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Substitution and complementarity between managers and subordinates: Evidence from British football

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  • Bridgewater, Sue
  • Kahn, Lawrence M.
  • Goodall, Amanda H.

Abstract

We use data on British football managers and teams over the 1994-2007 period to study substitution and complementarity between leaders and subordinates. We find for the Premier League (the highest level of competition) that, other things being equal, managers who themselves played at a higher level raise the productivity of less-skilled teams by more than that of highly skilled teams. This is consistent with the hypothesis that one function of a top manager is to communicate to subordinates the skills needed to succeed, since less skilled players have more to learn. However, we also find that managers with more accumulated professional managing experience raise the productivity of talented players by more than that of less-talented players. This is consistent with the hypothesis that a further function of successful managers in high-performance workplaces is to manage the egos of elite workers. Such a function is potentially more important the more accomplished the workers are-as indicated, in our data, by teams with greater payrolls.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 18 (2011)
Issue (Month): 3 (June)
Pages: 275-286

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Handle: RePEc:eee:labeco:v:18:y:2011:i:3:p:275-286

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Web page: http://www.elsevier.com/locate/labeco

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Keywords: Productivity Leadership;

References

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Citations

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Cited by:
  1. Lazear, Edward P., 2012. "Leadership: A personnel economics approach," Labour Economics, Elsevier, Elsevier, vol. 19(1), pages 92-101.
  2. Goodall, Amanda H., 2012. "A Theory of Expert Leadership," IZA Discussion Papers 6566, Institute for the Study of Labor (IZA).
  3. Hideo Owan & Shingo Takahashi & Tsuyoshi Tsuru & Katsuhito Uehara, 2014. "Finding good managers: an econometric case study of a large Japanese auto dealership," Working Papers, Research Institute, International University of Japan EMS_2014_08, Research Institute, International University of Japan.
  4. Ruxanda Berlinschi & Jeroen Schokkaert & Johan F.M. Swinnen, 2010. "When Drains and Gains Coincide: Migration and International Football Performance," LICOS Discussion Papers, LICOS - Centre for Institutions and Economic Performance, KU Leuven 26510, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  5. Owan, Hideo & Takahashi, Shingo & Tsuru, Tsuyoshi & Uehara, Katsuhito, 2014. "Finding Good Managers: An Econometric Case Study of a Large Japanese Auto Dealership," Discussion Paper Series, Institute of Economic Research, Hitotsubashi University 609, Institute of Economic Research, Hitotsubashi University.

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