The Returns to Scarce Talent

Abstract

The authors investigate the salary returns to the ability to play association football (soccer) 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, the authors find robust evidence of a substantial salary premium for two-footed ability, even after controlling for available player performance measures. The authors assess how this premium varies across the salary distribution and by player position.

Money Talks: Team Variables and Player Positions that Most Influence the Market Value of Professional Male Footballers in Europe

“…Age [1][2][3], the player's position [4][5][6], sport performance (as goals scored, passes, assistances, etc.) [7][8][9], and physical characteristics [1][2][3][4][5][6][7][8][9][10] are highly studied variables used by managers for hiring and for the player's salary. Moreover, other studies point out that variables that are little related to sport, such as nationality [11][12][13] or the popularity of the player [14,15], can influence on signing a player.…”

Are Workers Rewarded for Inconsistent Performance?

“…Within sports, researchers have focused largely on Mincer's wage equation to model salary outcomes, where age, experience, position, national team selection, team effects, country of origin, and performance have been used to determine salaries. Bryson, Frick, and Simmons (2013) find that age, height, goals per game, international appearances, and two-footedness increase salaries. In general, offensive players earn more (Lucifora & Simmons, 2003).…”

“…In addition, we use dummies for non-European players, for positions (defender, midfield, forward), and for teams. Along the lines of numerous papers that have used the Mincer wage regression, we expect age and the number of career games to have a positive yet diminishing (i.e., concave) effect on salaries (Bryson et al, 2013). Appearance in the national team represents both a selection and signaling effect, which will also have a positive effect on salaries.…”

Power, Muscle, and Take-Off Asymmetry in Young Soccer Players

“…Considering the ever-increasing pace of the game, players who are able to play with both legs have an advantage [10,11]. Therefore, players who use both legs 2 of 13 are more useful in the game and they are much more valuable for the team than players with one leg preference [12]. According to some studies, the ability of players to play with both legs increases considerably with the increasing level of players and the time of performed intense training [13].…”