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Does talent migration increase inequality? A quantitative assessment in football labour market

Chrysovalantis Vasilakis

Journal of Economic Dynamics and Control, 2017, vol. 85, issue C, 150-166

Abstract: I analyze the links between talent migration and cross-country inequality by exploiting the 1995 elimination of mobility restrictions on the European football labor market. I develop a simple model and employ an empirical dataset to estimate its parameters. Through simulation analysis, I compare actual data with a counterfactual no-mobility restriction trajectory, and conclude that the elimination of mobility barriers increases not only cross-country inequality by 25%, but also global output in the football economy by stimulating the production of new talent in Africa, Latin and Central America.

Keywords: International migration; Brain drain; Free mobility; Inequality; European football (search for similar items in EconPapers)
JEL-codes: F22 J61 (search for similar items in EconPapers)
Date: 2017
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Journal of Economic Dynamics and Control is currently edited by J. Bullard, C. Chiarella, H. Dawid, C. H. Hommes, P. Klein and C. Otrok

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