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Productivity Shocks and Labour Market Outcomes for Top Earners: Evidence from Italian Serie A

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  • Vincenzo Carrieri
  • Andrew M. Jones
  • Francesco Principe

Abstract

How are top earners affected by productivity shocks? We address this question using a unique longitudinal data set on the universe of professional football players in the Italian Serie A, representing 20% of top earners in Italy. We use traumatic injuries and adopt an IV strategy to provide causal estimates of the impact of productivity shocks on several labour market outcomes. We find that a 30‐day injury substantially affects the probability of contract renegotiation and reduces net wages by around 12%. We show that this large penalty is due to employer's precautionary motives rather than to shock‐induced reduction in current player's performance.

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  • Vincenzo Carrieri & Andrew M. Jones & Francesco Principe, 2020. "Productivity Shocks and Labour Market Outcomes for Top Earners: Evidence from Italian Serie A," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(3), pages 549-576, June.
    • Handle: RePEc:bla:obuest:v:82:y:2020:i:3:p:549-576
    DOI: 10.1111/obes.12347
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    3. Mattia Filomena & Francesco Principe, 2025. "This must be the place: local amenities and superstars’ wages," Empirical Economics, Springer, vol. 68(1), pages 213-235, January.
    4. Hoey, Sam & Peeters, Thomas & van Ours, Jan C., 2023. "The impact of absent co-workers on productivity in teams," Labour Economics, Elsevier, vol. 83(C).
    5. Ubaldi Michele & Picchio Matteo, 2025. "Intergenerational Scars: The Impact of Parental Unemployment on Individual Health Later in Life," German Economic Review, De Gruyter, vol. 26(1), pages 35-70.
    6. Karol Kempa, 2022. "Task-specific human capital and returns to specialization: evidence from association football [All about balance? A test of the jack-of-all-trades theory using military enlistment data]," Oxford Economic Papers, Oxford University Press, vol. 74(1), pages 136-154.
    7. von Hinke, Stephanie & Rice, Nigel & Tominey, Emma, 2022. "Mental health around pregnancy and child development from early childhood to adolescence," Labour Economics, Elsevier, vol. 78(C).
    8. Prakash, Kushneel & Kumar, Sanjesh, 2021. "“Smoking your child’s job away”: Parental smoking during one’s childhood and the probability of being employed in adulthood," Journal of Business Research, Elsevier, vol. 136(C), pages 86-98.
    9. Jansen, Andreas, 2022. "Business as Usual, Karrierebremse oder "Karriere-Killer": Der Einfluss chronischer Erkrankungen auf den Erwerbs-und Einkommensverlauf," IAQ-Report 2022-07, University of Duisburg-Essen, Institute for Work, Skills and Training (IAQ).
    10. Jacob Novignon & Eric Arthur & Kwasi Gyabaa Tabiri & Yaw Boateng Atakorah & Justice Nonvignon, 2024. "Does health insurance mitigate the economic impact of negative health outcomes? Evidence from Ghana’s National Health Insurance Scheme," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 26(2), pages 582-602, August.
    11. Yulia Chikish & Brad R. Humphreys, "undated". "The Impact of Health Shocks on Worker Performance: Evidence from Professional Sports," Working Papers 24-06, Department of Economics, West Virginia University.

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