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Die Auswirkungen von Neid auf individuelle Leistungen: Ergebnisse einer Panelanalyse

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  • Sascha L. Schmidt
  • Benno Torgler
  • Bruno S. Frey

Abstract

Relative income differences are likely to lead to envy within a reference group. Envy in turn influences social behavior and on individual performance. While positional concerns are apparent in daily life, empirical evidence is rare in the economic literature. This paper investigates the impact of the relative income position on individuals? performance or productivity. As ?performance? is difficult to measure we turn to soccer players whose performance has been well documented. The broad sample covers eight seasons of the German premier soccer league (Bundesliga) between 1995/1996 and 2003/2004, and includes 1040 players, a salary proxy and several performance variables. The results show that player performance is strongly affected by relative income position. A disadvantage in the relative income position reduces productivity. The larger the income differences within a team, the stronger are the effects of positional concern. Team composition also significantly affects behaviour.

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Bibliographic Info

Paper provided by Center for Research in Economics, Management and the Arts (CREMA) in its series CREMA Working Paper Series with number 2006-28.

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Date of creation: Nov 2006
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Handle: RePEc:cra:wpaper:2006-28

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Keywords: Relative income; positional concerns; envy; performance; income inequality;

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