| By: |
Kufenko, Vadim;
Geloso, Vincent |
| Abstract: |
Does a countrys level of inequality affect its ability to win Olympic medals?
If it does, is it conditional on institutional factors? We argue that the
ability of economically free societies to win medals will not be affected by
inequality. In these societies, institutions generate incentives to invest in
the talent pool of individuals at the bottom of the income distribution
(people who are otherwise constrained in the ability to expend resources on
athletic training). These effects cancel out those of inequality. In unfree
societies, the incentives that promote investments in skills across the income
distribution are weaker. Consequently, the effects of inequality on the
ability to win are stronger. Using the Olympics of 2012 and 2016 in
combination with the Economic Freedom of the World Index, we find that
inequality only matters in determining medal numbers for unfree countries. We
link these results to the debates on inequality. |
| Keywords: |
Olympics,Inequality,Economic Freedom,Institutions |
| JEL: |
D63 E02 O43 |
| Date: |
2019 |
| URL: |
http://d.repec.org/n?u=RePEc:zbw:hohdps:132019&r=all |