TY - RPRT AU - Dur, Robert AU - Non, Arjan AU - Roelfsema, Hein TI - Reciprocity and Incentive Pay in the Workplace PY - 2010/Feb/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 4782 UR - https://www.iza.org/index.php/publications/dp4782 AB - 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. KW - double moral hazard KW - GSOEP KW - social exchange KW - reciprocity KW - incentive contracts ER -