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Salary Inequality In The Nba: Changing Returns To Skill Or Wider Skill Distributions?, Jonah F. Breslow
Salary Inequality In The Nba: Changing Returns To Skill Or Wider Skill Distributions?, Jonah F. Breslow
CMC Senior Theses
In this paper, I examine trends in salary inequality from the 1985-86 NBA season to the 2015-16 NBA season. Income and wealth inequality have been extremely important issues recently, which motivated me to analyze inequality in the NBA. I investigated if salary inequality trends in the NBA can be explained by either returns to skill or widening skill distributions. I used Pareto exponents to measure inequality levels and tested to see if the levels changed over the sample. Then, I estimated league-wide returns to skill. I found that returns to skill have not significantly changed, but variance in skill has …