IDEAS home Printed from https://ideas.repec.org/a/sae/jospec/v8y2007i1p83-98.html
   My bibliography  Save this article

Labor Supply on the PGA TOUR

Author

Listed:
  • Thomas A. Rhoads

    (Towson University)

Abstract

The unique nature of the PGA TOUR allows exempt players to have a large measure of discretion in the number of tournaments they enter in a given year. Recent policy changes on the PGA TOUR suggest that TOUR players may be responsive to exemption status and expected earnings. Using the previous year’s real earnings per event as a proxy for expected earnings and controlling for player effects and exemption status, ordinary least squares results indicate that players’ annual entry decisions change with an exemption status change but not with higher expected earnings. An exempt, non-elite PGA TOUR player whose exemption is set to expire in at least 2 years enters slightly fewer tournaments, whereas an increase in expected earnings has no effect on tournaments entered. This suggests that the PGA TOUR would do well not to ignore possible effects of future policy changes on player annual entry decisions.

Suggested Citation

  • Thomas A. Rhoads, 2007. "Labor Supply on the PGA TOUR," Journal of Sports Economics, , vol. 8(1), pages 83-98, February.
    • Handle: RePEc:sae:jospec:v:8:y:2007:i:1:p:83-98
    DOI: 10.1177/1527002505279343
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/1527002505279343
    Download Restriction: no
    File URL: https://libkey.io/10.1177/1527002505279343?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. David J. Berri & Martin B. Schmidt & Stacey L. Brook, 2004. "Stars at the Gate," Journal of Sports Economics, , vol. 5(1), pages 33-50, February.
    2. Rodney Fort & James Quirk, 1995. "Cross-subsidization, Incentives, and Outcomes in Professional Team Sports Leagues," Journal of Economic Literature, American Economic Association, vol. 33(3), pages 1265-1299, September.
    3. James G. Lynch & Jeffrey S. Zax, 2000. "The Rewards to Running," Journal of Sports Economics, , vol. 1(4), pages 323-340, November.
    4. Ronald L. Moy & Thomas Liaw, 1998. "Determinants of Professional Golf Tournament Earnings," The American Economist, Sage Publications, vol. 42(1), pages 65-70, March.
    5. Stefan Szymanski, 2010. "The Economic Design of Sporting Contests," Palgrave Macmillan Books, in: The Comparative Economics of Sport, chapter 1, pages 1-78, Palgrave Macmillan.
    6. Hausman, Jerry A & Leonard, Gregory K, 1997. "Superstars in the National Basketball Association: Economic Value and Policy," Journal of Labor Economics, University of Chicago Press, vol. 15(4), pages 586-624, October.
    7. John Martin, 2001. "Golf Tournaments And Ceo Pay—Unraveling The Mysteries Of Executive Compensation," Journal of Applied Corporate Finance, Morgan Stanley, vol. 14(3), pages 22-34, September.
    8. Peter Nero, 2001. "Relative Salary Efficiency of Pga Tour Golfers," The American Economist, Sage Publications, vol. 45(2), pages 51-56, October.
    9. Ehrenberg, Ronald G & Bognanno, Michael L, 1990. "Do Tournaments Have Incentive Effects?," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1307-1324, December.
    10. Donald L. Alexander & William Kern, 2005. "Drive for Show and Putt for Dough?," Journal of Sports Economics, , vol. 6(1), pages 46-60, February.
    11. Gerald W. Scully, 2002. "The Distribution of Performance and Earnings in a Prize Economy," Journal of Sports Economics, , vol. 3(3), pages 235-245, August.
    12. Ronald G. Ehrenberg & Michael L. Bognanno, 1990. "The Incentive Effects of Tournaments Revisited: Evidence from the European PGA Tour," ILR Review, Cornell University, ILR School, vol. 43(3), pages 74, April.
    13. Michael T. Maloney & Robert E. McCormick, 2000. "The Response of Workers to Wages in Tournaments," Journal of Sports Economics, , vol. 1(2), pages 99-123, May.
    14. Patrick James Rishe, 2001. "Differing Rates of Return to Performance," Journal of Sports Economics, , vol. 2(3), pages 285-296, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Matthew Hood, 2008. "Consistency on the PGA Tour," Journal of Sports Economics, , vol. 9(5), pages 504-519, October.
    2. Puterman Martin L & Wittman Stefan M, 2009. "Match Play: Using Statistical Methods to Categorize PGA Tour Players' Careers," Journal of Quantitative Analysis in Sports, De Gruyter, vol. 5(1), pages 1-63, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Markus LANG & Alexander RATHKE & Marco RUNKEL, 2010. "The Economic Consequences Of Foreigner Rules In National Sports Leagues," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 31, pages 47-64.
    2. Helmut Dietl & Egon Franck & Martin Grossmann & Markus Lang, 2009. "Contest Theory and its Applications in Sports," Working Papers 0029, University of Zurich, Center for Research in Sports Administration (CRSA).
    3. Stephen Shmanske, 2007. "Consistency or Heroics: Skewness, Performance, and Earnings on the PGA TOUR," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 35(4), pages 463-471, December.
    4. Scott J. Callan & Janet M. Thomas, 2007. "Modeling the Determinants of a Professional Golfer's Tournament Earnings," Journal of Sports Economics, , vol. 8(4), pages 394-411, August.
    5. Feddersen, Arne & Humphreys, Brad & Soebbing, Brian, 2012. "Cost Incentives in European Football," Working Papers 2012-13, University of Alberta, Department of Economics.
    6. Thierry Lallemand & Robert Plasman & François Rycx, 2008. "Women and Competition in Elimination Tournaments," Journal of Sports Economics, , vol. 9(1), pages 3-19, February.
    7. Stephen Shmanske, 2008. "Skills, Performance, and Earnings in the Tournament Compensation Model," Journal of Sports Economics, , vol. 9(6), pages 644-662, December.
    8. Brian Hill, 2014. "The Heat Is On," Journal of Sports Economics, , vol. 15(4), pages 315-337, August.
    9. Thierry Lallemand & Robert Plasman & François Rycx, 2005. "Women and competition in elimination tournaments: evidence from professional tennis data," DULBEA Working Papers 05-19.RS, ULB -- Universite Libre de Bruxelles.
    10. Benno Torgler & Markus Schaffner & Bruno S. Frey & Sascha L. Schmidt, 2008. "Looking Awkward When Winning and Foolish When Losing: Inequity Aversion and Performance in the Field," IEW - Working Papers 369, Institute for Empirical Research in Economics - University of Zurich.
    11. Benno Torgler & Markus Schaffner & Bruno S. Frey & Sascha L. Schmidt & Uwe Dulleck, 2008. "Inequality Aversion and Performance in and on the Field," CREMA Working Paper Series 2008-18, Center for Research in Economics, Management and the Arts (CREMA).
    12. Bernd Frick, 2003. "Contest Theory and Sport," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 19(4), pages 512-529, Winter.
    13. XiaoGang Che & Brad R. Humphreys, 2013. "Earnings and performance in women’s skiing," Chapters, in: Eva Marikova Leeds & Michael A. Leeds (ed.), Handbook on the Economics of Women in Sports, chapter 6, pages 115-131, Edward Elgar Publishing.
    14. Brad Humphreys & Bernd Frick, 2019. "Prize Structure and Performance: Evidence from NASCAR," Economies, MDPI, vol. 7(4), pages 1-13, October.
    15. Torgler, Benno & Schmidt, Sascha L & Frey, Bruno S., 2006. "The Power of Positional Concerns: A Panel Analysis," Berkeley Olin Program in Law & Economics, Working Paper Series qt1z14v7zt, Berkeley Olin Program in Law & Economics.
    16. Stefan Szymanski, 2010. "The Economic Design of Sporting Contests," Palgrave Macmillan Books, in: The Comparative Economics of Sport, chapter 1, pages 1-78, Palgrave Macmillan.
    17. Lawrence M. Kahn, 2000. "The Sports Business as a Labor Market Laboratory," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 75-94, Summer.
    18. Keith F. Gilsdorf & Vasant A. Sukhatme, 2008. "Testing Rosen's Sequential Elimination Tournament Model," Journal of Sports Economics, , vol. 9(3), pages 287-303, June.
    19. Ferdi Botha & Gavin Fraser & Thomas A. Rhoads, 2021. "Skill and Earnings Amongst Golfers on the Southern‐African Sunshine Tour," South African Journal of Economics, Economic Society of South Africa, vol. 89(2), pages 274-281, June.
    20. Trung Minh Dang & Ross Booth & Robert Brooks & Adi Schnytzer, 2015. "Do TV Viewers Value Uncertainty of Outcome? Evidence from the Australian Football League," The Economic Record, The Economic Society of Australia, vol. 91(295), pages 523-535, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:jospec:v:8:y:2007:i:1:p:83-98. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.