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Team Effects on Compensation: An Application to Salary Determination in the National Hockey League

Idson, Todd; Kahane, Leo H.

Studies of salary determine 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 paper empirically investigates an additional factor that may influence individual pay, specifically coworker productivity. Data from the National Hockey League are used since 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 by altering the rates at which individual player productive characteristics are valued

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Academic Units
Economics
Publisher
Department of Economics, Columbia University
Series
Department of Economics Discussion Papers, 743
Published Here
March 2, 2011

Notes

September 1995