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A Rising Tide Raises all Boats: The Changing Distribution of Salaries in the NBA Over Time

Author

Listed:
  • Mark C. Strazicich
  • John W. Dawson
  • Peter A. Groothuis
  • Tiberiu S.V. Ungureanu

Abstract

We examine the evolution of salary distribution in the National Basketball Association using a panel of all full-time players. We identify three eras using structural break analysis, with breaks aligned to changes in Collective Bargaining Agreements that occurred at the time of lockouts. Our findings show that real salaries have risen substantially across all income levels but not at the same rate. Analyzing the Lorenz curve and Gini coefficient, we observe a period of increasing inequality during the 1990s, followed by a more equitable salary distribution in the early 2000s, and then a return to rising inequality in recent years.

Suggested Citation

  • Mark C. Strazicich & John W. Dawson & Peter A. Groothuis & Tiberiu S.V. Ungureanu, 2026. "A Rising Tide Raises all Boats: The Changing Distribution of Salaries in the NBA Over Time," Journal of Sports Economics, , vol. 27(5), pages 503-527, June.
    • Handle: RePEc:sae:jospec:v:27:y:2026:i:5:p:503-527
    DOI: 10.1177/15270025261436349
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    Keywords

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    JEL classification:

    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • Z22 - Other Special Topics - - Sports Economics - - - Labor Issues
    • Z21 - Other Special Topics - - Sports Economics - - - Industry Studies
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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