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Does Experience Matter? Salary Dispersion, Coaching, And Team Performance

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  • Anna Bykova
  • Dennis Coates

Abstract

Using Major League Soccer as a unique dataset, this study examines the direct and indirect role of coaches' experience in determining team performance. Inspired by labor market studies, we applied traditional indicators of team salary structure and, unlike previous studies, empirically test the hypothesis that coach experience affects the way in which team salary distribution influences performance. Our results suggest that coaches with experience as professional soccer players improve team performance directly but worsen the negative effect of a skewed salary distribution. Moreover, experience as a player is more important than coaching experience. (JEL D3, J3, M5)

Suggested Citation

  • Anna Bykova & Dennis Coates, 2020. "Does Experience Matter? Salary Dispersion, Coaching, And Team Performance," Contemporary Economic Policy, Western Economic Association International, vol. 38(1), pages 188-205, January.
    • Handle: RePEc:bla:coecpo:v:38:y:2020:i:1:p:188-205
    DOI: 10.1111/coep.12444
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    Cited by:

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    2. Scott M. Kaplan, 2024. "Leveling the playing field: The distributional impact of maximum‐ and minimum‐level contracts on player compensation," Contemporary Economic Policy, Western Economic Association International, vol. 42(2), pages 375-391, April.
    3. Marco Di Domizio & Carlo Bellavite Pellegrini & Raul Caruso, 2022. "Payroll dispersion and performance in soccer: A seasonal perspective analysis for Italian Serie A (2007–2021)," Contemporary Economic Policy, Western Economic Association International, vol. 40(3), pages 513-525, July.
    4. Francesco Addesa & Matteo Pazzona & Giambattista Rossi, 2022. "Migrant diversity and team performance in a high‐skilled labour market," Kyklos, Wiley Blackwell, vol. 75(3), pages 365-384, August.
    5. Thadeu Gasparetto & Angel Barajas, 2022. "Wage Dispersion and Team Performance: The Moderation Role of Club Size," Journal of Sports Economics, , vol. 23(5), pages 548-566, June.

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    More about this item

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics

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