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Who are the champions? Inequality, economic freedom and the Olympics

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  • Kufenko, Vadim
  • Geloso, Vincent
Abstract
Does inequality affect outcomes? To answer, we use the microcosm of Olympic competitions by asking whether a country's level of inequality diminishes its performance. 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 talents of individuals at the bottom of the income distribution (potential athletes otherwise constrained in the ability to expend resources on training). These effects mitigate those of inequality. The incentives that promote investments in skills across the income distribution are weaker in unfree societies and they cannot mitigate the effects of inequality. Using the Olympics of 2016 in combination with the Economic Freedom data, we find that inequality only matters in determining medal numbers for unfree countries. We link these results to inequality and its effects on economic outcomes.

Suggested Citation

  • Kufenko, Vadim & Geloso, Vincent, 2021. "Who are the champions? Inequality, economic freedom and the Olympics," Journal of Institutional Economics, Cambridge University Press, vol. 17(3), pages 411-427, June.
    • Handle: RePEc:cup:jinsec:v:17:y:2021:i:3:p:411-427_4
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    References listed on IDEAS

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. What sport can tell us about inequality
      by Johan Fourie in Johan Fourie's Blog on 2020-11-23 06:00:49

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    Cited by:

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    3. Anna Bykova & Dennis Coates, 2022. "Professional team sporting success: do economic and personal freedom provide competitive advantages?," Economics of Governance, Springer, vol. 23(3), pages 323-358, December.
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    6. Justin T. Callais & Vincent Geloso, 2023. "Intergenerational income mobility and economic freedom," Southern Economic Journal, John Wiley & Sons, vol. 89(3), pages 732-753, January.

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    More about this item

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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