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When does managerial experience matter? Evidence from Major League Baseball

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  • Paul Crosby

Abstract

In the world of professional sports, a manager’s ability to influence team success is often questioned. This study exploits a unique feature of Major League Baseball (MLB), which has different rules of play depending on what league a team is in, to examine whether managerial impact is driven by the level of responsibility they are given over in-game decision making. Using 47 seasons of MLB data, we find evidence that the development of human capital in the form of on-the-job experience and exposure to prior success is only beneficial when managers are employed in more complex decision-making environments. The results of this study have ramifications on the hiring decisions, both in terms of personnel choice and remuneration, of professional sports organizations.

Suggested Citation

  • Paul Crosby, 2021. "When does managerial experience matter? Evidence from Major League Baseball," Applied Economics, Taylor & Francis Journals, vol. 53(51), pages 5877-5882, November.
    • Handle: RePEc:taf:applec:v:53:y:2021:i:51:p:5877-5882
    DOI: 10.1080/00036846.2021.1931009
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