Fair or Foul?: The Effects of External, Internal, and Employee Equity on Changes in Performance of Major League Baseball Players

We propose six hypotheses that relate employee,internal, and external inequities to changes inperformance. We test these hypotheses with a sample of362 Major League Baseball players. The findings showed that overpayment (as measured by actualemployee and external inequities) is a significantpredictor of positive performance changes, underpaymentis a significant predictor of negative performancechanges, and employee equity is a greater predictor ofchange in performance than internal equity.

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