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Payroll dispersion and performance in soccer: A seasonal perspective analysis for Italian Serie A (2007–2021)

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  • Marco Di Domizio
  • Carlo Bellavite Pellegrini
  • Raul Caruso

Abstract

This paper investigates the relevance of wage distributions among players in determining the seasonal performances of Italian Serie A teams. Using dispersion measures on weighted wages calculated from 2007 to 2021, we analyzed the relationship between pay dispersion and team performance over 14 seasons. The percentage of points at the end of the season served as the dependent variable, and panel data techniques revealed a statistically significant association of seasonal team performances with relative wages and a negative association with salary dispersion. The empirical results confirm that cohesion theory holds true for soccer teams in Italy, and therefore more equally weighted wages are associated with better on‐field performance.

Suggested Citation

  • Marco Di Domizio & Carlo Bellavite Pellegrini & Raul Caruso, 2022. "Payroll dispersion and performance in soccer: A seasonal perspective analysis for Italian Serie A (2007–2021)," Contemporary Economic Policy, Western Economic Association International, vol. 40(3), pages 513-525, July.
    • Handle: RePEc:bla:coecpo:v:40:y:2022:i:3:p:513-525
    DOI: 10.1111/coep.12566
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