Payroll dispersion and performance in soccer: A seasonal perspective analysis for Italian Serie A (2007–2021)

Marco Di Domizio, Carlo Bellavite Pellegrini and Raul Caruso ()

Contemporary Economic Policy, 2022, vol. 40, issue 3, 513-525

Abstract: This paper investigates the relevance of wage distributions among players in determining the seasonal performances of Italian Serie A teams. Using dispersion measures on weighted wages calculated from 2007 to 2021, we analyzed the relationship between pay dispersion and team performance over 14 seasons. The percentage of points at the end of the season served as the dependent variable, and panel data techniques revealed a statistically significant association of seasonal team performances with relative wages and a negative association with salary dispersion. The empirical results confirm that cohesion theory holds true for soccer teams in Italy, and therefore more equally weighted wages are associated with better on‐field performance.

Date: 2022
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https://doi.org/10.1111/coep.12566

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