Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/273138 
Year of Publication: 
2022
Series/Report no.: 
Working Paper Series in Economics No. 413
Publisher: 
Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre, Lüneburg
Abstract: 
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.
Subjects: 
Relative age effect
market values
misallocation of talent
returns to training
selection of talent
elite youth soccer
JEL: 
J24
Z22
M51
M53
I24
I26
D71
Document Type: 
Working Paper

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