Talent Development and Labour Market Integration: The Case of EU Football

52 Pages Posted: 14 Feb 2018

See all articles by Pehr-Johan Norbäck

Pehr-Johan Norbäck

Research Institute of Industrial Economics (IFN)

Martin Olsson

Research Institute of Industrial Economics (IFN)

Lars Persson

Research Institute of Industrial Economics (IFN); Centre for Economic Policy Research (CEPR)

Date Written: February 2018

Abstract

We analyse how the Bosman ruling changed the incentives for football clubs in the European Union (EU) to develop talents. We show that the stiffer bidding competition over star players after the Bosman ruling has spurred talent development primarily in EU countries without established top clubs. This, in turn, has had a positive impact on their junior and senior national teams' performance. However, the stiffer bidding competition has also led to a lower competitive balance in the Champions League, as non-established clubs prefer to sell their star players instead of challenging the top clubs. We provide empirical evidence consistent with these findings.

Keywords: Bosman ruling, Champions League, Sports industry, star players

JEL Classification: J44, L50, L83

Suggested Citation

Norbäck, Pehr-Johan and Olsson, Martin and Persson, Lars, Talent Development and Labour Market Integration: The Case of EU Football (February 2018). CEPR Discussion Paper No. DP12702, Available at SSRN: https://ssrn.com/abstract=3122364

Pehr-Johan Norbäck (Contact Author)

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

Martin Olsson

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

Lars Persson

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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