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Pay dispersion and productivity in sports

In: Personnel Economics in Sports

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  • Leo Kahane

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

Suggested Citation

  • Leo Kahane, 2018. "Pay dispersion and productivity in sports," Chapters, in: Neil Longley (ed.), Personnel Economics in Sports, chapter 7, pages 136-167, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:17319_7
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    File URL: https://www.elgaronline.com/view/edcoll/9781786430908/9781786430908.00016.xml
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    Cited by:

    1. Marco Di Domizio & Carlo Bellavite Pellegrini & Raul Caruso, 2022. "Payroll dispersion and performance in soccer: A seasonal perspective analysis for Italian Serie A (2007–2021)," Contemporary Economic Policy, Western Economic Association International, vol. 40(3), pages 513-525, July.

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    Keywords

    Economics and Finance;

    Statistics

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