Social and Behavioral Sciences Commons^™

Integrated Test For Exploitation And Discrimination In The National Basketball Association, Kathleen Carney

Honors Theses

Over the past thirty years, economists have become increasingly interested in the labor market for professional sports. These studies have focused primarily on exploitation, the difference between marginal revenue product and salary, or discrimination, salary differentials based on race, or ethnic background. This paper attempts to combine both areas of research, that is, to explain the systematic deviation of marginal revenue product from salary as a function of race, or ethnic background. Using NBA data collected over three seasons 1995-98, we specify a three-equation model, an enhancement of the Scully two-step method presented in 1976. We then ask if players …