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PAPPS University of Bath, UK, and IZA Elevator pitch Economic theory has many predictions regarding how workers should be paid and how workplaces should be organized. However, economists' attempts to test these in the real world have been hampered by a lack of consistent information about workers' productivity levels. Professional sports offer a potential solution, since the performance of individual sportspeople is easily observed and yet many of the same problems faced by managers in workplaces still apply. In many ways, sportspeople may be less atypical of the modern workforce than farm laborers, doctors, or other groups of workers that are often scrutinized by economists. Key findings Pros Unlike most other skilled workers, it is possible to easily measure the productivity of many sportspeople. Since the rules of sports are known, the production function of the sports team—the "firm"—is clear. It is clear what information players have—and what incentives they face—when choosing how much effort to put in to their tasks. In team sports, it is clear which players play together at any point in time and how they interact. Cons Professional sportspeople may not be representative of workers in the wider labor market. Sportspeople and referees are scrutinized more than normal employees, which might change the way they behave. The organization of labor markets in some professional sports is idiosyncratic and differs from the labor markets for other occupations. Extreme levels of pay inequality exist in many professional sports compared to other occupations, due to the presence of superstars. Author's main message Decision makers in governments and firms may learn from the findings economists have uncovered using data on sportspeople's decisions. Professional sportspeople are arguably unique in that they are highly skilled and sometimes highly paid but also have easily measured productivity. As a consequence, it is possible to find answers to many important questions that are currently impossible to answer using data from conventional workplaces, such as how productivity is rewarded over the life cycle and the extent to which discrimination can reduce productivity. Download full article (PDF) This article first appeared on IZA World of Labor in October 2020. Reproduced with permission Tweet October 30, 2020 Print Article(s) by this author Sports at the vanguard of labor market policyLessons from sports can allow managers to develop better policies at "normal" workplaces October 30, 2020［From IZA］ Articles Column Special Series Newspapers & Magazines Fellows' Works VoxEU Column From IZA Perspectives from Around the World Other Contents RIETI Report Policy Update Keizai Sangyo Journal Communications Newsletter RSS Feed Facebook X YouTube Research Areas Research Programs (FY2024-2028) Research Programs (FY2020-2023) Research Programs (FY2016-2019) Research Programs (FY2011-2015) Policy Research Domains (FY2006-2010) Projects Survey Fellows Research/Policy Papers Discussion Papers (English) Discussion Papers (Japanese) Policy Discussion Papers (English) Policy Discussion Papers (Japanese) Technical Papers (English) Technical Papers (Japanese) Non Technical Summaries List of Articles in Journals Research Digest Discussion Papers Search Publications RIETI Books (English) RIETI Books (Japanese) History of Japan's Trade and Industry Policy Authors' Words Other Publications (English) Other Publications (Japanese) Events Symposiums Workshops BBL Seminars Archived Seminar Series Data JIP Database R-JIP Database CIP Database Industry-Specific Nominal and Real Effective Exchange Rates AMU and AMU Deviation Indicators JSTAR RIETI-TID RIETI FDI Database ICPA Project Links Articles Column Special Series Newspapers & Magazines Fellows' Works VoxEU Column From IZA Perspectives from Around the World Other Contents RIETI Report Policy Update Keizai Sangyo Journal (METI Journal) About RIETI Privacy Policy Site Policy Site Map Help Contact METI Web Site Research Institute of Economy, Trade and Industry, IAA (JCN 6010005005426)JCN: Japan Corporate Number Opinions expressed or implied on this website are solely those of the author, and do not necessarily represent the views of the Research Institute of Economy, Trade and Industry (RIETI).Titles, numbers, specific names, etc. on this website are as of the date of publication. 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