Pay, productivity and aging in Major League Baseball
Using panels of player pay and performance from Major League Baseball (MLB), we examine trends in player productivity and salaries as players age. Pooling players of all ability levels leads to a systematic bias in regression coefficients. After addressing this problem by dividing players into talent quintiles, we find that the best players peak about two years later than marginal players, and development and depreciation of ability appear to be more pronounced for players with the highest peak ability levels. Within-career variation, however, is less pronounced than between-player variation, and the talent level of players within a given quintile will typically remain lower than the talent level for rookies in the next higher quintile. Free agents are paid proportionately with their production at all ability levels, whereas young players’ salaries are suppressed by similar amounts.
(This abstract was borrowed from another version of this item.)
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Brad R. Humphreys, 2000. "Equal Pay on the Hardwood: The Earnings Gap between Male and Female NCAA Division I Basketball Coaches," Journal of Sports Economics, , vol. 1(3), pages 299-307, August.
- Krohn, Gregor A, 1983. "Measuring the Experience-Productivity Relationship: The Case of Major League Baseball," Journal of Business & Economic Statistics, American Statistical Association, vol. 1(4), pages 273-79, October.
- Jahn K. Hakes & Raymond D. Sauer, 2006. "An Economic Evaluation of the Moneyball Hypothesis," Journal of Economic Perspectives, American Economic Association, vol. 20(3), pages 173-186, Summer.
- Fair Ray C, 2008.
"Estimated Age Effects in Baseball,"
Journal of Quantitative Analysis in Sports,
De Gruyter, vol. 4(1), pages 1-41, January.
- Kahn, Lawrence M, 1993. "Free Agency, Long-Term Contracts and Compensation in Major League Baseball: Estimates from Panel Data," The Review of Economics and Statistics, MIT Press, vol. 75(1), pages 157-64, February.
- Ira Horowitz & Christopher Zappe, 1998. "Thanks for the memories: baseball veterans' end-of-career salaries," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 19(6), pages 377-382.
- Rob Simmons & David Berri, 2008. "Race and the Evaluation of Signal Callers in the National Football League," IASE Conference Papers 0825, International Association of Sports Economists.
- Scully, Gerald W, 1974. "Pay and Performance in Major League Baseball," American Economic Review, American Economic Association, vol. 64(6), pages 915-30, December.
- Lawrence M. Kahn, 2006.
"Race, Performance, Pay, and Retention Among National Basketball Association Head Coaches,"
Journal of Sports Economics,
, vol. 7(2), pages 119-149, May.
- Kahn, Lawrence M., 2004. "Race, Performance, Pay and Retention among National Basketball Association Head Coaches," IZA Discussion Papers 1120, Institute for the Study of Labor (IZA).
- 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.
- Daniel R. Marburger, 2004. "Arbitrator Compromise in Final Offer Arbitration: Evidence from Major League Baseball," Economic Inquiry, Western Economic Association International, vol. 42(1), pages 60-68, January.
When requesting a correction, please mention this item's handle: RePEc:kap:jproda:v:35:y:2011:i:1:p:61-74. 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: (Guenther Eichhorn)or (Christopher F. Baum)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.