The effect of wage dispersion on team outcome and the way team outcome is produced

Applied Economics

Volumn 43, Issue 23, 2011, Pages 3037-3049

  Franck, Egon ^a   Nüesch, Stephan ^a  

^a UNIVERSITY OF ZURICH   (Switzerland)

Author keywords

[No Author keywords available]

Indexed keywords

MANAGEMENT; PERFORMANCE ASSESSMENT; SPORT; WAGE;

EID: 79961033430     PISSN: 00036846     EISSN: 14664283     Source Type: Journal    
DOI: 10.1080/00036840903427224     Document Type: Article

References (65)

1. Akerlof, G. A. and Yellen, J. L. (1990) The fair wage-effort hypothesis and unemployment, The Quarterly Journal of Economics, 55, 255-83.
2. Allison, P. D. (1978) Measures of inequality, American Sociological Review, 43, 865-80.
3. Beaumont, P. B. and Harris, R. I. D. (2003) Internal wage structures and organizational performance, British Journal of Industrial Relations, 41, 53-70.
4. Berri, D. J. and Jewell, T. R. (2004) Wage inequality and firm performance: professional basketball's natural experiment, Atlantic Economic Journal, 32, 130-9.
5. Bingley, P. and Eriksson, T. (2001) Pay spread and skewness, employee effort and firm productivity, Working Paper No. 01-2, Department of Economics, Aarhus School of Business.
6. Bloom, M. (1999) The performance effects of pay dispersion on individuals and organizations, Academy of Management Journal, 42, 25-40.
7. Bound, J., Jaeger, D. A. and Baker, R. M. (1995) Problems with instrumental variables estimation. When the correlation between the instruments and the endogenous explanatory variable is weak, Journal of American Statistical Association, 90, 443-50.
8. Brown, M. P., Sturman, M. C. and Simmering, M. J. (2003) Compensation policy and organizational performance: the efficiency, operational, and financial implications of pay levels and pay structure, Academy of Management Journal, 46, 752-62.
9. Cowherd, D. M. and Levine, D. I. (1992) Product quality and pay equity between lower-level employees and top management: an investigation of distributive justice theory, Administrative Science Quarterly, 37, 301-20.
10. Crown, D. F. (2000) Building a multidimensional, contextrelevant categorization heuristic for organizational work teams: the TOS-TAB typology, Research in Personnel and Human Resources Management, 18, 93-136.
11. DeBrock, L., Hendricks, W. and Koenker, R. (2004) Pay and performance. The impact of salary distribution on firm-level outcomes in baseball, Journal of Sports Economics, 5, 243-61.
12. Depken, C. A. (2000) Wage disparity and team productivity: evidence from Major League Baseball, Economic Letters, 67, 87-92.
13. Drago, R. W. and Garvey, G. T. (1998) Incentives for helping on the job: theory and evidence, Journal of Labor Economics, 16, 1-15.
14. Eriksson, T. (1999) Executive compensation and tournament theory: empirical tests on Danish data, Journal of Labor Economics, 17, 262-80.
15. Festinger, L. (1954) A theory of social comparison processes, Human Relations, 7, 117-40.
16. Forrest, D. and Simmons, R. (2002) Team salaries and playing success in sports: a comparative perspective, Zeitschrift für Betriebswirtschaft, 72, 221-38.
17. Franck, E. and Nüesch, S. (2008) The effect of talent disparity on team productivity, Working Paper No. 0087, University of Zurich.
18. Frick, B. (2007) The football players' labor market: empirical evidence from the major European leagues, Scottish Journal of Political Economy, 54, 422-46.
19. Frick, B., Prinz, J. and Winkelmann, K. (2003) Pay inequalities and team performance. Empirical evidence from the North American major leagues, International Journal of Manpower, 24, 472-88.
20. Gomez, R. (2002) Salary compression and team performance: evidence from the National Hockey League, Zeitschrift für Betriebswirtschaft, 72, 203-20.
21. Groysberg, B., Polzer, J. T. and Elfenbein, H. A. (2007) Too many cooks spoil the broth: how high status individuals decrease group effectiveness, Working Paper, Harvard University.
22. Grund, C. and Westergaard-Nielsen, N. (2005) The dispersion of employees' wage increases and firm performance, Working Paper, University of Bonn.
23. Grund, C. and Westergaard-Nielsen, N. (2008) The dispersion of employees' wage increases and firm performance, Industrial and Labor Relations Review, 61, 485-501.
24. Harder, J. W. (1992) Play for pay: effects of inequity in a pay-for-performance context, Administrative Science Quarterly, 37, 321-35.
25. Harrison, D. A. and Klein, K. J. (2007) What's the difference? Diversity constructs as separation, variety, or disparity in organizations, Academy of Management Journal, 32, 1199-228.
26. Hausman, J. A. (1978) Specification tests in econometrics, Econometrica, 46, 236-55.
27. Hey, J. D. and Lambert, P. J. (1980) Relative deprivation and the Gini coefficient: comment, The Quarterly Journal of Economics, 95, 567-73.
28. Heyman, F. (2005) Pay inequality and firm performance: evidence from matched employer-employee data, Applied Economics, 37, 1313-27.
29. Hibbs, D. A. and Locking, H. (2000) Wage dispersion and productive efficiency: evidence from Sweden, Journal of Labor Economics, 18, 755-82.
30. Jewell, R. T. and Molina, D. J. (2004) Productive efficiency and salary distribution: the case of US Major League Baseball, Scottish Journal of Political Economy, 51, 127-42.
31. Jirjahn, U. and Kraft, K. (2007) Intra-firm wage dispersion and firm performance - is there a uniform relationship?, Kyklos, 60, 231-53.
32. Jones, D. (2007) Annual review of football finance, Manchester, Deloitte.
33. Kahn, M. L. (2000) The sports business as a labor market laboratory, Journal of Economic Perspectives, 14, 75-94.
34. Keidel, R. Q. (1987) Team sports models as a generic organizational framework, Human Relations, 40, 591-612.
35. Kyriazidou, E. (1997) Estimation of a panel data sample selection model, Econometrica, 65, 1335-64.
36. Lallemand, T., Plasman, R. and Rycx, F. (2004) Intra-firm wage dispersion and firm performance: evidence from linked employer-employee data, Kyklos, 57, 533-58.
37. Lazear, E. P. (1989) Pay equality and industrial politics, Journal of Political Economy, 97, 561-80.
38. Lehmann, E. E. and Schulze, G. G. (2008) What does it take to be a star? - the role of performance and the media for German soccer players, Applied Economics Quarterly, 54, 59-70.
39. Leonard, J. S. (1990) Executive pay and firm performance, Industrial and Labor Relations Review, 43, 13-29.
40. Levine, D. I. (1991) Cohesiveness, productivity, and wage dispersion, Journal of Economic Behavior and Organization, 15, 237-55.
41. Main, B. G. M., O'Reilly, C. A. and Wade, J. (1993) Top executive pay: tournament or teamwork?, Journal of Labor Economics, 11, 606-28.
42. Martin, J. (1981) Relative deprivation: a theory of distributive injustice for an era of shrinking resources, in Research in Organizational Behavior: An Annual Series of Analytical Essays and Critical Reviews (Eds) L. L. Cummings and B. M. Staw, JAI Press, Greenwich, pp. 53-107.
43. Mas, A. (2006) Pay, reference points, and police performance, The Quarterly Journal of Economics, 71, 783-821.
44. Milgrom, P. R. (1988) Employment contracts. Influence activities, and efficient organization designs, Journal of Political Economy, 96, 42-60.
45. Milgrom, P. R. and Roberts, J. (1992) Economics, Organizations, and Management, Prentice-Hall, Englewood Cliffs.
46. Osterloh, M. and Frey, B. S. (2000) Motivation, knowledge transfer and organizational forms, Organization Science, 11, 538-50.
47. Overbeck, J. R., Correll, J. and Park, B. (2005) Internal status sorting in groups: the problem of too many stars, in Status and Group (Ed.) M. Thomas-Hunt, Elsevier, Amsterdam, pp. 169-99.
48. Paul, S. (1991) An index of relative deprivation, Economic Letters, 36, 337-41.
49. Paul, S. (1999) Relative deprivation, envy and economic inequality: a comment, Kyklos, 52, 441-8.
50. Pfeffer, J. and Langton, N. (1993) The effect of wage dispersion on satisfaction, productivity, and working collaboratively: evidence from college and university faculty, Administrative Science Quarterly, 38, 382-407.
51. Podder, N. (1996) Relative deprivation, envy and economic inequality, Kyklos, 49, 353-76.
52. Ramaswamy, R. and Rowthorn, R. E. (1991) Efficiency wages and wage dispersion, Economica, 58, 501-14.
53. Richards, D. G. and Guell, R. C. (1998) Baseball success and the structure of salaries, Applied Economics Letters, 5, 291-6.
54. Runciman, W. G. (1972) Relative Deprivation and Social Justice: A Study of Attitudes to Social Inequality in Twentieth-Century England, Routledge & Kegan Paul, London.
55. Shaw, J. D., Gupta, N. and Delery, J. E. (2002) Pay dispersion and workforce performance: moderating effects of incentives and interdependence, Strategic Management Journal, 23, 491-512.
56. Shea, J. (1997) Instrument relevance in multivariate linear models: a simple measure, Review of Economics and Statistics, 74, 348-52.
57. Sommers, P. M. (1998) Work incentives and salary distributions in the National Hockey League, Atlantic Economic Journal, 26, 119.
58. Stouffer, S. A., Suchman, E. A., DeVinney, L. C., Star, S. A. and Williams, R. M. (1949) The American Soldier: Adjustment During Army Life, Princeton University Press, Princeton, NJ.
59. Torgler, B. and Schmidt, S. L. (2007) What shapes player performance in soccer? Empirical findings from a panel analysis, Applied Economics, 39, 2355-69.
60. Torgler, B., Schmidt, S. L. and Frey, B. S. (2006) Relative income position and performance: an empirical panel analysis, Working Paper, University of Zurich.
61. Winter-Ebmer, R. and Zweimüller, J. (1999) Intra-firm wage dispersion and firm performance, Kyklos, 52, 555-72.
62. Wolfe, R. A., Weick, K. E., Usher, J. M., Terborg, J. R., Poppo, L., Murrell, A. J., Dukerich, J. M., Core, D. D., Dickson, K. E. and Jourdan, J. S. (2005) Sport and organizational studies. Exploring synergy, Journal of Management Inquiry, 14, 182-210.
63. Wooldridge, J. M. (2002) Econometric Analysis of Cross Section and Panel Data, The MIT Press, Cambridge/London.
64. Wooldridge, J. M. (2003) Introductory Econometrics: A Modern Approach, 2nd edn, South-Western, Cincinnati, OH.
65. Yitzhaki, S. (1979) Relative deprivation and the Gini coefficient, The Quarterly Journal of Economics, 93, 321-4.