This paper investigates the relationship between players’ wages and sport performance in the Italian top professional football league - Serie A. The analysis focuses on 14 seasons from 2001/2002 to 2014/2015. Findings show that aggregate wage expenditure is a robust predictor of success for Italian professional football teams. We first exploited a fixed-effects panel data and eventually we addressed the problem of endogeneity by providing a dynamic IV specification of the model. Based on the System-GMM framework, we employed a model including lagged terms of dependent variables and covariates as instruments to control for endogeneity as well as alternative exogenous instruments to control for geographical/environmental factors and socio-economic factors that could be the actual predictors of performance through an indirect effect on payroll.

Rossignoli, D., Caruso, R., Domizio, M. D. D., Aggregate wages of players and performance in Italian Serie A, <<ECONOMIA POLITICA>>, 2017; 34 (1): 515-531. [doi:10.1007/s40888-017-0062-6] [http://hdl.handle.net/10807/97976]

Aggregate wages of players and performance in Italian Serie A

Rossignoli, Domenico
Primo
;
Caruso, Raul
Secondo
;
2017

Abstract

This paper investigates the relationship between players’ wages and sport performance in the Italian top professional football league - Serie A. The analysis focuses on 14 seasons from 2001/2002 to 2014/2015. Findings show that aggregate wage expenditure is a robust predictor of success for Italian professional football teams. We first exploited a fixed-effects panel data and eventually we addressed the problem of endogeneity by providing a dynamic IV specification of the model. Based on the System-GMM framework, we employed a model including lagged terms of dependent variables and covariates as instruments to control for endogeneity as well as alternative exogenous instruments to control for geographical/environmental factors and socio-economic factors that could be the actual predictors of performance through an indirect effect on payroll.
Inglese
Rossignoli, D., Caruso, R., Domizio, M. D. D., Aggregate wages of players and performance in Italian Serie A, <>, 2017; 34 (1): 515-531. [doi:10.1007/s40888-017-0062-6] [http://hdl.handle.net/10807/97976]
File in questo prodotto:
File Dimensione Formato  
2017_aggregate wages_economia politica.pdf

non disponibili

Tipologia file ?: Versione Editoriale (PDF)
Licenza: Non specificato
Dimensione 459.69 kB
Formato Unknown
459.69 kB Unknown   Visualizza/Apri

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/10807/97976
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 6
  • ???jsp.display-item.citation.isi??? 6
social impact