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Has Salary Discrimination Really Disappeared From Major League Baseball?

Author

Listed:
  • Matthew C. Palmer

    (The Ohio State University)

  • Randall H. King

    () (Department of Economics, University of Akron)

Abstract

Analysis of a detailed data set for the 2000-2001 period shows no evidence of overall racial or ethnic salary discrimination for baseball players. Given prior research, that finding is not unusual. However, when the data set is divided into low, middle, and high salary ranges, a RESST test shows that minorities in the lowest salary group receive significantly lower returns to their skills than do whites. A decomposition of the wage differences for the lowest salary group shows that as much as 86.3% of the black/white and 91.5% of the Hispanic/white salary gap may be due to discrimination.

Suggested Citation

  • 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.
  • Handle: RePEc:eej:eeconj:v:32:y:2006:i:2:p:285-297
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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume32/V32N2P285_297.pdf
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    References listed on IDEAS

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    1. Marshall Medoff, 1975. "A reappraisal of racial discrimination against blacks in professional baseball," The Review of Black Political Economy, Springer;National Economic Association, vol. 5(3), pages 259-268, March.
    2. 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.
    3. Daniel Marburger, 1996. "Racial discrimination and long-term contracts in major league baseball," The Review of Black Political Economy, Springer;National Economic Association, vol. 25(1), pages 83-94, September.
    4. R. Todd Jewell & Robert Brown & Scott Miles, 2002. "Measuring discrimination in major league baseball: evidence from the baseball hall of fame," Applied Economics, Taylor & Francis Journals, vol. 34(2), pages 167-177.
    5. 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.
    6. Rodney Fort & Andrew Gill, 2000. "Race and Ethnicity Assessment in Baseball Card Markets," Journal of Sports Economics, , vol. 1(1), pages 21-38, February.
    7. Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-475, June.
    8. Fred A. Bellemore, 2001. "Racial and Ethnic Employment Discrimination," Journal of Sports Economics, , vol. 2(4), pages 356-368, November.
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    Cited by:

    1. 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.
    2. Holmes, Paul, 2011. "New evidence of salary discrimination in major league baseball," Labour Economics, Elsevier, vol. 18(3), pages 320-331, June.

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