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Career prospects and effort incentives: Evidence from professional soccer


Miklos-Thal, Jeanine; Ullrich, Hannes (2014). Career prospects and effort incentives: Evidence from professional soccer. SSRN 1431910, University of Zurich.

Abstract

It is difficult to empirically test the prediction that future career prospects create implicit efforts incentives because researchers cannot randomly "assign" career prospects to economic agents. To overcome this challenge, we use data from professional soccer, where employees of the same club face different external career opportunities depending on their nationality. We test whether the career prospect of being selected to a Euro Cup national team affects players' pre-Cup performances, using nationals of countries that did not participate in the Euro Cup as a control group. We find that the Euro Cup career prospect has positive effects on the performances of players with intermediate chances of being selected to their national team, but negative effects on the performances of players whose selection is very probable. Our findings have implications for the incentive effects of within-firm promotions and of external career opportunities.

It is difficult to empirically test the prediction that future career prospects create implicit efforts incentives because researchers cannot randomly "assign" career prospects to economic agents. To overcome this challenge, we use data from professional soccer, where employees of the same club face different external career opportunities depending on their nationality. We test whether the career prospect of being selected to a Euro Cup national team affects players' pre-Cup performances, using nationals of countries that did not participate in the Euro Cup as a control group. We find that the Euro Cup career prospect has positive effects on the performances of players with intermediate chances of being selected to their national team, but negative effects on the performances of players whose selection is very probable. Our findings have implications for the incentive effects of within-firm promotions and of external career opportunities.

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Additional indexing

Item Type:Working Paper
Communities & Collections:03 Faculty of Economics > Department of Business Administration
Dewey Decimal Classification:330 Economics
Language:English
Date:29 July 2014
Deposited On:30 Dec 2014 18:30
Last Modified:14 Apr 2016 14:57
Series Name:SSRN
Related URLs:http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1431910
Other Identification Number:merlin-id:10171
Permanent URL: https://doi.org/10.5167/uzh-102754

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