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Is Racial Salary Discrimination Disappearing in the NBA? Evidence from Data during 1985-2015

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  • Hisahiro Naito
  • Yu Takagi

Abstract

This study re-examines racial salary discrimination of National Basketball Association players by constructing a long unbalanced panel covering the 1985--1986 to 2015--2016 seasons. Contrary to the results of previous studies, we find that non-white players are paid equally to white players with similar characteristics in the 1980s and 1990s, but that white players started to be paid 20 percent more than non-white players in the last 10 years. Our results are robust in all specification checks such as the quantile regressions, controlling the sample selection and controlling different contract types. Non-parametrically estimated density of the counter-factual salary of non-white players confirms our results. In addition, we find that neither the employers preference nor income gap of white and black fans explain this increasing salary gap.

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  • Hisahiro Naito & Yu Takagi, 2016. "Is Racial Salary Discrimination Disappearing in the NBA? Evidence from Data during 1985-2015," Tsukuba Economics Working Papers 2016-001, Faculty of Humanities and Social Sciences, University of Tsukuba.
    • Handle: RePEc:tsu:tewpjp:2016-001
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    1. Wen-Jhan Jane, 2021. "The impact of cultural distance on salary: the case of Samurai Japan," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 11(1), pages 85-123, March.
    2. Hisahiro Naito & Yu Takagi, 2017. "Is there A Positive Association between Increasing Salary Discrimination in the NBA and Unshrinking Racial Income Gap of White and Black Citizens ?," Tsukuba Economics Working Papers 2017-001, Faculty of Humanities and Social Sciences, University of Tsukuba.
    3. Shao, Wen-Chao & Zhang, Han & Chou, Li-Chen & Ye, Xi-Xi, 2023. "Comparing athletes’ mastery of salary information before and during the COVID-19 pandemic: Evidence from the national basketball association," Economic Modelling, Elsevier, vol. 128(C).
    4. Hisahiro Naito & Yu Takagi, 2016. "Does Increasing Salary Discrimination in the NBA Reflect Disparity of Fans' Purchasing Power?," Tsukuba Economics Working Papers 2016-002, Faculty of Humanities and Social Sciences, University of Tsukuba.
    5. Christopher Jepsen, 2023. "Determinants of Career Exits and Career Breaks in Women's Professional Basketball," Journal of Sports Economics, , vol. 24(8), pages 1055-1075, December.

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