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Minimum Pay Scale and Career Length in the NBA

Author

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  • Johnny Ducking
  • Peter A. Groothuis
  • James Richard Hill

Abstract

type="main" xml:id="irel12071-abs-0001"> We use data from the National Basketball Association (NBA) to analyze the impact of minimum salaries on an employee's career length. The NBA has a salary structure in which the minimum salary a player can receive increases with the player's years of experience. The NFL has a similar minimum wage policy; research suggests that the introduction of this system shortened career length in the NFL. Using duration analysis, we fail to find evidence that the new multi-tiered minimum wage scale in the NBA increased the probability of exit.

Suggested Citation

  • Johnny Ducking & Peter A. Groothuis & James Richard Hill, 2014. "Minimum Pay Scale and Career Length in the NBA," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 53(4), pages 617-635, October.
    • Handle: RePEc:bla:indres:v:53:y:2014:i:4:p:617-635
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    File URL: http://hdl.handle.net/10.1111/irel.2014.53.issue-4
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    Cited by:

    1. Kelly M. Hastings & Frank Stephenson, 2015. "The NBA’s Maximum Player Salary and the Distribution of Player Rents," IJFS, MDPI, vol. 3(2), pages 1-9, March.
    2. Mark C. Strazicich & Peter A. Groothuis & Tiberiu S.V. Ungureanu, 2024. "A Rising Tide Raises all Boats: The changing distribution of salaries in the NBA over time," Working Papers 24-20, Department of Economics, Appalachian State University.

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