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Contribution Details
| Type | Journal Article |
| Scope | Discipline-based scholarship |
| Title | A Note on the Endogeneity of Pay-Performance Relationship in Professional Soccer |
| Organization Unit | |
| Authors |
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| Item Subtype | Original Work |
| Refereed | Yes |
| Status | Published in final form |
| Language |
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| Journal Title | Economics Bulletin |
| Publisher | Economics Bulletin |
| Geographical Reach | international |
| ISSN | 1545-2921 |
| Volume | 29 |
| Number | 3 |
| Page Range | 1852 - 1857 |
| Date | 2009 |
| Abstract Text | Torgler and Schmidt (2007) have recently found a positive impact of pay on player performance in German soccer, measured by the number of goals and assists scored within a season. This note shows that their result is spurious as both a player's wage and goal/assist scoring are driven by individual playing abilities. Holding the (unobserved) timeinvariant and the varying talent of a player constant, the positive pay-performance link is no longer statistically significant. In professional soccer, wages seem to buy talent rather than motivation. |
| Official URL | http://www.economicsbulletin.com/ |
| Other Identification Number | merlin-id:897 |
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