Bucciol, Alessandro; Piovesan, Marco - Harvard Business School, Harvard University - 2012
The effect of intra-firm pay dispersion on work performance is controversial and the empirical evidence is mixed. High … pay dispersion may act as an extra incentive for employees' effort or it may reduce motivation and team cohesiveness …. For each match we computed the exact pay dispersion of each work team and estimated its effect on team performance. Our …