The Salary Discrimination in NBA
|Author:||Bc. Vojtěch Pacák|
|Year:||2016 - summer|
|Leaders:|| Václav Korbel Ph.D.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||Discrimination is commonly investigated throughout the labor market. This empirical study
investigates salary discrimination in National basketball association. In last three decades, plenty
of papers concerning this behavior have been published. However, results of them are not
consistent. We use the most current data and adjusted previous models to reveal today's situation.
We create a unique dataset based on statistics and personal qualities, both available on the official
website of the league. We suggested two approaches that should capture different kinds of
managers' thinking. The first approach controls for statistics from last three seasons, whereas the
second approach covers all-career performance. For this study we used salaries from last five
seasons with different sample in each period. As our sample is example of independently pooled
cross sections, Ordinary Least Squares method can be used. By controlling for dummy variable
white, we are able to immediately comment on salary differences between black and white
players. We have not found any patterns of salary discrimination between blacks and whites
variables. However, we found significant benefit given to centers. This may explain originally
reported benefit for white players, as white players are on average significantly taller than blacks,
and first studies did not control for players' height.