TITLE:
Does Pay Disparity Really Hamstring Team Performance? A Study of Professional Ice Hockey Players
AUTHORS:
Noah Stefanec
KEYWORDS:
Relative Compensation; Pay Compression; Industrial Politics
JOURNAL NAME:
Sociology Mind,
Vol.2 No.4,
November
1,
2012
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%.