IDEAS home Printed from https://ideas.repec.org/p/nsr/niesrd/339.html
   My bibliography  Save this paper

The Returns to Scarce Talent: Footedness and Player Remuneration in European Soccer

Author

Listed:
  • Dr Alex Bryson

Abstract

We investigate the salary returns to the ability to play football with both feet. The majority of footballers are predominantly right footed. Using two data sets, a cross-section of footballers in the five main European leagues and a panel of players in the German Bundesliga, we find robust evidence of a substantial salary premium for two-footed ability, even after controlling for available player performance measures. We assess how this premium varies across the salary distribution and by player position.

Suggested Citation

  • Dr Alex Bryson, 2009. "The Returns to Scarce Talent: Footedness and Player Remuneration in European Soccer," National Institute of Economic and Social Research (NIESR) Discussion Papers 339, National Institute of Economic and Social Research.
  • Handle: RePEc:nsr:niesrd:339
    as

    Download full text from publisher

    File URL: https://www.niesr.ac.uk/wp-content/uploads/2021/10/dp339-2.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Benno Torgler & Sascha L. Schmidt & Bruno S. Frey, 2006. "Relative Income Position And Performance: An Empirical Panel Analysis," IEW - Working Papers 268, Institute for Empirical Research in Economics - University of Zurich.
    2. Christopher S. Ruebeck & Joseph E. Harrington, Jr & Robert Moffitt, 1997. "Handedness and Earnings," Economics Working Paper Archive 533, The Johns Hopkins University,Department of Economics, revised Jun 2004.
    3. Egon Franck & Stephan Nüesch, 2008. "The Effect of Talent Disparity on Team Performance in Soccer," Working Papers 0087, University of Zurich, Institute for Strategy and Business Economics (ISU), revised 2009.
    4. Koenker,Roger, 2005. "Quantile Regression," Cambridge Books, Cambridge University Press, number 9780521845731, January.
    5. Bernd Frick & Robert Simmons, 2008. "The impact of managerial quality on organizational performance: evidence from German soccer," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(7), pages 593-600.
    6. Kevin Denny & Vincent O’ Sullivan, 2007. "The Economic Consequences of Being Left-Handed: Some Sinister Results," Journal of Human Resources, University of Wisconsin Press, vol. 42(2).
    7. Barry Reilly & Robert Witt, 2007. "The Determinants of Base Pay and the Role of Race in Major League Soccer: Evidence from the 2007 League Season," School of Economics Discussion Papers 1907, School of Economics, University of Surrey.
    8. Benno Torgler & Sascha Schmidt, 2007. "What shapes player performance in soccer? Empirical findings from a panel analysis," Applied Economics, Taylor & Francis Journals, vol. 39(18), pages 2355-2369.
    9. David J. Berri & Rob Simmons, 2009. "Race and the Evaluation of Signal Callers in the National Football League," Journal of Sports Economics, , vol. 10(1), pages 23-43, February.
    10. Claudio Lucifora & Rob Simmons, 2003. "Superstar Effects in Sport," Journal of Sports Economics, , vol. 4(1), pages 35-55, February.
    11. Idson, Todd L & Kahane, Leo H, 2000. "Team Effects on Compensation: An Application to Salary Determination in the National Hockey League," Economic Inquiry, Western Economic Association International, vol. 38(2), pages 345-357, April.
    12. 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.
    13. Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-475, June.
    14. Bernd Frick, 2009. "Globalization and Factor Mobility," Journal of Sports Economics, , vol. 10(1), pages 88-106, February.
    15. Caroline Elliott & Rob Simmons, 2008. "Determinants of UK Box Office Success: The Impact of Quality Signals," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 33(2), pages 93-111, September.
    16. Claude Vincent & Byron Eastman, 2009. "Determinants of Pay in the NHL," Journal of Sports Economics, , vol. 10(3), pages 256-277, June.
    17. Pedro Garcia-del-Barrio & Francesc Pujol, 2007. "Hidden monopsony rents in winner-take-all markets-sport and economic contribution of Spanish soccer players," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 28(1), pages 57-70.
    18. Kahn, Lawrence M, 1993. "Free Agency, Long-Term Contracts and Compensation in Major League Baseball: Estimates from Panel Data," The Review of Economics and Statistics, MIT Press, vol. 75(1), pages 157-164, February.
    19. Erik E. Lehmann & Günther G. Schulze, 2007. "What does it take to be a star? The role of performance and the media for German soccer players," Discussion Paper Series 1, Department of International Economic Policy, University of Freiburg, revised Mar 2008.
    20. Barton Hughes Hamilton, 1997. "Racial discrimination and professional basketball salaries in the 1990s," Applied Economics, Taylor & Francis Journals, vol. 29(3), pages 287-296.
    21. Rob Simmons & David Berri, 2009. "Gains from Specialization and Free Agency: The Story from the Gridiron," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 34(1), pages 81-98, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ana Rincon-Aznar, 2009. "Rates of return and alternative measures of capital input: 14 countries and 10 branches, 1971-2005," National Institute of Economic and Social Research (NIESR) Discussion Papers 347, National Institute of Economic and Social Research.
    2. Sila, Urban, 2009. "Can family-support policies help explain differences in working hours across countries?," LSE Research Online Documents on Economics 28684, London School of Economics and Political Science, LSE Library.
    3. Dennis Coates, 2017. "Returns to Handedness in Professional Hockey," Sports Economics, Management, and Policy, in: Bernd Frick (ed.), Breaking the Ice, pages 41-56, Springer.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alex Bryson & Bernd Frick & Rob Simmons, 2009. "The Returns to Scarce Talent: Footedness and Player Remuneration in European Soccer," CEP Discussion Papers dp0948, Centre for Economic Performance, LSE.
    2. Alex Bryson & Bernd Frick & Rob Simmons, 2013. "The Returns to Scarce Talent," Journal of Sports Economics, , vol. 14(6), pages 606-628, December.
    3. Christian Deutscher & Arne Büschemann, 2016. "Does Performance Consistency Pay Off Financially for Players? Evidence From the Bundesliga," Journal of Sports Economics, , vol. 17(1), pages 27-43, January.
    4. 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.
    5. R Simmons & D Berri, 2007. "Does it pay to specialize? The story from the Gridiron," Working Papers 591134, Lancaster University Management School, Economics Department.
    6. Egon Franck & Stephan Nüesch, 2012. "Talent And/Or Popularity: What Does It Take To Be A Superstar?," Economic Inquiry, Western Economic Association International, vol. 50(1), pages 202-216, January.
    7. Richau, Lukas & Follert, Florian & Frenger, Monika & Emrich, Eike, 2021. "The Rainmaker?! The impact of investors on transfer fees in the English Premier League," Working Paper 187/2021, Helmut Schmidt University, Hamburg.
    8. David J. Berri & Brad R. Humphreys & Robert Simmons, 2013. "Valuing the blind side: pay and performance of offensive linemen in the National Football League," Chapters, in: Plácido Rodríguez & Stefan Késenne & Jaume García (ed.), The Econometrics of Sport, chapter 6, pages 99-114, Edward Elgar Publishing.
    9. 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.
    10. Hofmann, Julian & Schnittka, Oliver & Johnen, Marius & Kottemann, Pascal, 2021. "Talent or popularity: What drives market value and brand image for human brands?," Journal of Business Research, Elsevier, vol. 124(C), pages 748-758.
    11. Rob Simmons & David Berri, 2009. "Gains from Specialization and Free Agency: The Story from the Gridiron," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 34(1), pages 81-98, February.
    12. Müller, Oliver & Simons, Alexander & Weinmann, Markus, 2017. "Beyond crowd judgments: Data-driven estimation of market value in association football," European Journal of Operational Research, Elsevier, vol. 263(2), pages 611-624.
    13. Vincenzo Carrieri & Francesco Principe & Michele Raitano, 2018. "What makes you ‘super-rich’? New evidence from an analysis of football players’ wages," Oxford Economic Papers, Oxford University Press, vol. 70(4), pages 950-973.
    14. Carlo Bellavite Pellegrini & Raul Caruso & Marco Di Domizio, 2021. "Relative wages, payroll structure and performance in soccer. Evidence from Italian Serie A (2007-2019)," DISCE - Quaderni del Dipartimento di Politica Economica dipe0015, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    15. Marco Di Domizio & Carlo Bellavite Pellegrini & Raul Caruso, 2022. "Payroll dispersion and performance in soccer: A seasonal perspective analysis for Italian Serie A (2007–2021)," Contemporary Economic Policy, Western Economic Association International, vol. 40(3), pages 513-525, July.
    16. Frick, Bernd, 2012. "Die Entlohnung von Fußball-Profis: Ist die vielfach kritisierte 'Gehaltsexplosion' ökonomisch erklärbar?," Edition HWWI: Chapters, in: Büch, Martin-Peter & Maennig, Wolfgang & Schulke, Hans-Jürgen (ed.), Sport und Sportgroßveranstaltungen in Europa - zwischen Zentralstaat und Regionen, volume 4, pages 79-110, Hamburg Institute of International Economics (HWWI).
    17. Egon Franck & Stephan Nüesch, 2005. "Talent, Past Consumption and/or Popularity - Are German Soccer Celebrities Rosen or Adler Stars?," Working Papers 0005, University of Zurich, Center for Research in Sports Administration (CRSA), revised 2006.
    18. David J. Berri & Rob Simmons, 2009. "Race and the Evaluation of Signal Callers in the National Football League," Journal of Sports Economics, , vol. 10(1), pages 23-43, February.
    19. Michael A. Roach, 2018. "Testing Labor Market Efficiency Across Position Groups in the NFL," Journal of Sports Economics, , vol. 19(8), pages 1093-1121, December.
    20. Velema, Thijs A., 2019. "Upward and downward job mobility and player market values in contemporary European professional football," Sport Management Review, Elsevier, vol. 22(2), pages 209-221.

    More about this item

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nsr:niesrd:339. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Library & Information Manager (email available below). General contact details of provider: https://edirc.repec.org/data/niesruk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.