A BEJM Topics article.

Abstract

I study the dynamics of shiftwork when the demand for the output of the firm is stochastic and adjusting the number of shifts entails irreversible costs. The analysis reveals the existence of a gap between the level of demand that triggers activation of a shift and the level of demand that triggers shutting it off. The higher the uncertainty about future demand, the wider this gap. I also analyze in detail the pro-cyclical labor productivity created by the use of shiftwork.

Submitted: July 25, 2002 · Accepted: June 12, 2003 · Published: June 16, 2003

Originally published in Topics in Macroeconomics.

Recommended Citation

Maoz, Yishay D. (2003) "Shiftwork, Adjustment Costs and Uncertainty," Topics in Macroeconomics: Vol. 3 : Iss. 1, Article 7.
Available at: http://www.bepress.com/bejm/topics/vol3/iss1/art7