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Full-Text Articles in Social and Behavioral Sciences
Beyond Moneyball: Changing Compensation In Mlb, Joshua Congdon-Hohman, Jonathan A. Lanning
Beyond Moneyball: Changing Compensation In Mlb, Joshua Congdon-Hohman, Jonathan A. Lanning
Economics Department Working Papers
This study examines the changes in player compensation in Major League Baseball during the last three decades. Specifically, we examine the extent to which recently documented changes in players’ compensation structure based on certain types of productivity fits in with the longer term trends in compensation, and identify the value of specific output activities in different time periods. We examine free agent contracts in three-year periods across three decades and find changes to which players’ performance measures are significantly rewarded in free agency. We find evidence that the compensation strategies of baseball teams increased the rewards to “power” statistics like …
Compensating Against Turnover: Managers' Talent Retention Decisions In Major League Baseball Under A Budget Constraint, Emma Knoesen
Compensating Against Turnover: Managers' Talent Retention Decisions In Major League Baseball Under A Budget Constraint, Emma Knoesen
Scripps Senior Theses
From 1997 to 1999 and 2003 to the present, Major League Baseball has had a luxury tax on high payroll teams. This paper analyzes the impact of the tax as a budget constraint on teams’ ability to reward and retain high performing players. In contrast to other papers, we use wins above replacement (WAR), a popular sabermetrics statistic, to measure performance. Using this metric, we quantify the number of top performers, how this performance is rewarded with salary, and how salary impacts players’ mobility decisions. We conclude that when using WAR, the distribution of performance is not heavy tailed and …