The Effects of Elite Sports on Later Job Success

41 Pages Posted: 2 Dec 2014

See all articles by Ralf Dewenter

Ralf Dewenter

University of the Federal Armed Forces Hamburg - Department of Economics

Leonie Giessing

Heinrich Heine University Dusseldorf - Duesseldorf Institute for Competition Economics (DICE)

Date Written: December 2014

Abstract

This paper analyses the income effect of the participation in elite sports. To quantify the average difference in the monthly net income of former elite athletes and non-athletes we estimate sample average treatment effect scores (SATT) by using covariate nearest-neighbour matching (CVM). While our treatment group consists of formerly funded top-level athletes, the control group of non-athletes is drawn from the SOEP database. Matching takes place by socio-demographic variables as well as measures of personal qualities and attitudes. On average, former athletes receive higher incomes than similar non-athletes. The income premium for former team sports and male athletes is even higher. Comparing the income of former female athletes with male non-athletes, we find that the participation in elite sports closes the gender-wage gap. Our results are robust to variations in the specification and statistically as well economically significant.

Keywords: funding of elite sports, nearest-neighbor matching, job success, gender-wage gap

JEL Classification: C49; J30; L83

Suggested Citation

Dewenter, Ralf and Giessing, Leonie, The Effects of Elite Sports on Later Job Success (December 2014). SOEPpaper No. 705. Available at SSRN: https://ssrn.com/abstract=2532499 or http://dx.doi.org/10.2139/ssrn.2532499

Ralf Dewenter (Contact Author)

University of the Federal Armed Forces Hamburg - Department of Economics ( email )

Holstenhofweg 85
Hamburg, 22043
Germany

Leonie Giessing

Heinrich Heine University Dusseldorf - Duesseldorf Institute for Competition Economics (DICE) ( email )

Universitaetsstr. 1
Duesseldorf, NRW 40225
Germany

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