Why do workers spend so much time on inferior tasks?

This paper explains why agencies sometimes encourage their ablest workers t o perform an inferior task. I develop a model in which workers' outputs in terms of the stated goal of the agency are surrounded with uncertainty. Whe n workers are evaluated on the basis of their contributions to the stated g oal of the agency, a high ability worker runs the risk of being perceived a s a low ability worker. High ability workers are only willing to work for t he agency if they are compensated for this risk. To avoid compensation the agency may allow workers to perform a measurable, bur inferior, task.