Internal Promotion in Competitive Sports: Evidence from the English Premier League
The analysis of English Premier League clubsí reliance on internal versus external sources for new additions to the Örst-team is motivated by relevant labor economics literature. We consider two dimensions for analysis: (i) the extensive margin that drives the selection of youth players in the Örst team, and (ii) the intensive margin that looks at their career lifespan once selected. Two uniquely created data sets are utilized to establish robust results in support of the notion that more reputable youth programs provide greater Örst-team opportunities through internal hiring. Foreign sourced players become more prevalent in the league after the Bosman ruling, and their probability of selection is positively correlated with club stature. Survival analysis results validate prior results in terms of youth training reputation of certain clubs, and establishes a presence of heterogeneity at youth club level that signals di§erences in player career prospects generated by their youth training. Further, when the unobserved heterogeneity is modelled using discrete Önite mixtures we get new insights into the role unobservables in the analysis. In particular, two types of players are identiÖed in the data, one type that represents 33% is the one that drives the exits of the youth players. In addition, this model shows that the Bosman ruling positively impacts the career duration of youth players, as opposed to its negative e§ect on Örst-team selection
|Keywords||internal promotion, external hiring, binary resposnse, models, Bosman ruling, duration models|
|Publisher||Department of Economics|
|Series||Carleton Economic Papers (CEP)|
Radoman, M., & Voia, M.-C. (2015). Internal Promotion in Competitive Sports: Evidence from the English Premier League (No. CEP 15-09). Carleton Economic Papers (CEP). Department of Economics.