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Minimum Pay Scale and Career Length in the NBA

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

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. Salary schedules similar to the NBA’s exist in public education, federal government agencies, the Episcopalian church, and unionized industries. Even though the magnitude of the salaries in the NBA differs from other industries, this study provides insight to the impact of this type of salary structure on career length. Using duration analysis, we find statistically significant evidence that minimum salaries shorten career length. Key Words:

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File URL: http://econ.appstate.edu/RePEc/pdf/wp1202.pdf
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Paper provided by Department of Economics, Appalachian State University in its series Working Papers with number 12-02.

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Date of creation: 2012
Date of revision:
Handle: RePEc:apl:wpaper:12-02
Contact details of provider: Postal: Thelma C. Raley Hall, Boone, North Carolina 28608
Phone: 828-262-2148
Fax: 828-262-6105
Web page: http://www.business.appstate.edu/departments/economics/

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  1. Hoang, Ha & Rascher, Dan, 1999. "The NBA, Exit Discrimination, and Career Earnings," MPRA Paper 3542, University Library of Munich, Germany.
  2. Peter A. Groothuis & Richard Hill, 2007. "Exit Discrimination in Major League Baseball: 1990-2004," Working Papers 07-02, Department of Economics, Appalachian State University.
  3. Mark C. Berger & Dan A. Black, 1996. "The Duration of Medicaid Spells: An Analysis Using Flow and Stock Samples," HEW 9604003, EconWPA.
  4. Peter A. Groothuis & J. Richard Hill, 2004. "Exit Discrimination in the NBA: A Duration Analysis of Career Length," Economic Inquiry, Western Economic Association International, vol. 42(2), pages 341-349, April.
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