Faculty Sponsor(s)
Jeffrey A. Summers
Location
Jereld R. Nicholson Library
Subject Area
Economics
Description
This study identifies differences between the returns to skill for 50 PGA and 50 LPGA Tour golfers using a cross-sectional model. Our measure of returns to skill is a normalized earnings figure given by the total earnings for a golfer during the year divided by the sum of their earning potential. We estimate the returns to skill as a function of driving accuracy, driving distance, putting average, greens in regulation, number of events played, majors played, slope rating, and a dummy variable for gender. We find that the same skills are important for both PGA and LPGA golfers but to varying degrees. We conclude that putting and greens in regulation are the most important variables explaining winning percentage, but these skills are both relatively less important for LPGA players than for PGA players. We also find that driving accuracy is important in explaining winning percentage, and that the importance of this variable is the same for PGA and LPGA players. Our results can be used by golfers to focus their practice time on the skills that may affect their return.
Recommended Citation
Smith, Alexandria E. and Hunsaker, Michon E., "The Relative Returns to Skill of PGA and LPGA Players" (2014). Linfield University Student Symposium: A Celebration of Scholarship and Creative Achievement. Event. Submission 33.
https://digitalcommons.linfield.edu/symposium/2014/all/33
The Relative Returns to Skill of PGA and LPGA Players
Jereld R. Nicholson Library
This study identifies differences between the returns to skill for 50 PGA and 50 LPGA Tour golfers using a cross-sectional model. Our measure of returns to skill is a normalized earnings figure given by the total earnings for a golfer during the year divided by the sum of their earning potential. We estimate the returns to skill as a function of driving accuracy, driving distance, putting average, greens in regulation, number of events played, majors played, slope rating, and a dummy variable for gender. We find that the same skills are important for both PGA and LPGA golfers but to varying degrees. We conclude that putting and greens in regulation are the most important variables explaining winning percentage, but these skills are both relatively less important for LPGA players than for PGA players. We also find that driving accuracy is important in explaining winning percentage, and that the importance of this variable is the same for PGA and LPGA players. Our results can be used by golfers to focus their practice time on the skills that may affect their return.
