The effect of professional sports on the earnings of individuals: evidence from microeconomic data

This article examines the impact of professional sports franchises in labour markets using data from the March Supplement to the Current Population Survey (CPS) for workers employed in specific occupational groups in all large US cities from 1983 to 2002. Results from a standard wage model suggest that professional football franchises increase average hourly and weekly earnings of males employed in these occupations, but professional baseball franchises reduce them. These results support growing evidence that professional sports affect labour markets. However, the mixed nature of the association between sport and earnings provides little economic justification for government subsidies for professional sport.