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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
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    References listed on IDEAS

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    Cited by:

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    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. Quinn Andrew Wesley Keefer, 2013. "Compensation Discrimination for Defensive Players," Journal of Sports Economics, , vol. 14(1), pages 23-44, February.
    7. 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 - Working Papers del Dipartimento di Politica Economica dipe0015, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    8. 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.
    9. 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.
    10. Bernd Frick, 2011. "Gender Differences in Competitive Orientations: Empirical Evidence from Ultramarathon Running," Journal of Sports Economics, , vol. 12(3), pages 317-340, June.
    11. Dr Alex Bryson, 2009. "The Returns to Scarce Talent: Footedness and Player Remuneration in European Soccer," National Institute of Economic and Social Research (NIESR) Discussion Papers 339, National Institute of Economic and Social Research.
    12. Nancy J. Burnett & Lee James Van Scyoc, 2015. "Compensation Discrimination for Defensive Players," Journal of Sports Economics, , vol. 16(4), pages 375-389, May.
    13. Alex Bryson & Bernd Frick & Rob Simmons, 2013. "The Returns to Scarce Talent," Journal of Sports Economics, , vol. 14(6), pages 606-628, December.
    14. 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.
    15. 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.
    16. 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.

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