Afzali, Aaron; Oxelheim, Lars; Randøy, Trond; Vieito, … - 2023
In this study, we examine the relationship between within-firm pay inequality and employee productivity. We use hand … employee productivity. Consistent with tournament theory, we show that the pay gap between the CEO and the Vice Presidents … initially positively affects employee productivity. However, this positive effect only works up to a certain level, at which …