We collected a unique dataset from the Italian soccer league to study the effect of pay dispersion on team performance, under different definitions of what constitutes a “team”. Our results show that when the team is considered to consist of only the players who contribute to the result, high pay dispersion has a detrimental impact on team performance. Enlarging the definition of work team causes this effect to disappear or even become positive. Finally, we find that the detrimental effect of pay dispersion is due to worst individual performance, rather than a reduction of team cooperation.
Pay Dispersion and Work Performance
BUCCIOL, Alessandro;Piovesan M.
2012-01-01
Abstract
We collected a unique dataset from the Italian soccer league to study the effect of pay dispersion on team performance, under different definitions of what constitutes a “team”. Our results show that when the team is considered to consist of only the players who contribute to the result, high pay dispersion has a detrimental impact on team performance. Enlarging the definition of work team causes this effect to disappear or even become positive. Finally, we find that the detrimental effect of pay dispersion is due to worst individual performance, rather than a reduction of team cooperation.
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