Pay dispersion and productivity in sports

Leo Kahane ()

Chapter 7 in Personnel Economics in Sports, 2018, pp 136-167 from Edward Elgar Publishing

Abstract: Two competing theories related to pay dispersion – the tournament model versus the fairness model – are contrasted. The empirical work examines pay dispersion in the National Hockey League in the three seasons just prior to, and the three seasons just after, the 2004–2005 season-long work stoppage which ultimately resulted in a collective bargaining agreement that drastically compressed salaries in the league. The results lend strong support for the fairness model, meaning that lower within-team pay disparities results in, all else equal, higher team performance

Keywords: Economics and Finance (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (1)

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