Productivity shocks and labour market outcomes for top earners: evidence from Italian Serie A

Vincenzo Carrieri, Andrew Jones, Francesco Principe

Research output: Contribution to journalArticleResearchpeer-review

Abstract

How are top earners affected by productivity shocks? We address this question using a unique longitudinal data set on the universe of professional football players in the Italian Serie A, representing 20% of top earners in Italy. We use traumatic injuries and adopt an IV strategy to provide causal estimates of the impact of productivity shocks on several labour market outcomes. We find that a 30-day injury substantially affects the probability of contract renegotiation and reduces net wages by around 12%. We show that this large penalty is due to employer's precautionary motives rather than to shock-induced reduction in current player's performance.

Original languageEnglish
Pages (from-to)549-576
Number of pages28
JournalOxford Bulletin of Economics and Statistics
Volume82
Issue number3
DOIs
Publication statusPublished - Jun 2020

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