IDEAS home Printed from https://ideas.repec.org/a/eee/labeco/v18y2011i3p320-331.html
   My bibliography  Save this article

New evidence of salary discrimination in major league baseball

Author

Listed:
  • Holmes, Paul

Abstract

Salary discrimination in MLB has largely been discarded as a research topic. However traditional quantitative methods (particularly least squares regression) have concentrated on the effect of race for the average player. If only a particular salary class of players are subject to discrimination, or if the size of the discrimination is small at the average, then least-squares techniques will struggle to identify discrimination. I use quantile regression to uncover salary discrimination against black players in the lower half of the salary distribution. Not only are the premia for white and Hispanic players statistically significant, but they are large: up to 25% of salary for the bottom quintile of players.

Suggested Citation

  • Holmes, Paul, 2011. "New evidence of salary discrimination in major league baseball," Labour Economics, Elsevier, vol. 18(3), pages 320-331, June.
  • Handle: RePEc:eee:labeco:v:18:y:2011:i:3:p:320-331
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0927-5371(10)00130-2
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Robert Simmons & David Berri, 2005. "Race and evaluation of signal callers in the National Football League," IASE Conference Papers 0511, International Association of Sports Economists.
    2. Clark Nardinelli & Curtis Simon, 1990. "Customer Racial Discrimination in the Market for Memorabilia: The Case of Baseball," The Quarterly Journal of Economics, Oxford University Press, vol. 105(3), pages 575-595.
    3. Anthony C. Krautmann & Margaret Oppenheimer, 2002. "Contract Length and the Return to Performance in Major League Baseball," Journal of Sports Economics, , vol. 3(1), pages 6-17, February.
    4. Barton Hughes Hamilton, 1997. "Racial discrimination and professional basketball salaries in the 1990s," Applied Economics, Taylor & Francis Journals, vol. 29(3), pages 287-296.
    5. Robert Mogull, 1975. "Salary discrimination in major league baseball," The Review of Black Political Economy, Springer;National Economic Association, vol. 5(3), pages 269-279, March.
    6. Krautmann, Anthony C, 1999. "What's Wrong with Scully-Estimates of a Player's Marginal Revenue Product," Economic Inquiry, Western Economic Association International, vol. 37(2), pages 369-381, April.
    7. Anthony C. Krautmann & Elizabeth Gustafson & Lawrence Hadley, 2003. "A Note on the Structural Stability of Salary Equations," Journal of Sports Economics, , vol. 4(1), pages 56-63, February.
    8. Michael A. Leeds & Sandra Kowalewski, 2001. "Winner Take All in the NFL," Journal of Sports Economics, , vol. 2(3), pages 244-256, August.
    9. Koenker,Roger, 2005. "Quantile Regression," Cambridge Books, Cambridge University Press, number 9780521845731, December.
    10. AC. Krautmann & E. Gustafson & L. Hadley, 2000. "Who pays for minor league training costs?," Contemporary Economic Policy, Western Economic Association International, vol. 18(1), pages 37-47, January.
    11. Donald J. Cymrot, 1985. "Does Competition Lessen Discrimination? Some Evidence," Journal of Human Resources, University of Wisconsin Press, vol. 20(4), pages 605-612.
    12. Depken II, Craig A. & Ford, Jon M., 2006. "Customer-based discrimination against major league baseball players: Additional evidence from All-star ballots," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(6), pages 1061-1077, December.
    13. Hanssen, F Andrew & Andersen, Torben, 1999. "Has Discrimination Lessened over Time? A Test Using Baseball's All-Star Vote," Economic Inquiry, Western Economic Association International, vol. 37(2), pages 326-352, April.
    14. Matthew C. Palmer & Randall H. King, 2006. "Has Salary Discrimination Really Disappeared From Major League Baseball?," Eastern Economic Journal, Eastern Economic Association, vol. 32(2), pages 285-297, Spring.
    15. Cymrot, Donald J, 1983. "Migration Trends and Earnings of Free Agents in Major League Baseball, 1976-1979," Economic Inquiry, Western Economic Association International, vol. 21(4), pages 545-556, October.
    16. 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.
    17. Reinhard Hujer & Bernd Fitzenberger & Reinhold Schnabel & Thomas E. MaCurdy, 2001. "Testing for uniform wage trends in West-Germany: A cohort analysis using quantile regressions for censored data," Empirical Economics, Springer, vol. 26(1), pages 41-86.
    18. Fred A. Bellemore, 2001. "Racial and Ethnic Employment Discrimination," Journal of Sports Economics, , vol. 2(4), pages 356-368, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. David J. Berri & Brad R. Humphreys & Robert Simmons, 2013. "Valuing the blind side: pay and performance of offensive linemen in the National Football League," Chapters,in: The Econometrics of Sport, chapter 6, pages 99-114 Edward Elgar Publishing.
    2. Berlinschi, Ruxanda & Schokkaert, Jeroen & Swinnen, Johan, 2013. "When drains and gains coincide: Migration and international football performance," Labour Economics, Elsevier, vol. 21(C), pages 1-14.
    3. Koning Ruud H. & Maennig Wolfgang, 2012. "Guest Editorial," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 232(3), pages 204-209, June.
    4. Joshua Pitts & Daniel Yost, 2013. "Racial Position Segregation in Intercollegiate Football: Do Players become more Racially Segregated as they Transition from High School to College?," The Review of Black Political Economy, Springer;National Economic Association, vol. 40(2), pages 207-230, June.
    5. Johnny Ducking & Peter Groothuis & James Hill, 2015. "Exit Discrimination in the NFL: A Duration Analysis of Career Length," The Review of Black Political Economy, Springer;National Economic Association, vol. 42(3), pages 285-299, September.
    6. Craig A. Depken II & Johnny Ducking & Peter A. Groothuis, 2015. "Career Duration in the NHL: Bias against Europeans?," Working Papers 15-09, Department of Economics, Appalachian State University.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:labeco:v:18:y:2011:i:3:p:320-331. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/labeco .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.