We would like to thank Larry Kahn and Joe Tracy for helpful comments. All errors, though, remain the responsibility of the authors.

Abstract

Studies of salary determine largely model pays as a function of the attributes of the individual and the workplace (i.e. employer size, job characteristics, and so forth). This paper empirically investigates an additional factor that may influence indi vidual pay, specifically coworker productivity. Data from the National Hockey League are used since both salary and teammate performance measure are readily available. We find that team attributes have both direct effects on an individual's pay, and indir ect effects by altering the rates at which individual player productive characteristics are valued.