A note on the endogeneity of the pay-performance relationship in professional soccer

Stephan Nuesch

Economics Bulletin, 2009, vol. 29, issue 3, 1850-1855

Abstract: Torgler and Schmidt (2007) have recently found a positive impact of pay on player performance in German soccer, measured by the number of goals and assists scored within a season. This note shows that their result is spurious as both a player's wage and goal/assist scoring are driven by individual playing abilities. Holding the (unobserved) time-invariant and the varying talent of a player constant, the positive pay-performance link is no longer statistically significant. In professional soccer, wages seem to buy talent rather than motivation.

JEL-codes: J3 J4 (search for similar items in EconPapers)
Date: 2009-07-31
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Citations: View citations in EconPapers (3)

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