IDEAS home Printed from https://ideas.repec.org/a/sae/jospec/v10y2009i3p256-277.html
   My bibliography  Save this article

Determinants of Pay in the NHL

Author

Listed:
  • Claude Vincent

    (Laurentian University, cvincent@laurentian.ca)

  • Byron Eastman

    (Laurentian University)

Abstract

Using data from the pre-2004-2005 lockout period, we use quantile regression to estimate the earnings function of forwards and defensemen in the National Hockey League (NHL). We find that the explanatory power of Mincer's earnings equation is smaller for low-paid players than for high-paid stars. More importantly, we find significant differences in the returns to measures of performance and other variables across the conditional earnings distribution. Our estimation results suggest that the conditional expectation model used in previous studies misses some of the subtleties of the earnings determination process in professional hockey.

Suggested Citation

  • Claude Vincent & Byron Eastman, 2009. "Determinants of Pay in the NHL," Journal of Sports Economics, , vol. 10(3), pages 256-277, June.
  • Handle: RePEc:sae:jospec:v:10:y:2009:i:3:p:256-277
    DOI: 10.1177/1527002508327519
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/1527002508327519
    Download Restriction: no

    File URL: https://libkey.io/10.1177/1527002508327519?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Leo Kahane, 2001. "Team and player effects on NHL player salaries: a hierarchical linear model approach," Applied Economics Letters, Taylor & Francis Journals, vol. 8(9), pages 629-632.
    2. Marc Lavoie, 2003. "The Entry Draft in the National Hockey League: Discrimination, Style of Play, and Team Location," American Journal of Economics and Sociology, Wiley Blackwell, vol. 62(2), pages 383-405, April.
    3. Brian P. Poi, 2004. "From the help desk: Some bootstrapping techniques," Stata Journal, StataCorp LP, vol. 4(3), pages 312-328, September.
    4. Moshe Buchinsky, 1998. "Recent Advances in Quantile Regression Models: A Practical Guideline for Empirical Research," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 88-126.
    5. Marc Lavoie, 2000. "The Location of Pay Discrimination in the National Hockey League," Journal of Sports Economics, , vol. 1(4), pages 401-411, November.
    6. Michael A. Leeds & Sandra Kowalewski, 2001. "Winner Take All in the NFL," Journal of Sports Economics, , vol. 2(3), pages 244-256, August.
    7. Michael A. Curme & Greg M. Daugherty, 2004. "Competition and Pay for National Hockey League Players Born in Québec," Journal of Sports Economics, , vol. 5(2), pages 186-205, May.
    8. J. Colin & H. Jones & Serge Nadeau & William Walsh, 1999. "Ethnicity, productivity and salary: player compensation and discrimination in the National Hockey League," Applied Economics, Taylor & Francis Journals, vol. 31(5), pages 593-608.
    9. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
    10. Donald W. K. Andrews & Moshe Buchinsky, 2000. "A Three-Step Method for Choosing the Number of Bootstrap Repetitions," Econometrica, Econometric Society, vol. 68(1), pages 23-52, January.
    11. J. Jones & S. Nadeau & W. Walsh, 1997. "The wages of sin: Employment and salary effects of violence in the national hockey league," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 25(2), pages 191-206, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Christian Deutscher & Arne Büschemann, 2016. "Does Performance Consistency Pay Off Financially for Players? Evidence From the Bundesliga," Journal of Sports Economics, , vol. 17(1), pages 27-43, January.
    2. Rodney Fort & Young Hoon Lee & Taeyeon Oh, 2019. "Quantile Insights on Market Structure and Worker Salaries: The Case of Major League Baseball," Journal of Sports Economics, , vol. 20(8), pages 1066-1087, December.
    3. Quinn Andrew Wesley Keefer, 2013. "Compensation Discrimination for Defensive Players," Journal of Sports Economics, , vol. 14(1), pages 23-44, February.
    4. Bernd Frick, 2011. "Gender Differences in Competitive Orientations: Empirical Evidence from Ultramarathon Running," Journal of Sports Economics, , vol. 12(3), pages 317-340, June.
    5. Bernd Frick & Friedrich Scheel, 2013. "Gender differences in competitiveness: empirical evidence from 100m races," Chapters, in: Eva Marikova Leeds & Michael A. Leeds (ed.), Handbook on the Economics of Women in Sports, chapter 14, pages 293-318, Edward Elgar Publishing.
    6. Holmes, Paul, 2011. "New evidence of salary discrimination in major league baseball," Labour Economics, Elsevier, vol. 18(3), pages 320-331, June.
    7. Jahn Hakes & Chad Turner, 2011. "Pay, productivity and aging in Major League Baseball," Journal of Productivity Analysis, Springer, vol. 35(1), pages 61-74, February.
    8. Alex Bryson & Bernd Frick & Rob Simmons, 2009. "The Returns to Scarce Talent: Footedness and Player Remuneration in European Soccer," CEP Discussion Papers dp0948, Centre for Economic Performance, LSE.
    9. Alex Bryson & Bernd Frick & Rob Simmons, 2013. "The Returns to Scarce Talent," Journal of Sports Economics, , vol. 14(6), pages 606-628, December.
    10. Aju J. Fenn & Lucas Gerdes & Samuel Rothstein, 2019. "Country of Origin Effects on the Average Annual Values of NHL Player Contracts," IJFS, MDPI, vol. 7(2), pages 1-11, May.
    11. Franziska Prockl & Bernd Frick, 2018. "Wage Determination In A Regulated Labor Market: Empirical Evidence From Major League Soccer," Working Papers Dissertations 39, Paderborn University, Faculty of Business Administration and Economics.
    12. Carlo Bellavite Pellegrini & Raul Caruso & Marco Di Domizio, 2021. "Relative wages, payroll structure and performance in soccer. Evidence from Italian Serie A (2007-2019)," DISCE - Quaderni del Dipartimento di Politica Economica dipe0015, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    13. Claude Vincent & Byron Eastman, 2012. "Does Player Mobility Lead to Higher Earnings? Evidence from the Nhl," The American Economist, Sage Publications, vol. 57(1), pages 50-64, May.
    14. Julianne Treme & Samuel K. Allen, 2011. "Press Pass: Payoffs to Media Exposure Among National Football League (NFL) Wide Receivers," Journal of Sports Economics, , vol. 12(3), pages 370-390, June.
    15. Marco Di Domizio & Carlo Bellavite Pellegrini & Raul Caruso, 2022. "Payroll dispersion and performance in soccer: A seasonal perspective analysis for Italian Serie A (2007–2021)," Contemporary Economic Policy, Western Economic Association International, vol. 40(3), pages 513-525, July.
    16. Nancy J. Burnett & Lee James Van Scyoc, 2015. "Compensation Discrimination for Defensive Players," Journal of Sports Economics, , vol. 16(4), pages 375-389, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Claude Vincent & Byron Eastman, 2012. "Does Player Mobility Lead to Higher Earnings? Evidence from the Nhl," The American Economist, Sage Publications, vol. 57(1), pages 50-64, May.
    2. Vincent Claude B & Eastman Byron, 2009. "Defining the Style of Play in the NHL: An Application of Cluster Analysis," Journal of Quantitative Analysis in Sports, De Gruyter, vol. 5(1), pages 1-23, January.
    3. Thomas H. Bruggink & Daniel Williams, 2009. "Discrimination against Europeans in the National Hockey League: Are Players Getting Their Fair Pay?," The American Economist, Sage Publications, vol. 54(2), pages 82-90, October.
    4. Dennis Coates, 2017. "Returns to Handedness in Professional Hockey," Sports Economics, Management, and Policy, in: Bernd Frick (ed.), Breaking the Ice, pages 41-56, Springer.
    5. Guilherme Resende Oliveira & Benjamin Miranda Tabak & José Guilherme de Lara Resende & Daniel Oliveira Cajueiro, 2012. "Determinantes da Estrutura de Capital das Empresas Brasileiras: uma abordagem em regressão quantílica," Working Papers Series 272, Central Bank of Brazil, Research Department.
    6. Etilé, F, 2008. "Food Price Policies and the Distribution of Body Mass Index: Theory and Empirical Evidence from France," Health, Econometrics and Data Group (HEDG) Working Papers 08/10, HEDG, c/o Department of Economics, University of York.
    7. Pelnar, Gregory, 2007. "Antitrust Analysis of Sports Leagues," MPRA Paper 5382, University Library of Munich, Germany.
    8. Liu Yuan & Bottai Matteo, 2009. "Mixed-Effects Models for Conditional Quantiles with Longitudinal Data," The International Journal of Biostatistics, De Gruyter, vol. 5(1), pages 1-24, November.
    9. Quinn Andrew Wesley Keefer, 2013. "Compensation Discrimination for Defensive Players," Journal of Sports Economics, , vol. 14(1), pages 23-44, February.
    10. Kevin Mongeon, 2015. "A Market Test for Ethnic Discrimination in the National Hockey League," Journal of Sports Economics, , vol. 16(5), pages 460-481, June.
    11. O.S. Mariev & N.B. Davidson & O.S. Emelianova, 2020. "The Impact of Urbanization on Carbon Dioxide Emissions in the Regions of Russia," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 19(3), pages 286-309.
    12. Chunbei Wang & Le Wang, 2011. "Language Skills and the Earnings Distribution Among Child Immigrants," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 50(2), pages 297-322, April.
    13. Strike Mbulawa & Francis Nathan Okurut & Mogale Ntsosa & Narain Sinha, 2020. "Dynamics of Corporate Dividend Policy under Hyperinflation and Dollarization: A Quantile Regression Approach," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 13(3), pages 70-82, December.
    14. Duschl, Matthias & Schimke, Antje & Brenner, Thomas & Luxen, Dennis, 2011. "Firm growth and the spatial impact of geolocated external factors: Empirical evidence for German manufacturing firms," Working Paper Series in Economics 36, Karlsruhe Institute of Technology (KIT), Department of Economics and Management.
    15. Agbeyegbe, Terence D., 2015. "An inverted U-shaped crude oil price return-implied volatility relationship," Review of Financial Economics, Elsevier, vol. 27(C), pages 28-45.
    16. Gaglianone, Wagner Piazza & Lima, Luiz Renato & Linton, Oliver & Smith, Daniel R., 2011. "Evaluating Value-at-Risk Models via Quantile Regression," Journal of Business & Economic Statistics, American Statistical Association, vol. 29(1), pages 150-160.
    17. G. Reza Arabsheibani & Francisco Galrao Carneiro & Andrew Henley, 2003. "Human capital and earnings inequality in Brazil, 1988-98 : quantile regression evidence," Policy Research Working Paper Series 3147, The World Bank.
    18. Duc Hong Vo & Thach Ngoc Pham, 2017. "Systematic Risk in Energy Businesses: Empirical Evidence for the ASEAN," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 553-565.
    19. Makowsky, Michael, 2009. "Religious Extremism, Clubs, and Civil Liberties: A Model of Religious Populations," MPRA Paper 14358, University Library of Munich, Germany.
    20. Alex Coad & Rekha Rao, 2007. "The employment effects of innovation," Documents de travail du Centre d'Economie de la Sorbonne r07036, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:jospec:v:10:y:2009:i:3:p:256-277. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.