Effort reduction of employer‐to‐employer changers: Empirical evidence from football

Daniel Weimar and Katrin Scharfenkamp

Managerial and Decision Economics, 2019, vol. 40, issue 3, 277-291

Abstract: We investigate changes in effort investment of employees who still fulfill a contract with their current employer but already signed a follow‐up contract with a new employer (employer‐to‐employer change). Because effort and outside contract assignments are hard to measure in firms, we use running data from professional football (n = 26,577) to proxy effort decisions. Fixed effect regressions reveal a statistically significant but weak reduction in a player's effort after signing a follow‐up contract with a new club. Because we find a statistically significant effort reduction in public sports, this effect might be even larger in less transparent labor markets.

Date: 2019
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https://doi.org/10.1002/mde.3001

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Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:40:y:2019:i:3:p:277-291

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