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Team effects on compensation: an application to salary determination in the National Hockey League
Author(s) -
Idson TL,
Kahane LH
Publication year - 2000
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.2000.tb00022.x
Subject(s) - salary , league , compensation (psychology) , productivity , function (biology) , economics , labour economics , demographic economics , econometrics , psychology , social psychology , physics , astronomy , evolutionary biology , market economy , macroeconomics , biology
Studies of salary determination largely model pay as a function of the attributes of the individual and the workplace (i.e., employer size, job characteristics, and so forth). This article empirically investigates an additional factor that may influence individual pay, specifically coworker productivity. Data from professional sports are used to evaluate this question because both salary and teammate performance measures are readily available. We find that team attributes have both direct effects on an individual's pay, and indirect effects through altering the rates at which individual player productive characteristics are valued.