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| Stephan Nüesch |
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| ''A note on the endogeneity of the pay-performance relationship in professional soccer'' |
| ( 2009, Vol. 29 No.3 ) |
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| Torgler and Schmidt (2007) have recently found a positive impact of pay on player performance in German soccer, measured by the number of goals and assists scored within a season. This note shows that their result is spurious as both a player's wage and goal/assist scoring are driven by individual playing abilities. Holding the (unobserved) time-invariant and the varying talent of a player constant, the positive pay-performance link is no longer statistically significant. In professional soccer, wages seem to buy talent rather than motivation. |
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| Keywords: |
JEL: J3 - Wages, Compensation, and Labor Costs: General
J4 - Particular Labor Markets: General |
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| Manuscript Received : Jul 14 2009 | | Manuscript Accepted : Jul 31 2009 |
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