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Wage disparity and team performance in the process of industry development: Evidence from Japan’s professional football league

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  • Yamamura, Eiji

Abstract

The changing effects of wage disparity on team performance during the process of industry development are examined using data sourced from the Japanese professional football league. The results show that wage disparity leads to a reduction in team performance during the developing stage but does not influence performance during the developed stage. Unobserved fixed team effects and endogeneity bias were controlled in the study.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 27363.

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Date of creation: 07 Dec 2010
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Handle: RePEc:pra:mprapa:27363

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Keywords: Wage disparity; team performance; industry development;

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  1. Levine, David I., 1991. "Cohesiveness, productivity, and wage dispersion," Journal of Economic Behavior & Organization, Elsevier, vol. 15(2), pages 237-255, March.
  2. David Berri & R. Jewell, 2004. "Wage inequality and firm performance: Professional basketball's natural experiment," Atlantic Economic Journal, International Atlantic Economic Society, vol. 32(2), pages 130-139, June.
  3. Paul Sommers, 1998. "Work incentives and salary distributions in the national hockey league," Atlantic Economic Journal, International Atlantic Economic Society, vol. 26(1), pages 119-119, March.
  4. Ramaswamy, Ramana & Rowthorn, Robert E, 1991. "Efficiency Wages and Wage Dispersion," Economica, London School of Economics and Political Science, vol. 58(232), pages 501-14, November.
  5. Donald Richards & Robert Guell, 1998. "Baseball success and the structure of salaries," Applied Economics Letters, Taylor & Francis Journals, vol. 5(5), pages 291-296.
  6. Lazear, Edward P & Rosen, Sherwin, 1981. "Rank-Order Tournaments as Optimum Labor Contracts," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 841-64, October.
  7. Eiji Yamamura, 2009. "Technology transfer and convergence of performance: an economic study of FIFA football ranking," Applied Economics Letters, Taylor & Francis Journals, vol. 16(3), pages 261-266.
  8. Sherwin Rosen, 1985. "Prizes and Incentives in Elimination Tournaments," NBER Working Papers 1668, National Bureau of Economic Research, Inc.
  9. Brandon Avrutin & Paul Sommers, 2007. "Work Incentives and Salary Distributions in Major League Baseball," Atlantic Economic Journal, International Atlantic Economic Society, vol. 35(4), pages 509-510, December.
  10. DepkenII, Craig A., 2000. "Wage disparity and team productivity: evidence from major league baseball," Economics Letters, Elsevier, vol. 67(1), pages 87-92, April.
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Cited by:
  1. Takuma Kamada & Hajime Katayama, 2014. "Team performance and within-team salary disparity: an analysis of nippon professional baseball," Economics Bulletin, AccessEcon, vol. 34(1), pages 144-151.
  2. Yamamura, Eiji, 2013. "Emergence of a professional sports league and human capital formation for sports: The Japanese Professional Football League," MPRA Paper 44691, University Library of Munich, Germany.

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