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


  • Yamamura, Eiji


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.

Suggested Citation

  • Yamamura, Eiji, 2010. "Wage disparity and team performance in the process of industry development: Evidence from Japan’s professional football league," MPRA Paper 27363, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:27363

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    References listed on IDEAS

    1. 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 841-864, October.
    2. Rosen, Sherwin, 1986. "Prizes and Incentives in Elimination Tournaments," American Economic Review, American Economic Association, vol. 76(4), pages 701-715, September.
    3. DepkenII, Craig A., 2000. "Wage disparity and team productivity: evidence from major league baseball," Economics Letters, Elsevier, vol. 67(1), pages 87-92, April.
    4. 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.
    5. Levine, David I., 1991. "Cohesiveness, productivity, and wage dispersion," Journal of Economic Behavior & Organization, Elsevier, vol. 15(2), pages 237-255, March.
    6. Donald Richards & Robert Guell, 1998. "Baseball success and the structure of salaries," Applied Economics Letters, Taylor & Francis Journals, vol. 5(5), pages 291-296.
    7. Ramaswamy, Ramana & Rowthorn, Robert E, 1991. "Efficiency Wages and Wage Dispersion," Economica, London School of Economics and Political Science, vol. 58(232), pages 501-514, November.
    8. Brandon Avrutin & Paul Sommers, 2007. "Work Incentives and Salary Distributions in Major League Baseball," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 35(4), pages 509-510, December.
    9. Paul Sommers, 1998. "Work incentives and salary distributions in the national hockey league," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 26(1), pages 119-119, March.
    10. David Berri & R. Jewell, 2004. "Wage inequality and firm performance: Professional basketball's natural experiment," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 32(2), pages 130-139, June.
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    Cited by:

    1. 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.
    2. repec:spr:epolit:v:34:y:2017:i:3:d:10.1007_s40888-017-0062-6 is not listed on IDEAS
    3. 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.
    4. 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.

    More about this item


    Wage disparity; team performance; industry development;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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