Wage inequality and firm performance: professional basketball's natural experiment.: An article from: Atlantic Economic Journal

This digital document is an article from Atlantic Economic Journal, published by Atlantic Economic Society on June 1, 2004. The length of the article is 5076 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the author: The purpose of this inquiry is to utilize a natural experiment from professional basketball to examine how wage inequality impacts the productivity of the firm. The literature suggests that wage inequality may promote firm productivity if higher wages are necessary to limit the damage potential of certain workers. In contrast, other writers have trumpeted the productivity gains from worker cooperation and thus, argued that wage disparity lowers firm output. During the 1990s, the National Basketball Association experienced dramatic increases in the level of wage inequality. The empirical evidence reported here supports a third possibility. Specifically, wage inequality and firm productivity are not related. (JEL J41, L83)

Citation Details
Title: Wage inequality and firm performance: professional basketball's natural experiment.
Author: David J. Berri
Publication:Atlantic Economic Journal (Refereed)
Date: June 1, 2004
Publisher: Atlantic Economic Society
Volume: 32 Issue: 2 Page: 130(10)

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