Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2008-10-02
Revision-Date: 2009-08-03
Number: 08-094/1
Author-Name: Robert Dur
Author-Email: dur@few.eur.nl
Author-Workplace-Name: Erasmus University Rotterdam, CESifo, and IZA
Author-Name: Joeri Sol
Author-Email: sol@few.eur.nl
Author-Workplace-Name: Erasmus University Rotterdam
Title: Social Interaction, Co-Worker Altruism, and Incentives
Abstract: Social interaction with colleagues is an important job attribute for many workers. To attract and retain workers, managers therefore need to think about how to create and preserve high-quality co-worker relationships. This paper develops a principal-multi-agent model where agents do not only engage in productive activities, but also in social interaction with their colleagues, which in turn creates co-worker altruism. We study how financial incentives for productive activities can improve or damage the work climate. We show that both team incentives and relative incentives can help to create a good work climate. We discuss some empirical evidence supporting these predictions.
Classification-JEL: D86, J41, M50
Keywords: social interaction, altruism, incentive contracts, co-worker satisfaction
File-Url: https://papers.tinbergen.nl/08094.pdf
File-Format: application/pdf
File-Size: 239754 bytes
Handle: RePEc:tin:wpaper:20080094