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Racial Differences in Professional Basketball Players' Compensation

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Author Info
Kahn, Lawrence M
Sherer, Peter D

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Abstract

This article investigates racial differences in 1985-86 salaries of individual professio nal basketball players. White and black players earn similar mean com pensation; however, controlling for a variety of productivity and mar ket-related variables and for the endogeneity of player draft positio n, the authors find a significant ceteris paribus black compensation shortfall of about 20 percent. Further, they find that all else equal , including team performance and market factors, replacing one black player with an identical white player raises home attendance by 8,000 to 13,000 fans per season. The compensation and attendance results t ogether are consistent with the idea of customer discrimination. Copyright 1988 by University of Chicago Press.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 6 (1988)
Issue (Month): 1 (January)
Pages: 40-61
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Handle: RePEc:ucp:jlabec:v:6:y:1988:i:1:p:40-61

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  1. Lawrence M. Kahn, 2009. "The Economics of Discrimination: Evidence from Basketball," NCER Working Paper Series 40, National Centre for Econometric Research. [Downloadable!]
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  2. H. J. Holzer & K. R. Ihlanfeldt, . "Customer Discrimination and Employment Outcomes for Minority Workers," Institute for Research on Poverty Discussion Papers 1122-97, University of Wisconsin Institute for Research on Poverty. [Downloadable!]
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  3. Benno Torgler & Markus Schaffner & Bruno S.Frey & Sascha L. Schmidt, 2008. "Looking Awkward When Winning and Foolish When Losing: Inequity Aversion and Performance in the Field," School of Economics and Finance Discussion Papers and Working Papers Series 230, School of Economics and Finance, Queensland University of Technology. [Downloadable!]
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  4. Jonathan Leonard & David Levine, 2003. "Diversity, discrimination, and performance," Institute for Research on Labor and Employment, Working Paper Series 1029, Institute of Industrial Relations, UC Berkeley. [Downloadable!]
  5. Sherwin Rosen & Allen Sanderson, 2000. "Labor Markets in Professional Sports," NBER Working Papers 7573, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Joseph Price & Justin Wolfers, 2007. "Racial Discrimination Among NBA Referees," IZA Discussion Papers 2863, Institute for the Study of Labor (IZA). [Downloadable!]
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  7. Kevin G. Quinn & Melissa Geier & Anne Berkovitz, 2007. "Superstars and Journeymen: An Analysis of National Football Team’s Allocation of the Salary Cap across Rosters, 2000-2005," Working Papers 0722, International Association of Sports Economists. [Downloadable!]
  8. Dennis P. Wilson & Yung-Hsiang Ying, 2003. "Nationality preferences for labour in the international football industry," Applied Economics, Taylor and Francis Journals, vol. 35(14), pages 1551-1559, September. [Downloadable!] (restricted)
  9. Erick Eschker & Stephen J. Perez & Mark V. Siegler, 2004. "The NBA and the influx of international basketball players," Applied Economics, Taylor and Francis Journals, vol. 36(10), pages 1009-1020, June. [Downloadable!] (restricted)
  10. Franc J.G.M. Klaasen & Jan R. Magnus, 2006. "Are Economic Agents Successful Optimizers? An Analysis through Service Strategy in Tennis," Tinbergen Institute Discussion Papers 06-048/2, Tinbergen Institute. [Downloadable!]
  11. Caitlin Knowles Myers, 2005. "Discrimination as a Competitive Device: The Case of Local Television News," IZA Discussion Papers 1802, Institute for the Study of Labor (IZA). [Downloadable!]
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  12. Benno Torgler, 2004. "‘La Grande Boucle’: Determinants of Success at the Tour de France," CREMA Working Paper Series 2004-22, Center for Research in Economics, Management and the Arts (CREMA), revised May 2005. [Downloadable!]
  13. Stephen L. Ross, 2003. "What Is Known about Testing for Discrimination: Lessons Learned by Comparing across Different Markets," Working papers 2003-21, University of Connecticut, Department of Economics, revised Nov 2003. [Downloadable!]
  14. repec:bep:eaptop:v:5:y:2005:i:1:p:1396-1396 is not listed on IDEAS
  15. Peter A. Groothuis & Richard Hill, 2007. "Exit Discrimination in Major League Baseball: 1990-2004," Working Papers 07-02, Department of Economics, Appalachian State University. [Downloadable!]
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  16. Goodall, Amanda H. & Kahn, Lawrence M. & Oswald, Andrew J., 2008. "Why Do Leaders Matter? The Role of Expert Knowledge," IZA Discussion Papers 3583, Institute for the Study of Labor (IZA). [Downloadable!]
  17. 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 2002-12, Claremont Colleges. [Downloadable!]
  18. Klaassen, Franc J.G.M. & Magnus, Jan R., 2006. "Are economic agents succesful optimizers? : an analysis through strategy in tennis," Discussion Paper 52, Tilburg University, Center for Economic Research. [Downloadable!]
  19. Benno Torgler & Markus Schaffner & Bruno S. Frey & Sascha L. Schmidt & Uwe Dulleck, 2008. "Inequality Aversion and Performance in and on the Field," NCER Working Paper Series 36, National Centre for Econometric Research. [Downloadable!]
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