Wage Dispersion and Team Performance - An Empirical Panel Analysis
The impact of intra-team pay dispersion on team productivity is a highly discussed issue. On one hand, wage differentials provide incentives for higher employee effort. On the other hand, pay inequality discourages cooperation among team members, which reduces performance. Analyzing non-linear effects of wage dispersion in professional team sports, we find empirical evidence that an initial increase of intra-team inequity reduces team performance, but at some point the relation reverses. In addition, we show that the pay structure of a team clearly affects the teamÕs playing style.
|Date of creation:||2007|
|Date of revision:|
|Contact details of provider:|| Postal: Plattenstrasse 14, CH-8032 Zürich|
Phone: ++41 1 634 29 27
Fax: ++41 1 634 43 48
Web page: http://www.crsa.uzh.ch
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Christian Grund & Niels Westergaard-Nielsen, 2005.
"The Dispersion of Employees' Wage Increases and Firm Performance,"
Bonn Econ Discussion Papers
bgse3_2005, University of Bonn, Germany.
- Christian Grund & Niels Westergaard-Nielsen, 2008. "The Dispersion of Employees' Wage Increases and Firm Performance," ILR Review, Cornell University, ILR School, vol. 61(4), pages 485-501, July.
- Grund, Christian & Westergård-Nielsen, Niels C., 2004. "The Dispersion of Employees’ Wage Increases and Firm Performance," IZA Discussion Papers 1402, Institute for the Study of Labor (IZA).
- Alexandre Mas, 2006.
"Pay, Reference Points, and Police Performance,"
NBER Working Papers
12202, National Bureau of Economic Research, Inc.
- P. B. Beaumont & R. I. D. Harris, 2003. "Internal Wage Structures and Organizational Performance," British Journal of Industrial Relations, London School of Economics, vol. 41(1), pages 53-70, 03.
- Drago, Robert & Garvey, Gerald T, 1998. "Incentives for Helping on the Job: Theory and Evidence," Journal of Labor Economics, University of Chicago Press, vol. 16(1), pages 1-25, January.
- Hibbs, Douglas A, Jr & Locking, Hakan, 2000.
"Wage Dispersion and Productive Efficiency: Evidence for Sweden,"
Journal of Labor Economics,
University of Chicago Press, vol. 18(4), pages 755-82, October.
- Hibbs Jr., Douglas A. & Locking, Håkan, 2000. "Wage Dispersion and Productive Efficiency: Evidence For Sweden," Working Papers in Economics 21, University of Gothenburg, Department of Economics.
- Winter-Ebmer, Rudolf & Zweimüller, Josef, 1997.
"Intra-firm Wage Dispersion and Firm Performance,"
CEPR Discussion Papers
1621, C.E.P.R. Discussion Papers.
- Paul, Satya, 1991. "An index of relative deprivation," Economics Letters, Elsevier, vol. 36(3), pages 337-341.
- DepkenII, Craig A., 2000. "Wage disparity and team productivity: evidence from major league baseball," Economics Letters, Elsevier, vol. 67(1), pages 87-92, April.
- J. A. Hausman, 1976.
"Specification Tests in Econometrics,"
185, Massachusetts Institute of Technology (MIT), Department of Economics.
- R. Todd jewell & David J. Molina, 2004. "Productive Efficiency and Salary Distribution: The Case of US Major League Baseball," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(1), pages 127-142, 02.
- François Rycx & Thierry Lallemand & Robert Plasman, 2004.
"Intra-firm wage dispersion and firm performance: evidence from linked employer-employee data,"
ULB Institutional Repository
2013/781, ULB -- Universite Libre de Bruxelles.
- Thierry Lallemand & Robert Plasman & François Rycx, 2004. "Intra-Firm Wage Dispersion and Firm Performance: Evidence from Linked Employer-Employee Data," Kyklos, Wiley Blackwell, vol. 57(4), pages 533-558, November.
- Heyman, Fredrik, 2002.
"Pay Inequality and Firm Performance: Evidence from Matched Employer-Employee Data,"
Working Paper Series
186, Trade Union Institute for Economic Research.
- Fredrik Heyman, 2005. "Pay inequality and firm performance: evidence from matched employer-employee data," Applied Economics, Taylor & Francis Journals, vol. 37(11), pages 1313-1327.
- Lazear, Edward P, 1989. "Pay Equality and Industrial Politics," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 561-80, June.
- Podder, Nripesh, 1996. "Relative Deprivation, Envy and Economic Inequality," Kyklos, Wiley Blackwell, vol. 49(3), pages 353-76.
- Main, Brian G M & O'Reilly, Charles A, III & Wade, James, 1993. "Top Executive Pay: Tournament or Teamwork?," Journal of Labor Economics, University of Chicago Press, vol. 11(4), pages 606-28, October.
- 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.
- repec:sae:ilrrev:v:43:y:1990:i:3:p:13-29 is not listed on IDEAS
- John D. Hey & Peter J. Lambert, 1980. "Relative Deprivation and the Gini Coefficient: Comment," The Quarterly Journal of Economics, Oxford University Press, vol. 95(3), pages 567-573.
- Levine, David, 1989.
"Cohesiveness, Productivity, and Wage Dispersion,"
Institute for Research on Labor and Employment, Working Paper Series
qt8kd4d0p4, Institute of Industrial Relations, UC Berkeley.
- Paul, Satya, 1999. "Relative Deprivation, Envy and Economic Inequality: A Comment," Kyklos, Wiley Blackwell, vol. 52(3), pages 441-48.
- Ekaterini Kyriazidou, 1997. "Estimation of a Panel Data Sample Selection Model," Econometrica, Econometric Society, vol. 65(6), pages 1335-1364, November.
- Benno Torgler & Sascha Schmidt, 2005.
"What Shapes Players? Performance in Soccer? Empirical Findings from a Panel Analysis,"
CREMA Working Paper Series
2005-25, Center for Research in Economics, Management and the Arts (CREMA), revised Jan 2006.
- Benno Torgler & Sascha Schmidt, 2007. "What shapes player performance in soccer? Empirical findings from a panel analysis," Applied Economics, Taylor & Francis Journals, vol. 39(18), pages 2355-2369.
- Uwe Jirjahn & Kornelius Kraft, 2007. "Intra-firm Wage Dispersion and Firm Performance - Is There a Uniform Relationship?," Kyklos, Wiley Blackwell, vol. 60(2), pages 231-253, 05.
- 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.
- Bingley, Paul & Eriksson, Tor, 2001.
"Pay Spread and Skewness, Employee Effort and Firm Productivity,"
01-2, University of Aarhus, Aarhus School of Business, Department of Economics.
- Bingley, P. & Eriksson, T, 2001. "Pay Spread and Skewness. Employee Effort and Firm Productivity," Papers 01-2, Aarhus School of Business - Department of Economics.
- Lawrence M. Kahn, 2000. "The Sports Business as a Labor Market Laboratory," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 75-94, Summer.
- Eriksson, Tor, 1999. "Executive Compensation and Tournament Theory: Empirical Tests on Danish Data," Journal of Labor Economics, University of Chicago Press, vol. 17(2), pages 262-80, April.
- Shlomo Yitzhaki, 1979. "Relative Deprivation and the Gini Coefficient," The Quarterly Journal of Economics, Oxford University Press, vol. 93(2), pages 321-324.
- 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.
- Donald Richards & Robert Guell, 1998. "Baseball success and the structure of salaries," Applied Economics Letters, Taylor & Francis Journals, vol. 5(5), pages 291-296.
When requesting a correction, please mention this item's handle: RePEc:rsd:wpaper:0017. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (IBW IT Support)
If references are entirely missing, you can add them using this form.