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Wage dispersion and team performance: evidence from the small size professional baseball league in Taiwan

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  • Gee San
  • Wen-Jhan Jane

Abstract

By using professional baseball teams in Taiwan as an example, these articles address the issue of how wage disparities affect organizational performance. Salary and performance data on 364 players on seven teams for the years 1990 through 2000 in Taiwan are collected and both fixed and random effect models together with an index to measure the intra- and inter-salary dispersion are used to investigate the effects of player's wage dispersion on the team's winning percentage, i.e. the team performance. Our empirical results show that teams with less total salary expenditures or greater wage disparity reduce the team's winning percentage and thus hinder the organizational performance.

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  • Gee San & Wen-Jhan Jane, 2008. "Wage dispersion and team performance: evidence from the small size professional baseball league in Taiwan," Applied Economics Letters, Taylor & Francis Journals, vol. 15(11), pages 883-886.
    • Handle: RePEc:taf:apeclt:v:15:y:2008:i:11:p:883-886
    DOI: 10.1080/13504850600905014
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Ferrucci, Edoardo & Lissoni, Francesco, 2019. "Foreign inventors in Europe and the United States: Diversity and Patent Quality," Research Policy, Elsevier, vol. 48(9), pages 1-1.
    3. António S. Ribeiro & Francisco Lima, 2012. "Portuguese football league efficiency and players' wages," Applied Economics Letters, Taylor & Francis Journals, vol. 19(6), pages 599-602, April.
    4. Craig A. Depken II & Lisa E. Haglund, 2011. "Peer Effects in Team Sports: Empirical Evidence From NCAA Relay Teams," Journal of Sports Economics, , vol. 12(1), pages 3-19, February.
    5. Craig A. Depken & Jeff Lureman, 2018. "Wage Disparity, Team Performance, And The 2005 Nhl Collective Bargaining Agreement," Contemporary Economic Policy, Western Economic Association International, vol. 36(1), pages 192-199, January.
    6. Fullerton, Steven L. & Fullerton, Thomas M., Jr. & Walke, Adam G., 2014. "An Econometric Analysis of the 2013 Major League Baseball Season," MPRA Paper 59593, University Library of Munich, Germany, revised 11 Mar 2014.
    7. Tao, Hung-Lin, 2015. "Multiple earnings comparisons and subjective earnings fairness: A cross-country study," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 57(C), pages 45-54.

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