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Firm-Specific Human Capital, Job Matching, and Turnover: Evidence from Major League Baseball, 1900-1992

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  • Glenn, Andrew
  • McGarrity, Joseph P
  • Weller, Jim

Abstract

The two dominant labor market turnover hypotheses, the firm-specific human capital model (FSHCM) and the job-matching model, suggest different patterns of player mobility in major league baseball. The matching hypothesis predicts greater mobility of players in positions that require substantial team production. A better match may offer large productivity gains. Alternately, the FSHCM predicts players in positions requiring the greatest amount of teamwork will benefit from specific knowledge, making them less likely to change teams. We examine the frequency distribution of trades by player position from 1900-92 and find the FSHCM provides the best explanation for turnover in this industry. Copyright 2001 by Oxford University Press.

Suggested Citation

  • Glenn, Andrew & McGarrity, Joseph P & Weller, Jim, 2001. "Firm-Specific Human Capital, Job Matching, and Turnover: Evidence from Major League Baseball, 1900-1992," Economic Inquiry, Western Economic Association International, vol. 39(1), pages 86-93, January.
    • Handle: RePEc:oup:ecinqu:v:39:y:2001:i:1:p:86-93
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    Cited by:

    1. Boris Groysberg & Linda-Eling Lee & Ashish Nanda, 2008. "Can They Take It With Them? The Portability of Star Knowledge Workers' Performance," Management Science, INFORMS, vol. 54(7), pages 1213-1230, July.
    2. Yamamura, Eiji & Ohtake, Fumio, 2021. "Firm-specific human capital in different market conditions: Evidence from the Japanese football league," Japan and the World Economy, Elsevier, vol. 58(C).
    3. Daniel H. Weinberg, 2013. "Talent Recruitment and Firm Performance: The Business of Major League Sports," Working Papers 13-54r, Center for Economic Studies, U.S. Census Bureau, revised Feb 2014.
    4. T S Mkhabela, 2009. "Measuring Managerial Efficiency in South African Soccer," Studies in Economics and Econometrics, Taylor & Francis Journals, vol. 33(3), pages 1-18, December.
    5. Daniel H. Weinberg, 2016. "Talent Recruitment and Firm Performance," Journal of Sports Economics, , vol. 17(8), pages 832-862, December.
    6. Daniel H. Weinberg, 2013. "Talent Recruitment and Firm Performance: The Business of Major League Sports," Working Papers 13-54, Center for Economic Studies, U.S. Census Bureau, revised Feb 2014.

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