nep-spo New Economics Papers
on Sports and Economics
Issue of 2018‒01‒22
two papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Health shocks and labour market outcomes: evidence from professional football By Carrieri, V.;; Jones, A.M.;; Principe, F.;
  2. Evaluating Crime as a Negative Externality of Hosting Mega-Events: Econometric Analysis of the 2012 London Summer Olympics By Nicholas Le

  1. By: Carrieri, V.;; Jones, A.M.;; Principe, F.;
    Abstract: The negative association between health shocks and labour market outcomes is a well-established finding in the health and labour economics literatures. However, due to lack of data, most of the contributions focus on elderly workers and analyse labour force participation as their main outcome. This paper uses traumatic injuries as a source of exogenous variation in professional football players’ health to provide estimates of the causal impact of a health shock on two main labour market outcomes: annual net wages and the probability of renegotiating the contract between club and player. We have built a unique longitudinal dataset recording information about wages, injuries and other characteristics of the universe of professional football players in the Italian Serie A from 2009 to 2014. We employ panel fixed effects models combined with an IV strategy, which uses the average number of yellow cards received by the team as an instrument. We find that injuries reduce the net wage in the following season by around 12%. This result is mainly driven by precautionary reasons due to the club’s concern about depreciation in the player’s human capital rather than by a direct effect of the shock on the player’s productivity.
    Keywords: health shocks; top incomes; football; panel data; instrumental variables;
    JEL: C26 D31 I1 J24 J31
    Date: 2018–01
  2. By: Nicholas Le (West Virginia University, Department of Economics)
    Abstract: Analysis of the benefits and the drawbacks of hosting large-scale sporting events like the Olympics or World Cup frequently ignore the effects of crime due to its relatively small economic impact in comparison to employment and consumption effects. Literature has frequently tied sporting events and tourism to crime, in addition to observing proximity effects on crime during sporting events. This research seeks to confirm both by implementing a difference-in-difference regression that can show whether crime increased during the Olympics, in particular in London boroughs which hosted venues for the Games. Ultimately, the research concludes that crime in London as a whole does increase although it is unable to find statistically significant evidence that crime increased in host boroughs at a magnitude larger than the general increase in crime in the city. Likely reasons we have been unsuccessful in pinpointing the location effects include data limitations (daily data would be superior to monthly data due to the dates during which the event was hosted) and the relatively small geographical size of each host borough, as well as their proximity to one another.
    Keywords: sporting events, economics, crime, olympics
    Date: 2018–01

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