Residential youth care settings should provide youth with safe environments where they are supported and treated. However, there are aspects of residential youth care that threaten its effectiveness, and which may also violate children’s rights. Staff members exercise power over the youth, which can …

We study the relation between formal incentives and social exchange in organizations where employees work for several managers and reciprocate a manager’s attention with higher effort. To this end we develop a common agency model with two-sided moral hazard. We show that when management attention is …