2012-07-29 papers

on Sports and Economics

Issue of 2012–07–29
one paper chosen by
Humberto Barreto, DePauw University

Minimum Pay Scale and Career Length in the NBA By Johnny Ducking; Peter A. Groothuis; James Richard Hill

Minimum Pay Scale and Career Length in the NBA

By:	Johnny Ducking; Peter A. Groothuis; James Richard Hill
Abstract:	We use data from the National Basketball Association (NBA) to analyze the impact of minimum salaries on an employee’s career length. The NBA has a salary structure in which the minimum salary a player can receive increases with the player’s years of experience. Salary schedules similar to the NBA’s exist in public education, federal government agencies, the Episcopalian church, and unionized industries. Even though the magnitude of the salaries in the NBA differs from other industries, this study provides insight to the impact of this type of salary structure on career length. Using duration analysis, we find statistically significant evidence that minimum salaries shorten career length. Key Words:
Date:	2012
URL:	https://d.repec.org/n?u=RePEc:apl:wpaper:12-02

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