In this article, we investigate the pay-performance relationship of soccer players using individual data from eight seasons of the German soccer league Bundesliga. We find a nonlinear pay-performance relationship, indicating that salary does indeed affect individual performance. The results further show that player performance is affected not only by absolute income level but also by relative income position. An additional analysis of the performance impact of team effects provides evidence of a direct impact of team-mate attributes on individual player performance.
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Document Type: Research Article
The School of Economics and Finance, Queensland University of Technology, Level 8, Z Block, Garens point Campus, Brisbane, QLD, Australia,CREMA-Center for Research in Economics, Management and the Arts, Switzerland,CESifo, Munich, Germany
Publication date: 2007-10-01
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