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Raising salary or redistributing it: A panel analysis of Major League Baseball

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  • Jane, Wen-Jhan

Abstract

Using data in Major League Baseball (MLB), this article conducts Panel Granger Causality tests for teams' salary structures and corresponding performance. The results show that a reliable way to enhance performance is to compress salaries rather than to enlarge the payroll.

Suggested Citation

  • Jane, Wen-Jhan, 2010. "Raising salary or redistributing it: A panel analysis of Major League Baseball," Economics Letters, Elsevier, vol. 107(2), pages 297-299, May.
    • Handle: RePEc:eee:ecolet:v:107:y:2010:i:2:p:297-299
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    1. repec:ver:wpaper:12/2012 is not listed on IDEAS
    2. Robert Breunig & Bronwyn Garrett-Rumba & Mathieu Jardin & Yvon Rocaboy, 2014. "Wage dispersion and team performance: a theoretical model and evidence from baseball," Applied Economics, Taylor & Francis Journals, vol. 46(3), pages 271-281, January.
    3. Tao, Yu-Li & Chuang, Hwei-Lin & Lin, Eric S., 2016. "Compensation and performance in Major League Baseball: Evidence from salary dispersion and team performance," International Review of Economics & Finance, Elsevier, vol. 43(C), pages 151-159.
    4. Deepak Srivastav & Puram Praveen & Rudra Sensarma & Anand Gurumurthy, 2021. "Does salary dispersion affect team performance in cricket? Evidence from the Indian Premier League," Working papers 441, Indian Institute of Management Kozhikode.
    5. Thomas M. Fullerton & James T. Peach, 2016. "Major League Baseball 2015, What a Difference a Year Makes," Applied Economics Letters, Taylor & Francis Journals, vol. 23(18), pages 1289-1293, December.
    6. Kniffin, Kevin M. & Mihalek, Vince, 2014. "Within-series momentum in hockey: No returns for running up the score," Economics Letters, Elsevier, vol. 122(3), pages 400-402.
    7. Wen-Jhan Jane, 2013. "Overpayment and Reservation Salary in the Nippon Professional Baseball League," Journal of Sports Economics, , vol. 14(6), pages 563-583, December.
    8. Le Maux, Benoit & Rocaboy, Yvon, 2012. "A simple microfoundation for the utilization of fragmentation indexes to measure the performance of a team," Economics Letters, Elsevier, vol. 116(3), pages 491-493.
    9. Xing Lu & Jason Matthews & Miao Wang & Hong Zhuang, 2018. "Team payroll, pitcher and hitter payrolls and team performance: Evidence from the U.S. Major League Baseball," Economics and Business Letters, Oviedo University Press, vol. 7(2), pages 62-69.
    10. Liao, Pei-An & Zheng, Yun-Lin & Jane, Wen-Jhan, 2023. "Home Court Advantage and Referee Bias: Evidence from NBA Games Amid the COVID-19 Pandemic," Asian Journal of Applied Economics, Kasetsart University, Center for Applied Economics Research, vol. 30(2), July.
    11. Rachel Scarfe & Carl Singleton & Adesola Sunmoni & Paul Telemo, 2024. "The age‐wage‐productivity puzzle: Evidence from the careers of top earners," Economic Inquiry, Western Economic Association International, vol. 62(2), pages 584-606, April.
    12. Alessandro Bucciol & Marco Piovesan, 2012. "Pay Dispersion and Work Performance," Harvard Business School Working Papers 12-075, Harvard Business School.
    13. Jye-Shyan Wang & Chih-Fu Cheng & Wen-Jhan Jane, 2014. "Buying success or redistributing payment: bidirectional causality in Korean Professional Baseball League," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 4(2), pages 247-260, December.
    14. 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.
    15. Yuan-Lin Hsu & Wen-Jhan Jane, 2016. "Bidirectional Causality for Word of Mouth and the Movie Box Office: An Empirical Investigation of Panel Data," Journal of Media Economics, Taylor & Francis Journals, vol. 29(3), pages 139-152, July.
    16. 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.

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