THE COMPETITIVE RETURNS TO THE GLOBAL SEARCH FOR TALENT: PROFESSIONAL SPORTS MARKETS AND FOREIGNERS

Martin Schmidt

Economic Inquiry, 2021, vol. 59, issue 1, 396-419

Abstract: We examine the geographical and racial diversity of a market's labor supply. While the likely impact of expanding supply is to increase the level of productivity, it is not obvious what impact the expansion would have on the overall level of competition. If the added labor increases productivity differentials or are disproportionately populated on high achieving firms, then the likely result would be greater imbalance. We find that while increases in the foreign‐born component are associated with an increase in the overall level of competition, the impact has diminished across time. (JEL C22, D23, D30)

Date: 2021
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