Does Pay Disparity Really Hamstring Team Performance? A Study of Professional Ice Hockey Players

Noah Stefanec

Claremont Graduate University, Claremont, USA.

DOI: 10.4236/sm.2012.24058                

Abstract

Here, I employ an unbalanced panel of data from the National Hockey League (NHL) to examine the impact of pay disparity on team-cohesiveness. I find evidence to suggest the existence of a negative relationship between higher degrees of within-position pay disparity and team performance; the evidence reported here shows a simple monotonic elasticity of team performance with respect to pay disparity to be roughly 19%.

Keywords

Relative Compensation; Pay Compression; Industrial Politics

Conflicts of Interest

The authors declare no conflicts of interest.

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