Abstract
This chapter proposes a market test for racial discrimination in salary setting in English league soccer over the period 1978–93 using a balanced panel of 39 clubs. If there is a competitive market for the services of players, the wage bill of the club will reflect their productivity and hence the performance of the club in the league. Discrimination can be said to exist if clubs fielding an above-average proportion of black players systematically outperform clubs with a below-average proportion of black players, after one controls for the wage bill. Statistically significant evidence of discrimination in this sense is found.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Similar content being viewed by others
References
Arellano, M. & Bond, S. (1998). “Dynamic Panel Data Estimation Using DPD98 for Gauss: A Guide for Users.” Working paper, London: Inst. Fiscal Studies, 1998.
Arrow, K. J. (1973) The theory of discrimination, in O. Ashenfelter & A. Rees. (eds), Discrimination in Labor Markets, Princeton University Press, Princeton, NJ.
Arrow, K. J. “What Has Economics to Say about Racial Discrimination?” Econ. Perspec-tives 12 (Spring 1998): 91–100.
Atkinson, Scott E., Stanley, Linda R., and Tschirhart, John. “Revenue Sharing as an Incentive in an Agency Problem: An Example from the National Football League.” Rand J. Econ. 19 (Spring 1988): 27–43.
Audas, Richard, Goddard, John, and Dobson, Stephen. “Team Performance and Managerial Change in the English Football League.” Econ. Affairs 17 (September 1997): 30–36.
Ayres, Ian, and Waldfogel, Joel. “A Market Test for Race Discrimination in Bail Setting.” Stanford Law Rev. 46 (May 1994): 987–1047.
Becker, Gary S. The Economics of Discrimination. Chicago: Univ. Chicago Press, 1957.
Cairns, John, Jennett, Nicholas, and Sloane, Peter J. “The Economics of Profes-sional Team Sports: A Survey of Theory and Evidence.” J. Econ. Studies 13, no. 1 (1986): 1–80.
El-Hodiri, Mohamed, and Quirk, James. “An Economic Model of a Professional Sports League.” J.P.E. 79 (November/December 1971): 1302–19.
Fort, Rodney, and Quirk, James. “Cross Subsidization, Incentives, and Outcomes in Professional Team Sports Leagues.” J. Econ. Literature 33 (September 1995): 1265–99.
Gwartney, James, and Haworth, Charles. “Employer Costs and Discrimination: The Case of Baseball.” J.P.E. 82 (July/August 1974): 873–81.
Heckman, James J. “Detecting Discrimination.” J. Econ. Perspectives 12 (Spring 1998): 101–16.
Hoehn, Thomas, and Szymanski, Stefan. “The Americanization of European Football.” Econ. Policy, no. 28 (April 1999), pp. 203–40.
Hugman, Barry J. Football League Players Records, 1946–92. Taunton, U.K.: Tony Williams Publications, 1992.
Kahn, Lawrence M. “Discrimination in Professional Sports: A Survey of the Literature.” Indus, and Labor Relations Rev. 44 (April 1991): 395–418.
King, Jeff, and Kelly, John. The Cult ofthe Manager. London: Virgin Books, 1997.
Nardinelli, Clark, and Simon, Curtis. “A Direct Test of Customer Racial Discrimination.” Manuscript. Clemson, S.C.: Clemson Univ., 1989.
Scully, Gerald W. “Managerial Efficiency and Survivability in Professional Team Sports.” Managerial and Decision Econ. 15 (September–October 1994): 403–11.
Sloane, Peter J. “The Economics of Professional Football: The Football Club as a Utility Maximiser.” Scottish J. Polit. Econ. 18 (June 1971): 121–46.
Szymanski, Stefan. “A Market Test for Discrimination in the English Profes-sional Soccer Leagues.” Discussion paper. London: Imperial Coll., Management School, 1998.
Szymanski, Stefan. “The Market for Soccer Players in England after Bosnian: Winners and Losers.” In Player Market Regulation in Professional Team Sports, edited by Stefan Késenne and Claude Jeanrenaud. Antwerp: Standaard Uitgeverij, 1999.
Szymanski, Stefan, and Kuypers, Tim. Winners and Losers: The Business Strategy of Football. London: Penguin Books, 1999.
Szymanski, Stefan, and Smith, Ron. “The English Football Industry: Profit, Performance and Industrial Structure.” Internat. Rev, Appl. Econ. 11 (January 1997): 135–53.
Vrooman, John. “A Unified Theory of Capital and Labor Markets in Major League Baseball.” Southern Econ. J. 63 (January 1997): 594–619.
Williams, John. “Lick My Boots: Racism in English Football.” Manuscript. Leicester: Leicester Univ., Sir Norman Chester Centre Football Res., 1994.
Author information
Authors and Affiliations
Copyright information
© 2010 Stefan Szymanski
About this chapter
Cite this chapter
Szymanski, S. (2010). A Market Test for Discrimination in the English Professional Soccer Leagues. In: Football Economics and Policy. Palgrave Macmillan, London. https://doi.org/10.1057/9780230274266_6
Download citation
DOI: https://doi.org/10.1057/9780230274266_6
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-31259-7
Online ISBN: 978-0-230-27426-6
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)