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Social Interaction, Co-Worker Altruism, and Incentives

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  • Robert Dur

    ()
    (Erasmus University Rotterdam, CESifo, and IZA)

  • Joeri Sol

    ()
    (Erasmus University Rotterdam)

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.

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File URL: http://papers.tinbergen.nl/08094.pdf
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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 08-094/1.

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Date of creation: 02 Oct 2008
Date of revision: 03 Aug 2009
Handle: RePEc:dgr:uvatin:20080094

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Web page: http://www.tinbergen.nl

Related research

Keywords: social interaction; altruism; incentive contracts; co-worker satisfaction;

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References

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