Do High Wage Footballers Play for High Wage Teams?

9 Pages Posted: 20 Dec 2018

See all articles by Rachel Scarfe

Rachel Scarfe

University of Edinburgh - School of Economics

Carl Singleton

Department of Economics, University of Reading

Paul Telemo

University of Edinburgh

Date Written: December 7, 2018

Abstract

Intuition and sports knowledge suggest the best professional footballers play for the best teams, i.e. positive assortative matching between employer and employee on productivity. We use wage data for all players and teams in Major League Soccer between 2007 and 2017 and find that estimated player and team fixed wage effects are negatively correlated. This is a puzzle, which could be explained if players match to teams according to some compensating wage differential, for example from a desire to play for successful teams. The estimated wage premiums of teams are highly and negatively correlated with their success in the league (productivity).

Keywords: firm-specific wages, AKM wage equation, matching, superstar pay

JEL Classification: J31, J49, Z22

Suggested Citation

Scarfe, Rachel and Singleton, Carl and Telemo, Paul, Do High Wage Footballers Play for High Wage Teams? (December 7, 2018). Available at SSRN: https://ssrn.com/abstract=3297644 or http://dx.doi.org/10.2139/ssrn.3297644

Rachel Scarfe

University of Edinburgh - School of Economics ( email )

31 Buccleuch Place
Edinburgh, EH8 9JT
United Kingdom

Carl Singleton (Contact Author)

Department of Economics, University of Reading ( email )

Whiteknights
Reading, Berkshire RG6 6AH
United Kingdom

Paul Telemo

University of Edinburgh ( email )

Old College
South Bridge
Edinburgh, Scotland EH8 9JY
United Kingdom

Register to save articles to
your library

Register

Paper statistics

Downloads
8
Abstract Views
69
PlumX Metrics