The Effect of Professional Sports on the Earnings of Individuals: Evidence from Microeconomic Data
AbstractThis paper explores the impact of professional sports teams and stadiums on the wages of individuals employed in several narrowly defined occupational groups in cities in the United States. The occupational groups examined are among those that proponents of public funding of professional sports claim will benefit economically from these stadiums. Our analysis uses data from the March Supplement to the Current Population Survey (CPS) for the period 1977 to 1998 as well as sports variables previously utilized by Coates and Humphreys (1999), (2001). Previous research focused on aggregate measures of income whereas here the focus is on the wages of individual workers. The results of the study confirm conclusions of earlier research that the overall sports environment is frequently statistically significant as a determinant of earnings and that the predicted mean impact of sports on wages in a sample of individuals employed in occupations closely related to professional sports is an annual average decrease in real earnings of $47.95. The results also show that the effects of the sports environment on wages differ across job-types. Workers in retail occupations earn more on average each year due to the presence of professional sports while workers in other peripherally related occupations like food services and hotels earn less.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by UMBC Department of Economics in its series UMBC Economics Department Working Papers with number 03-104.
Length: 16 pages
Date of creation: Sep 2003
Date of revision:
Contact details of provider:
Postal: UMBC Department of Economics 1000 Hilltop Circle Baltimore MD 21250, USA
Web page: http://www.umbc.edu/economics
More information through EDIRC
Other versions of this item:
- Dennis Coates & Brad Humphreys, 2011. "The effect of professional sports on the earnings of individuals: evidence from microeconomic data," Applied Economics, Taylor & Francis Journals, vol. 43(29), pages 4449-4459.
- Dennis Coates & Brad R. Humphreys, 2006. "The Effect of Professional Sports on the Earnings of Individuals: Evidence from Microeconomic Data," Working Papers 0612, International Association of Sports Economists & North American Association of Sports Economists.
- R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
- H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
This paper has been announced in the following NEP Reports:
- NEP-CUL-2003-09-14 (Cultural Economics)
- NEP-GEO-2003-09-14 (Economic Geography)
- NEP-MIC-2003-09-14 (Microeconomics)
- NEP-SPO-2003-09-14 (Sports & Economics)
- NEP-URE-2003-09-14 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dennis Coates & Brad R. Humphreys, 1999. "The growth effects of sport franchises, stadia, and arenas," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 18(4), pages 601-624.
- John J. Siegfried & Andrew Zimbalist, 2000. "The Economics of Sports Facilities and Their Communities," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 95-114, Summer.
- Carlino, Gerald & Coulson, N. Edward, 2004.
"Compensating differentials and the social benefits of the NFL,"
Journal of Urban Economics,
Elsevier, vol. 56(1), pages 25-50, July.
- Gerald Carlino & N. Edward Coulson, 2002. "Compensating differentials and the social benefits of the NFL," Working Papers 02-12, Federal Reserve Bank of Philadelphia.
- Topel, Robert H, 1986. "Local Labor Markets," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages S111-43, June.
- Coates, Dennis & Humphreys, Brad R., 2003. "The effect of professional sports on earnings and employment in the services and retail sectors in US cities," Regional Science and Urban Economics, Elsevier, vol. 33(2), pages 175-198, March.
- Jeffrey M. Wooldridge, 2003. "Cluster-Sample Methods in Applied Econometrics," American Economic Review, American Economic Association, vol. 93(2), pages 133-138, May.
- Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-38, May.
- Dennis Coates & Brad R. Humphreys, 2001. "The Economic Consequences of Professional Sports Strikes and Lockouts," Southern Economic Journal, Southern Economic Association, vol. 67(3), pages 737-747, January.
- Murphy, Kevin M & Welch, Finis, 1992. "The Structure of Wages," The Quarterly Journal of Economics, MIT Press, vol. 107(1), pages 285-326, February.
- Lasse Steiner & Bruno S. Frey & Simone Hotz, 2013.
"European capitals of culture and life satisfaction,"
ECON - Working Papers
117, Department of Economics - University of Zurich.
- Lasse Steiner & Bruno S. Frey & Simone Hotz, 2013. "European Capitals of Culture and Life Satisfaction," CREMA Working Paper Series 2013-07, Center for Research in Economics, Management and the Arts (CREMA).
- Georgios Kavetsos & Stefan Szymanski, 2008.
"National Wellbeing and International Sports Events,"
0804, International Association of Sports Economists & North American Association of Sports Economists.
- Kavetsos, Georgios & Szymanski, Stefan, 2010. "National well-being and international sports events," Journal of Economic Psychology, Elsevier, vol. 31(2), pages 158-171, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christelle Viauroux).
If references are entirely missing, you can add them using this form.