Team performance and within-team salary disparity: An analysis of nippon professional baseball

Using data from Nippon Professional Baseball, which is the Japanese professional baseball league, we examine the relationship between within-team salary disparity and team performance, We find that greater salary disparity tends to result in better team performance, which is the opposite of what prior studies have observed for Major League Baseball. Our results suggest that even within the same sport, the relationship may be partly affected by different institutional settings.