolar.library.yale.edu/cowles-discussion-paper-series/2857