Are Foreigners at Disadvantage in a Global Labor Market?

Abstract

We find evidence that being a foreigner decreases the chances of surviving (i.e., keeping the license) on the first season on the PGA TOUR. This phenomenon does not affect all foreigners equally—it is present amongst the non-elite group (those playing the second-tier tour), but we found no evidence amongst the elite group (those playing the first-tier tour). We discover that the international experience acquired by foreigners in other circuits prior to their arrival on the PGA TOUR mitigates this disadvantage. Not keeping the card has hazardous financial consequences for both the golfer and the corporations whose products he endorses.