Fading shooting stars: The relative age effect, misallocation of talent, and returns to training in German elite youth soccer

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This paper analyses the Relative Age Effect (RAE) in German elite youth soccer academies. We examine the efficiency of talent selection and the returns to training. Our results indicate a strong effect of players' birth dates on their probability of getting selected - and, thus, a waste of talent. Using data on 2,382 former elite youth players and their later market values, we find that clubs could generate 30.3 to 77.2% higher market values when eliminating the RAE. Our findings emphasize that distinguishing between current and potential performance levels is crucial for the efficient allocation of talent in sports and society.

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• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper Series in Economics ; No. 413

Classification and Topics

• Classification: Wirtschaft ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Sports Economics: Labor Issues ; Personnel Economics: Firm Employment Decisions; Promotions ; Personnel Economics: Training ; Education and Inequality ; Returns to Education ; Social Choice; Clubs; Committees; Associations
• Subject: Relative age effect ; market values ; misallocation of talent ; returns to training ; selection of talent ; elite youth soccer

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Tohoff, Lukas ; Mechtel, Mario
• Event: Veröffentlichung
• (who): Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre
• (where): Lüneburg
• (when): 2022

Further information

• Handle: http://hdl.handle.net/10419/273138