Salary disclosure and individual effort: Evidence from the National Hockey League

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2022
Volume: 202
Issue: C
Pages: 471-497

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In late January, 1990, the salary of every National Hockey League (NHL) player was suddenly disclosed, ending a decades-long culture of pay secrecy. I find that underpaid players respond to this new information by reallocating effort from defense to offense, which is more highly compensated within the league. Underpaid players begin scoring more, but allow their teams to get scored on by even more than the additional goals they provide. Asymmetrically, overpaid players do not become more defensive-minded. Consistent with reference-dependent utility theory, I find suggestive evidence that this shift is more pronounced for underpaid players who play for teams with higher overall payrolls, as these players likely have a larger discrepancy between their actual salary and their reference point.

Technical Details

RePEc Handle
repec:eee:jeborg:v:202:y:2022:i:c:p:471-497
Journal Field
Theory
Author Count
1
Added to Database
2026-01-25