nep-spo New Economics Papers
on Sports and Economics
Issue of 2016‒06‒25
two papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Quality Leisure Time and Youth Development By Fuchs, Benjamin; Osikominu, Aderonke
  2. Does Increasing Salary Discrimination in the NBA Reflect Disparity of Fans' Purchasing Power? By Hisahiro Naito; Yu Takagi

  1. By: Fuchs, Benjamin; Osikominu, Aderonke
    Abstract: This paper first develops a simple model to clarify the links between leisure time use and skill formation. It then explores empirically how youths allocate their time. We focus on sports as a popular activity and estimate its effect on behavioral and economic outcomes. We exploit data from the German Socio-Economic Panel that offers the unique advantage of both a large, representative sample and high quality behavioral measures. We employ a flexible strategy combining propensity score matching and regression to account for self selection. Our results suggest that structured leisure activities like sports contribute to the development of nonacademic skills.
    Keywords: Human Capital; leisure activities; nonacademic skills; sports; treatment effect; youth development
    JEL: I21 J13 J24
    Date: 2016–06
  2. By: Hisahiro Naito; Yu Takagi
    Abstract: From the late 2000s, racial salary discrimination against black players emerged in the National Basketball Association (NBA) league. At the same time in the United States, the income gap between white and black citizens, which had been decreasing in the previous 20 years, stalled in the mid-2000s and started to increase again from the late 2000s. In this study, we examine whether increasing racial salary discrimination against black players in the NBA is a reflection of the non-shrinking disparity of purchasing power of white and black citizens. Using census data, we calculate the median income ratio of white and black males in each metropolitan area where at least one NBA team is located. Then, we examine whether the white premium of the salary of an NBA player is correlated with the median income ratio between white and black citizens of the metropolitan area where the player's team is located. We find that the white premium becomes higher in a metropolitan area where the median income gap is smaller. This suggests that the non-shrinking income gap between white and black citizens is not the cause of increasing salary discrimination against black players in the NBA in the late 2000s and 2010s.
    Date: 2016–06

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