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Author:Gomez, R.
Title:Salary Compression and Team Performance: Evidence from the National Hockey League
Journal:Zeitschrift für Betriebswirtschaft
2002 : VOL. 72:4, p. 203-220
Index terms:PAY
TEAM WORK
PERFORMANCE APPRAISAL
SPORTS INDUSTRY
Language:eng
Abstract:This paper tests the predictions of two competing pay theories: hierarchical and egalitarian salary structures. The equity-efficiency hypothesis predicts that equitable pay structures are performance enhancing whereas the tournament approach emphasizes the positive incentive effects brought about by more steep or hierarchical pay systems. The paper evaluates these two competing hypotheses using pooled data from the National Hockey League (NHL). This study is the first to examine whether pay compression in the NHL (as measured by the degree of salary dispersion within a team) has a positive effect on the performance of teams and the individuals that constitute them.
SCIMA record nr: 241639
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