nep-cul 2013-12-20 papers

on Cultural Economics

Issue of 2013‒12‒20
one paper chosen by
Roberto Zanola
University Amedeo Avogadro

Player Salaries, Player Mobility and the Invariance Principle: Evidence from the National Hockey League By Philippe Cyrenne

Player Salaries, Player Mobility and the Invariance Principle: Evidence from the National Hockey League

By:	Philippe Cyrenne
Abstract:	This paper develops a bargaining model of wages and contract length as applied to a professional sports league. Using data based on the recent Collective Bargaining Agreement between players and owners in the National Hockey League, I examine the effect of restrictions on player contracting on both the mobility and salaries of players over the period 2005-2010. Using a variety of estimators both for player mobility and salary determination, I find some evidence that a player’s free agency status effects both mobility and player salaries, but significantly less than might be expected. A key result is that mobility needs to be taken into account when developing models of wage determination in professional sports.
JEL:	L1 L2 L4 L83
Date:	2013–11
URL:	http://d.repec.org/n?u=RePEc:win:winwop:2013-04&r=cul

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