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Earnings, Performance, and Nationality Discrimination in a Highly Competitive Labor Market as An Analysis of the English Professional Soccer League

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  • Roberto Pedace

    (Claremont Graduate University)

Abstract

This article tests for the existence of nationality discrimination in the English professional soccer league. Although wage equations have typically been used by labor economists to identify discrimination, the approach may be plagued by unobserved productivity characteristics that are correlated with race and ethnicity, resulting in biased estimates of discrimination. This paper utilizes a "market test" approach to determine the existence of nationality discrimination. The results provide some evidence that players from South America may receive preferential labor market treatment, but this is only evident in the Premier (or highest) division of the league. In addition, this labor market discrimination appears to be a rational response from owners who observe increased attendance with a larger presence of South American players.

Suggested Citation

  • Roberto Pedace, 2008. "Earnings, Performance, and Nationality Discrimination in a Highly Competitive Labor Market as An Analysis of the English Professional Soccer League," Journal of Sports Economics, , vol. 9(2), pages 115-140, April.
    • Handle: RePEc:sae:jospec:v:9:y:2008:i:2:p:115-140
    DOI: 10.1177/1527002507301422
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    Cited by:

    1. Franziska Prockl & Bernd Frick, 2018. "Wage Determination In A Regulated Labor Market: Empirical Evidence From Major League Soccer," Working Papers Dissertations 39, Paderborn University, Faculty of Business Administration and Economics.
    2. repec:eid:wpaper:08/10 is not listed on IDEAS
    3. Franziska Prockl, 2018. "The Superstar Code - Deciphering Key Characteristics And Their Value," Working Papers Dissertations 38, Paderborn University, Faculty of Business Administration and Economics.
    4. Wen-Jhan Jane, 2021. "The impact of cultural distance on salary: the case of Samurai Japan," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 11(1), pages 85-123, March.
    5. Christer Thrane, 2019. "Performance and Actual Pay in Norwegian Soccer," Journal of Sports Economics, , vol. 20(8), pages 1051-1065, December.
    6. Alberto Calahorro-López & Melinda Ratkai & Julio Vena-Oya, 2022. "The Financial/Accounting Impact of FFP on Participating in European Competitions: An Analysis of the Spanish League," IJFS, MDPI, vol. 10(3), pages 1-19, September.
    7. L.F.M. Groot & J. Ferwerda, 2014. "Soccer jersey sponsors and the world cup," Working Papers 14-07, Utrecht School of Economics.
    8. Jye-Shyan Wang & Wen-Jhan Jane & Yu-Hung Cheng & Pei-Hsin Fang, 2021. "Does fan discrimination exist? Mixed-method investigation of customer discrimination in Chinese professional baseball league," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 11(3), pages 477-496, September.
    9. O B Bodvarsson & John Sessions, 2010. "Nationality Discrimination in the Labor Market: Theory and Test," Department of Economics Working Papers 08/10, University of Bath, Department of Economics.
    10. Christopher Coyne & Justin Isaacs & Jeremy Schwartz, 2010. "Entrepreneurship and the taste for discrimination," Journal of Evolutionary Economics, Springer, vol. 20(4), pages 609-627, August.
    11. Scott Tainsky & Jason A. Winfree, 2010. "Discrimination and Demand: The Effect of International Players on Attendance in Major League Baseball," Social Science Quarterly, Southwestern Social Science Association, vol. 91(1), pages 117-128, March.
    12. Barry Reilly, 2014. "Labour market discrimination," Chapters, in: John Goddard & Peter Sloane (ed.), Handbook on the Economics of Professional Football, chapter 15, pages 238-258, Edward Elgar Publishing.
    13. John Goddard & John O. S. Wilson, 2009. "Racial discrimination in English professional football: evidence from an empirical analysis of players' career progression," Cambridge Journal of Economics, Oxford University Press, vol. 33(2), pages 295-316, March.
    14. Robert O Deaner & Aaron Lowen & Stephen Cobley, 2013. "Born at the Wrong Time: Selection Bias in the NHL Draft," PLOS ONE, Public Library of Science, vol. 8(2), pages 1-7, February.
    15. Bernd Frick, 2007. "The Football Players' Labor Market: Empirical Evidence From The Major European Leagues," Scottish Journal of Political Economy, Scottish Economic Society, vol. 54(3), pages 422-446, July.
    16. Bastien Drut & Richard Duhautois, 2014. "L'effet d'âge relatif. Une expérience naturelle sur des footballeurs," Revue économique, Presses de Sciences-Po, vol. 65(3), pages 657-668.
    17. Jose Luis Felipe & Alvaro Fernandez-Luna & Pablo Burillo & Luis Eduardo de la Riva & Javier Sanchez-Sanchez & Jorge Garcia-Unanue, 2020. "Money Talks: Team Variables and Player Positions that Most Influence the Market Value of Professional Male Footballers in Europe," Sustainability, MDPI, vol. 12(9), pages 1-8, May.

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