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Selection Biases in Sports Markets

Author

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  • Néstor Gandelman

    (Universidad ORT Uruguay, gandelman@ort.edu.uy)

Abstract

This article tests for the existence of two types of selection biases in sports markets. First, the better-educated players and players of higher socioeconomic background have better outside opportunities. If they decide to follow a professional soccer career, they must be truly good to compensate their higher opportunity costs. Second, if innate athletic talent is distributed equally among the population, we should not find any difference in the performance evaluation of White and non-White players. This potential difference provides a ‘‘market test’’ for discrimination. Using data on the Uruguayan Soccer League in the 2000 and 2001 seasons, we find evidence of these two types of selection biases. Our estimations show a positive relationship between education and performance, education and promotions, socioeconomic background and performance, socioeconomic background and promotions, and discrimination against non-White players in the national league but not with respect to international soccer markets.

Suggested Citation

  • Néstor Gandelman, 2009. "Selection Biases in Sports Markets," Journal of Sports Economics, , vol. 10(5), pages 502-521, October.
    • Handle: RePEc:sae:jospec:v:10:y:2009:i:5:p:502-521
    DOI: 10.1177/1527002509332237
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    References listed on IDEAS

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    Cited by:

    1. Bukstein, Daniel & Gandelman, Néstor, 2019. "Glass ceilings in research: Evidence from a national program in Uruguay," Research Policy, Elsevier, vol. 48(6), pages 1550-1563.
    2. Alberto Posso & Tim R. L. Fry & Michael Gangemi & George B. Tawadros, 2016. "¡Fútbol!," Journal of Sports Economics, , vol. 17(3), pages 219-233, April.
    3. Martin Grossmann, 2021. "Asymmetric Opportunities After an Unsuccessful Sports Career," Journal of Sports Economics, , vol. 22(5), pages 587-612, June.
    4. Jed DeVaro & Suman Ghosh & Cindy Zoghi, 2018. "Job Characteristics and Labor Market Discrimination in Promotions," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 57(3), pages 389-434, July.
    5. Himanshu Sharma & Anu G. Aggarwal, 2022. "Segmenting Reviewers Based on Reviewer and Review Characteristics," International Journal of Business Analytics (IJBAN), IGI Global, vol. 9(1), pages 1-20, January.

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    More about this item

    Keywords

    sports economics; selection; education;
    All these keywords.

    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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