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Production Efficiency and Discriminatory Hiring Practices in the National Hockey League: A Stochastic Frontier Approach

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  • Leo Kahane

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Abstract

This paper studies the production process in the National Hockey League (NHL) and attempts to identify the sources of production inefficiency, including potential inefficiencies associated with preferences for, or against French-Canadians. Employing the method of stochastic frontier estimation, it is shown that production inefficiencies are prevalent in the NHL and can, in part, be traced to differences in coaching ability, team ownership, local sports competition, and management experience. In addition, it is found that teams with unusually high (or low) numbers of French-Canadian players tended to be less efficient, implying that discriminating hiring practices are costly. Copyright Springer 2005

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File URL: http://hdl.handle.net/10.1007/s11151-005-4400-4
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Bibliographic Info

Article provided by Springer in its journal Review of Industrial Organization.

Volume (Year): 27 (2005)
Issue (Month): 1 (08)
Pages: 47-71

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Handle: RePEc:kap:revind:v:27:y:2005:i:1:p:47-71

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Web page: http://www.springerlink.com/link.asp?id=100336

Related research

Keywords: Discrimination; efficiency; National Hockey League; production stochastic frontier;

References

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  1. Richard A. Hofler & James E. Payne, 2006. "Efficiency in the National Basketball Association: a stochastic frontier approach with panel data," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 27(4), pages 279-285.
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Cited by:
  1. M. Jara & D. Paolini, 2012. "Management Efficiency in Football: An Empirical Analysis of two Extreme Cases," Working Paper CRENoS 201222, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  2. Francisco González Gómez & Andrés J. Picazo Tadeo, 2008. "Can we be satisfied with our football team? Evidence from spanish professional football," ThE Papers 08/11, Department of Economic Theory and Economic History of the University of Granada..
  3. Young Hoon Lee, 2009. "Frontier Models and their Application to the Sports Industry," Working Papers 0903, Research Institute for Market Economy, Sogang University, revised 2009.
  4. Sue Bridgewater & Lawrence M. Kahn & Amanda H. Goodall, 2009. "Substitution Between Managers and Subordinates: Evidence from British Football," NCER Working Paper Series 51, National Centre for Econometric Research.
  5. Bernd Frick & Robert Simmons, 2007. "The Impact of Managerial Quality on Organizational Performance: Evidence from German Soccer," Working Papers 0708, International Association of Sports Economists & North American Association of Sports Economists.
  6. Mario Lackner, 2010. "And most of us go Pro in something other than Sports - Hiring Preferences and their Effect on the Labor Market for Collegiate Football Players," Economics working papers 2010-10, Department of Economics, Johannes Kepler University Linz, Austria.
  7. Leo Kahane & Neil Longley & Robert Simmons, 2013. "The Effects of Coworker Heterogeneity on Firm-Level Output: Assessing the Impacts of Cultural and Language Diversity in the National Hockey League," The Review of Economics and Statistics, MIT Press, vol. 95(1), pages 302-314, March.
  8. Bridgewater, Sue & Kahn, Lawrence M. & Goodall, Amanda H., 2011. "Substitution and complementarity between managers and subordinates: Evidence from British football," Labour Economics, Elsevier, vol. 18(3), pages 275-286, June.
  9. Del Corral, Julio, 2012. "Eficiencia en el deporte: Entrenadores en la Primera División del fútbol español 2009-2011/Efficiency in Sports: Coaches in the Spanish Football First Division 2009-2011," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 30, pages 545-564, Agosto.
  10. Young Hoon Lee, 2010. "The Effects of Management Practices on Productivity: Evidence from Baseball Team Production," Working Papers 1005, Research Institute for Market Economy, Sogang University, revised 2010.
  11. Carlos Pestana Barros & Stephanie Leach, 2006. "Performance evaluation of the English Premier Football League with data envelopment analysis," Applied Economics, Taylor & Francis Journals, vol. 38(12), pages 1449-1458.
  12. Wen-Jhan Jane & Wei-Hsin Kong & Yi-Hsiue Wang, 2010. "Individual efficiency and club performance: a panel analysis of professional baseball," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 31(5), pages 363-372.

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