How important is luck in determining labor market outcomes? We address this question using a new dataset of all international test cricketers who debuted between 1950 and 1985. We present evidence that a player’s debut performance is strongly affected by an exogenous source of variation: whether the debut series is played at home or abroad. This allows us to identify the role of luck - factors unrelated to ability - in shaping future career outcomes. We find that players lucky enough to debut at home perform significantly better on debut. Moreover, debut performance has a large and persistent impact on long run career outcomes. We also make headway in empirically distinguishing between competing explanations for why exogenous initial conditions exercise a persistent impact on career performance
Sports economics is a well-established and dynamic area of study; a key component in the fields of sport management, sport science and sport studies, as well as in other areas of economics, finance and management. Covering amateur to professional sports, individual events and organised tournaments, this Handbook provides an authoritative contribution to the understanding of sport in the economy. The editors of The SAGE Handbook of Sports Economics have brought together a global team of respected scholars to create this benchmark collection of insights into sports economics. Each chapter includes a study of a specific context in which issues arise in sports economics, a critical presentation of its main theoretical contributions, an overview of current research findings, and an outline of enquiry for future research. PART I: The Nature and Value of the Sports System and Economy PART II: Amateur Sports Participation, Supply and Impact PART III: Professional Team Sports PART IV: Professional Sports Leagues PART V: Sports Events and their Impacts PART VI: Individual Sports PART VII: Future Research
Kurzarbeit (KA), Germany’s short-time work program, is widely credited with saving jobs and supporting domestic demand during the COVID-19 recession. We quantify the impact by exploiting state-level variation in exposure to the pandemic shock and KA take-up. We construct a shift-share measure of the labor demand shock and instrument KA take-up using the pre-existing, state-specific share of workers eligible for KA. We find, first, that KA was crucial in mitigating unemployment: absent its expansion the unemployment rate would have increased by an additional 3 pp on average at the trough of the recession. Second, KA also bolstered domestic demand: the contraction in consumption could have been 2 to 3 times larger absent the program. Finally, we provide preliminary evidence on the sensitivity of the medium-run reallocation of resources to the prevalence of jobretention schemes during the Global Financial Crisis.
The Q&A in this issue features seven questions about emerging markets and the financial crisis (by Ayhan Kose); the research summaries are "Tax Revenue Response to the Business Cycle" (by Cemile Sancak, Ricardo Velloso, and Jing Xing) and "Banking Crisis Resolution: Was this Time Different?" (by Luc Laeven and Fabian Valencia). The issue also lists the contents of the second issue of the IMF Economic Review, Volume 58 Number 2; visiting scholars at the IMF during October-December 2010; and recent IMF Working Papers and Staff Position Notes.
Growth in much of Sub-Saharan Africa is expected to remain strong, driven by efforts to invest in infrastructure and strong agricultural production. The current Ebola outbreak in Guinea, Liberia, and Sierra Leone is exacting a heavy toll, with spillovers to neighboring countries. External threats to the region's overall positive outlook include global financial conditions and a slowdown in emerging market growth.
A quirky look at India using popular economics Why does the stock exchange dip during a lunar eclipse? Why don’t cars with safety features lead to fewer injuries? Why did Nehru ignore the Chinese threat in the lead-up to the 1962 war? Why is it that a stranger might risk his life to save yours on one day, and a street full of passers-by might casually watch you bleed to death on another? Why did pollsters wrongly predict a BJP victory in 2004, and what was the real reason for their defeat? And why is India’s Independence Day not, in fact, on the day on which it’s celebrated? In pithy, sparkling, bite-sized chapters, economists Vivek Dehejia and Rupa Subramanya tackle these seeming mysteries and unearth the real reasons why ‘we are like this only’. The answers are entertaining and surprising at every turn, and reveal a picture of modern India as never seen before.
While women’s cricket, and women’s sport in general, has gained enormously in popularity in terms of both spectators and TV audiences, comparatively little is known about it and its participants, and there are few, if any, quantitative assessments of the game. The Economics of Gender and Sport: A Quantitative Analysis of Women’s Cricket fills that gap. The work analyses the different forms of cricket - Test cricket, One-day, T20 – and is based on the latest sets of available data. It seeks to answer questions such as how well female cricketers play, how well they are paid, who the superstars are, and how competitive women’s cricket is. It also examines more general issues which affect men’s cricket too, with the over-arching theme of this book being inequality. First, the chapters discuss inequality in the distribution of luck. The book discusses the importance of luck in cricket and suggests a way of distinguishing between luck and ability in determining match outcomes. Second there is access inequality, which means that players from certain groups have an advantage in terms of being chosen to play in representative teams. Third, there is inequality in tournament outcomes, and this carries implications for the degree of competitive balance in contests between teams. Fourth is the issue of inequality in the quality of umpiring in men’s and women’s cricket. Fifth, there is inequality between men and women in their respective remunerations as cricketeers. Lastly, there is inequality in performance between players: the book explains how batting and bowling averages can be adjusted to better reflect player performance. The volume will find an audience among advanced students and researchers in sports economics, sports-related and gender studies. More generally, it will appeal to lovers of cricket who wish to read about the game in terms which are more than simply anecdotal.
Economic growth in sub-Saharan Africa as a whole has fallen to its lowest level in 15 years, though with large variation among countries in the region. The sharp decline in commodity prices has severely strained many of the largest economies, including oil exporters Angola and Nigeria, and other commodity exporters, such as Ghana, South Africa, and Zambia. At the same time, the decline in oil prices has helped other countries continue to show robust growth, including Kenya and Senegal. A strong policy response to the terms-of-trade shocks is critical and urgent in many countries. This report also examines sub-Saharan Africa’s vulnerability to commodity price shocks, and documents the substantial progress made in financial develop, especially financial services based on mobile technologies.
Growth remained strong in the region in 2012, with regional GDP rates increasing in most countries (excluding Nigeria and South Africa). Projections point to a moderate, broad-based acceleration in growth to around 51⁄2 percent in 2013¬14, reflecting a gradually strengthening global economy and robust domestic demand. Investment in export-oriented sectors remains an important economic driver, and an agriculture rebound in drought-affected areas will also help growth. Uncertainties in the global economy are the main risk to the region’s outlook, but plausible adverse shocks would likely not have a large effect on the region’s overall performance.
Sub-Saharan Africa continues to record strong economic growth, despite the weaker global economic environment. Regional output rose by 5 percent in 2011, with growth set to increase slightly in 2012, helped by still-strong commodity prices, new resource exploitation, and the improved domestic conditions that have underpinned several years of solid trend growth in the region's low-income countries. But there is variation in performance across the region, with output in middle-income countries tracking more closely the global slowdown and with some sub-regions adversely affected, at least temporarily, by drought. Threats to the outlook include the risk of intensified financial stresses in the euro area spilling over into a further slowing of the global economy and the possibility of an oil price surge triggered by rising geopolitical tensions.
