We characterize the optimal job design in a multitasking environment when the firms rely on implicit incentive contracts (i.e., bonus payments). Two natural forms of job design are compared: (i) individual accountability, where each agent is assigned to a particular job and assumes full...

We highlight a novel trade-off with the use of break-up fees in employment contracts in the presence of firm-specific matching gains and asymmetric learning about workers' quality. If the market infers the workers' quality from job-assignments (or, "promotions"), it leads to inefficiently few...