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The NBA, Exit Discrimination, and Career Earnings

  • Hoang, Ha
  • Rascher, Dan

The purpose of this paper is threefold. First, it complements the many wage discrimination studies by examining exit discrimination in the NBA using a decade's worth of data (the 1980's). White players have a 36% lower risk of being cut than black players, ceteris paribus, translating into an expected career length of 7.5 seasons for an apparently similar player who is white, and 5.5 seasons for the same player who is black. Second, the career earnings effect of exit discrimination in the 1980's is larger ($808,000) than the career earnings effect of wage discrimination ($329,000). Third, our data are consistent with the hypothesis that customer racial discrimination is the reason for the observed exit discrimination.

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File URL: http://mpra.ub.uni-muenchen.de/3542/1/MPRA_paper_3542.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 3542.

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Date of creation: Jan 1999
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Publication status: Published in Industrial Relations 38.1(1999): pp. 69-91
Handle: RePEc:pra:mprapa:3542
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  1. J. C. H. Jones & William D. Walsh, 1988. "Salary determination in the National Hockey League: The effects of skills, franchise characteristics, and discrimination," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 41(4), pages 592-604, July.
  2. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162.
  3. Kahn, Lawrence M, 1991. "Customer Discrimination and Affirmative Action," Economic Inquiry, Western Economic Association International, vol. 29(3), pages 555-71, July.
  4. William D. Walsh, 1992. "The Entry Problem of Francophones in the National Hockey League: A Systemic Interpretation," Canadian Public Policy, University of Toronto Press, vol. 18(4), pages 443-460, December.
  5. 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.
  6. Kenneth A. Swinnerton & Howard Wial, 1995. "Is job stability declining in the U.S. economy?," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 48(2), pages 293-304, January.
  7. Kahn, Lawrence M & Sherer, Peter D, 1988. "Racial Differences in Professional Basketball Players' Compensation," Journal of Labor Economics, University of Chicago Press, vol. 6(1), pages 40-61, January.
  8. Rodney Fort & James Quirk, 1995. "Cross-subsidization, Incentives, and Outcomes in Professional Team Sports Leagues," Journal of Economic Literature, American Economic Association, vol. 33(3), pages 1265-1299, September.
  9. Francis X. Diebold & David Neumark & Daniel Polsky, 1994. "Job Stability in the United States," NBER Working Papers 4859, National Bureau of Economic Research, Inc.
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