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An empirical investigation of wage discrimination in professional basketball

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  • Mark Gius
  • Donn Johnson
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    Abstract

    Previous research has shown that wage discrimination may exist in National Basketball Association (NBA) player salaries. These studies have shown that African-Americans earned from nine to twenty per cent less than whites when on-court performance is held constant. The authors could find no substantial research that has been done in this area since 1991. The present study re-examines this issue. Using salary data from the 1996-97 season and performance statistics from the 1995-96 season, a log-linear wage equation was estimated, and a Chow Test was performed. Holding all other factors constant, African-American players do not earn less than white players. The most important factors affecting an NBA player's salary are on-court performance, free agency, experience, and the draft status of the player. These results are important since they indicate that wage discrimination based on race appears to have been eliminated from the NBA.

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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

    Volume (Year): 5 (1998)
    Issue (Month): 11 ()
    Pages: 703-705

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    Handle: RePEc:taf:apeclt:v:5:y:1998:i:11:p:703-705

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    Cited by:
    1. Leif Brandes & Marc Brechot & Egon Franck, 2011. "The Temptation of Social Ties: When Interpersonal Network Transactions Hurt Firm Performance," Working Papers, University of Zurich, Institute for Strategy and Business Economics (ISU) 00159, University of Zurich, Institute for Strategy and Business Economics (ISU), revised 2012.
    2. Lawrence M. Kahn, 2009. "The Economics of Discrimination: Evidence from Basketball," NCER Working Paper Series, National Centre for Econometric Research 40, National Centre for Econometric Research.
    3. Quinn Andrew Wesley Keefer, 2013. "Compensation Discrimination for Defensive Players," Journal of Sports Economics, , vol. 14(1), pages 23-44, February.
    4. Richard C.K. Burdekin & Richard T. Hossfeld & Janet K. Smith, 2002. "Are NBA Fans Becoming Indifferent to Race? Evidence from the 1990s," Claremont Colleges Working Papers, Claremont Colleges 2002-12, Claremont Colleges.
    5. Erick Eschker & Stephen Perez & Mark Siegler, 2004. "The NBA and the influx of international basketball players," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 36(10), pages 1009-1020.
    6. David Berri & Stacey Brook & Aju Fenn, 2011. "From college to the pros: predicting the NBA amateur player draft," Journal of Productivity Analysis, Springer, Springer, vol. 35(1), pages 25-35, February.
    7. Pelnar, Gregory, 2007. "Antitrust Analysis of Sports Leagues," MPRA Paper 5382, University Library of Munich, Germany.

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