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Pay Dispersion and Performance in Teams

Author

Listed:
  • Alessandro Bucciol
  • Nicolai J Foss
  • Marco Piovesan

Abstract

Extant research offers conflicting predictions about the effect of pay dispersion on team performance. We collected a unique dataset from the Italian soccer league to study the effect of intra-firm pay dispersion on team performance, under different definitions of what constitutes a “team”. This peculiarity of our dataset can explain the conflicting evidence. Indeed, we also find positive, null, and negative effects of pay dispersion on team performance, using the same data but different definitions of team. Our results show that when the team is considered to consist of only the members who directly contribute to the outcome, high pay dispersion has a detrimental impact on team performance. Enlarging the definition of the team causes this effect to disappear or even change direction. Finally, we find that the detrimental effect of pay dispersion is due to worse individual performance, rather than a reduction of team cooperation.

Suggested Citation

  • Alessandro Bucciol & Nicolai J Foss & Marco Piovesan, 2014. "Pay Dispersion and Performance in Teams," PLOS ONE, Public Library of Science, vol. 9(11), pages 1-16, November.
    • Handle: RePEc:plo:pone00:0112631
    DOI: 10.1371/journal.pone.0112631
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    References listed on IDEAS

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    Cited by:

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    2. Raul Caruso & Marco Di Domizio & Domenico Rossignoli, 2017. "Aggregate wages of players and performance in Italian Serie A," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 34(3), pages 515-531, December.
    3. Alessandro Bucciol & Alessio Hu & Luca Zarri, 2017. "The Effects of Prior Shocks on Managerial Risk Taking: Evidence from Italian Professional Soccer," Working Papers 17/2017, University of Verona, Department of Economics.
    4. Caruso, Raul & Carlo, Bellavite Pellegrini & Marco, Di Domizio, 2016. "Does diversity in the payroll affect soccer teams’ performance? Evidence from the Italian Serie A," MPRA Paper 75644, University Library of Munich, Germany.
    5. Avner Ben-Ner & John-Gabriel Licht & Jin Park, 2017. "Bifurcated Effects of Place-of-Origin Diversity on Individual and Team Performance: Evidence from Ten Seasons of German Soccer," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 56(4), pages 555-604, October.
    6. Carlo Bellavite Pellegrini & Raul Caruso & Marco Di Domizio, 2021. "Relative wages, payroll structure and performance in soccer. Evidence from Italian Serie A (2007-2019)," DISCE - Quaderni del Dipartimento di Politica Economica dipe0015, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    7. M. Todd Royle, 2017. "The Mediating Effect Of Felt Accountability On The Relationship Between Personality And Job Satisfaction," International Journal of Management and Marketing Research, The Institute for Business and Finance Research, vol. 10(1), pages 19-44.
    8. Marco Di Domizio & Carlo Bellavite Pellegrini & Raul Caruso, 2022. "Payroll dispersion and performance in soccer: A seasonal perspective analysis for Italian Serie A (2007–2021)," Contemporary Economic Policy, Western Economic Association International, vol. 40(3), pages 513-525, July.
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