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The NBA, Exit Discrimination, and Career Earnings

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Author Info

  • Hoang, Ha
  • Rascher, Dan

Abstract

The purpose of this paper is threefold. First, it complements the many wage discrimination studies by examining exit discrimination in the NBA using a decade's worth of data (the 1980's). White players have a 36% lower risk of being cut than black players, ceteris paribus, translating into an expected career length of 7.5 seasons for an apparently similar player who is white, and 5.5 seasons for the same player who is black. Second, the career earnings effect of exit discrimination in the 1980's is larger ($808,000) than the career earnings effect of wage discrimination ($329,000). Third, our data are consistent with the hypothesis that customer racial discrimination is the reason for the observed exit discrimination.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 3542.

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Date of creation: Jan 1999
Date of revision:
Publication status: Published in Industrial Relations 38.1(1999): pp. 69-91
Handle: RePEc:pra:mprapa:3542

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Related research

Keywords: discrimination; labor economics; career earnings; basketball; survival analysis;

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References

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  1. Lawrence M. Kahn, 1991. "Discrimination in professional sports: A survey of the literature," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 44(3), pages 395-418, April.
  2. Kahn, Lawrence M & Sherer, Peter D, 1988. "Racial Differences in Professional Basketball Players' Compensation," Journal of Labor Economics, University of Chicago Press, vol. 6(1), pages 40-61, January.
  3. Rodney Fort & James Quirk, 1995. "Cross-subsidization, Incentives, and Outcomes in Professional Team Sports Leagues," Journal of Economic Literature, American Economic Association, vol. 33(3), pages 1265-1299, September.
  4. William D. Walsh, 1992. "The Entry Problem of Francophones in the National Hockey League: A Systemic Interpretation," Canadian Public Policy, University of Toronto Press, vol. 18(4), pages 443-460, December.
  5. Diebold, Francis X & Neumark, David & Polsky, Daniel, 1997. "Job Stability in the United States," Journal of Labor Economics, University of Chicago Press, vol. 15(2), pages 206-33, April.
  6. J. C. H. Jones & William D. Walsh, 1988. "Salary determination in the National Hockey League: The effects of skills, franchise characteristics, and discrimination," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 41(4), pages 592-604, July.
  7. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226041162, March.
  8. Kenneth A. Swinnerton & Howard Wial, 1995. "Is job stability declining in the U.S. economy?," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 48(2), pages 293-304, January.
  9. Kahn, Lawrence M, 1991. "Customer Discrimination and Affirmative Action," Economic Inquiry, Western Economic Association International, vol. 29(3), pages 555-71, July.
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Citations

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Cited by:
  1. Lawrence M. Kahn, 2000. "The Sports Business as a Labor Market Laboratory," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 75-94, Summer.
  2. Richard C. K. Burdekin & Richard T. Hossfeld & Janet Kiholm Smith, 2005. "Are NBA Fans Becoming Indifferent to Race? Evidence From the 1990s," Journal of Sports Economics, , vol. 6(2), pages 144-159, May.
  3. Johnny Ducking & Peter A. Groothuis & James Richard Hill, 2012. "Minimum Pay Scale and Career Length in the NBA," Working Papers 12-02, Department of Economics, Appalachian State University.
  4. Tainsky, Scott & Mills, Brian & Winfree, Jason A., 2012. "Further Examination of Potential Discrimination Among MLB Umpires," MPRA Paper 43234, University Library of Munich, Germany.
  5. Peter A. Groothuis & Richard Hill, 2007. "Exit Discrimination in Major League Baseball: 1990-2004," Working Papers 07-02, Department of Economics, Appalachian State University.
  6. yamamura, eiji, 2008. "Game Information, Local Heroes, And Their Effect On Attendance: The Case Of The Japanese Baseball League," MPRA Paper 10303, University Library of Munich, Germany.
  7. Grund, Christian & Höcker, Jan & Zimmermann, Stefan, 2010. "Risk Taking Behavior in Tournaments: Evidence from the NBA," IZA Discussion Papers 4812, Institute for the Study of Labor (IZA).
  8. Dilger, Alexander, 2002. "Never change a winning team: An analysis of hazard rates in the NBA," Wirtschaftswissenschaftliche Diskussionspapiere 03/2002, Ernst Moritz Arndt University of Greifswald, Faculty of Law and Economics.
  9. Kahn, Lawrence M., 2009. "The Economics of Discrimination: Evidence from Basketball," IZA Discussion Papers 3987, Institute for the Study of Labor (IZA).
  10. Berri, David J. & Schmidt, Martin B., 2002. "Instrumental versus bounded rationality: a comparison of Major League Baseball and the National Basketball Association," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 31(3), pages 191-214.
  11. McDonald, Mark & Rascher, Daniel, 2000. "Does Bat Day Make Cents? The Effect of Promotions on the Demand for Major League Baseball," MPRA Paper 25739, University Library of Munich, Germany.

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