Breunig, Robert; Garrett-Rumba, Bronwyn; Jardin, Mathieu; … - In: Applied Economics 46 (2014) 3, pp. 271-281
We develop a general theoretical model of the effect of wage dispersion on team performance which nests two possibilities: wage inequality may have either negative or positive effects on team performance. A parameter which captures the marginal cost of effort, which we estimate using game-level...