Pay and Performance: An Examination of Texas High School Football Coaches

By Callan, Scott J.; Thomas, Janet M. | The Sport Journal, Fall 2008 | Go to article overview
Save to active project

Pay and Performance: An Examination of Texas High School Football Coaches


Callan, Scott J., Thomas, Janet M., The Sport Journal


Pay and Performance: An Examination of Texas High School Football Coaches

Over the past decade, economic investigations of professional sports teams--particularly pay-for-performance studies--have become increasingly prevalent. This emerging research trend has evolved in part because of the broad applicability of economic principles to sporting contexts and also because of the increasing availability of performance and salary data for professional sports participants. Although it has not always been the case, reliable data for selected amateur sports, such as NCAA golf, are also starting to become available, allowing researchers to apply economic reasoning to these varied and important sports environments. (Examples are Callan and Thomas, 2004, 2006, which are investigations of the determinants of success in amateur golf that employed two different samples of NCAA golfers.)

From a theoretical perspective, economic research on sports salaries and performance builds on human capital theory, as first suggested by Becker (1964). Critical to this theory is the belief that education and experience play a significant role in the determination of a worker's performance and earnings. Simply stated, investments in human capital, such as education, training, and work-related experience, are expected to positively influence compensation.

As for the empirical testing of these theoretical models, most salary investigations within the professional sports literature have focused on individual players as opposed to coaches or managers. It is also the case that most used an earnings function model similar to the one developed by Scully (1974), who studied salary determinants for Major League Baseball players. Consistent with Becker's (1964) fundamental hypothesis, Scully's model assumes that a professional baseball player's development of human capital and skill are critical determinants of his earnings. Since Scully's original work, numerous studies have adapted his model to other sports settings. For example, Jones and Walsh (1988) examined salary determination for players in the National Hockey League, and Hamilton (1997) did the same for players in the National Basketball Association.

Despite the accumulating research on players' salaries in various sports, we know of only two papers that adapted Scully's (1974) original model to an examination of the earnings of team managers or coaches. One is a study by Kahn (1993), and the other is an investigation conducted by Humphreys (2000). A brief overview of each follows.

Kahn (1993) used 1987 data for professional baseball teams to estimate an earnings function for team managers, which in turn was used to analyze managerial quality. Following human capital theory, Kahn's model specifies earnings as the natural log of manager salary and includes the following as explanatory variables: years of managerial experience; lifetime winning percentage; and a binary variable to control for league (i.e., American or National). Kahn asserts that there are at least two reasons why experience is expected to have a positive effect on earnings. Specifically, more years of experience should reflect (a) greater skills, developed through on-the-job training, and (b) longevity, based on relatively high-quality management ability exhibited over time. Winning percentage captures team performance or success, which also should positively affect earnings, and the binary league variable controls for any league-specific differences in the demand for managerial quality. As expected, Kahn's results showed that a manager's experience level and career winning percentage have significant and positive effects on salary, although the league variable was not found to be statistically significant.

Humphreys (2000) used Division I NCAA basketball program data for the 1990-1991 academic year to test for possible gender-based differences in compensation among head basketball coaches.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

Pay and Performance: An Examination of Texas High School Football Coaches
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?