%0 Report
        %A Grove, Wayne A.
%A Jetter, Michael
%A Papps, Kerry L.
        %T Career Lotto: Labor Supply in Winner-Take-All Markets
        %D 2018
        %8 2018 Dec
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 12012
        %U https://www.iza.org/index.php/publications/dp12012
        %X Are people prone to selecting occupations with highly skewed income distributions despite minuscule chances of success? Assembling a comprehensive pool of potential teenage entrants into professional tennis (a typical winner-take-all market), we construct objective measures of relative ability and earnings projections. We find that prospective tennis professionals are attracted to right-skewed earnings distributions, independent of mean and variance. If skewness in prize money fell to zero, males would be 23% and females 5% less likely to continue pursuing a professional career, on average. Thus, winner-take-all labor markets appear to systematically encourage those with modest talents to pursue long-shot careers.
        %K winner-take-all markets
%K superstar markets
%K labor supply
%K human capital
%K gender differences
%K skewness preferences