TY - RPRT AU - Dur, Robert AU - Sol, Joeri TI - Social Interaction, Co-Worker Altruism, and Incentives PY - 2009/Oct/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 4532 UR - https://www.iza.org/index.php/publications/dp4532 AB - 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. KW - incentive contracts KW - altruism KW - social interaction KW - co-worker satisfaction ER -