Career lotto: labor supply in winner-take-all markets / Wayne Grove (Le Moyne College), Michael Jetter (University of Western Australia, IZA and CESifo), Kerry L. Papps (University of Bath and IZA) ; IZA Institute of Labor Economics
VerfasserGrove, Wayne A. ; Jetter, Michael ; Papps, Kerry L.
KörperschaftForschungsinstitut zur Zukunft der Arbeit
ErschienenBonn, Germany : IZA Institute of Labor Economics, December 2018
Elektronische Ressource
Umfang1 Online-Ressource (40 Seiten) : Diagramme
SerieDiscussion paper ; no. 12012
 Das Dokument ist öffentlich zugänglich im Rahmen des deutschen Urheberrechts.
Career lotto: labor supply in winner-take-all markets [1.06 mb]
Verfügbarkeit In meiner Bibliothek
Zusammenfassung (Englisch)

Are people prone to selecting occupations with highly skewed income distributions despite minuscule chances of success? Assembling a comprehensive pool of potential teenage entrants into professional tennis (a typical winner-take-all market), we construct objective measures of relative ability and earnings projections. We find that prospective tennis professionals are attracted to right-skewed earnings distributions, independent of mean and variance. If skewness in prize money fell to zero, males would be 23% and females 5% less likely to continue pursuing a professional career, on average. Thus, winner-takeall labor markets appear to systematically encourage those with modest talents to pursue long-shot careers.