Estimating Baseball Salary Equations from 1961-2005: A Look at Changes in Major League Compensation
AbstractThis study estimates Major League Baseball (MLB) player salaries for three distinct periods of time. The data from the first time period, 1961 through 1973, were collected in 1974, but analysis of that set has never been published. During that period the reserve clause was fully in effect. The second period, 1974 through 1983, captures the early years of arbitration and free agency. The third period, 1999 through 2005, represents the modern era. The estimates specify that the salary productivity elasticities have increased over time for slugging average, player durability, and player consistency; this result indicates that over time owners have placed more value on these measures of player productivity. The model also implies that teams located in more densely populated areas are better able to compensate their players, particularly their pitchers. We conclude that our model explains salaries well in the 1961-1973 and 1999-2005 periods, but the regression estimates reveal a less pronounced relationship between the marginal revenue product and MLB wages in the early years of arbitration and free agency (1974-1983).
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Fitness Information Technology in its journal International Journal of Sport Finance.
Volume (Year): 3 (2008)
Issue (Month): 4 (November)
Contact details of provider:
Web page: http://www.fitinfotech.com/
Find related papers by JEL classification:
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Victor Matheson).
If references are entirely missing, you can add them using this form.