%0 Report %A Dur, Robert %A Non, Arjan %A Roelfsema, Hein %T Reciprocity and Incentive Pay in the Workplace %D 2010 %8 2010 Feb %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 4782 %U https://www.iza.org/index.php/publications/dp4782 %X We study optimal incentive contracts for workers who are reciprocal to management attention. When neither worker's effort nor manager's attention can be contracted, a double moral-hazard problem arises, implying that reciprocal workers should be given weak financial incentives. In a multiple-agent setting, this problem can be resolved using promotion incentives. We empirically examine these predictions using data from the German Socio-Economic Panel. We find that workers who are more reciprocal are significantly more likely to receive promotion incentives, while there is no such relation for individual bonus pay. %K double moral hazard %K GSOEP %K social exchange %K reciprocity %K incentive contracts