Race, Compensation and Contract Length in the NBA: 2001-2002
Lawrence M. Kahn
Cornell University - School of Industrial and Labor Relations; CESifo (Center for Economic Studies and Ifo Institute for Economic Research); IZA Institute of Labor Economics
Emory University School of Law
Industrial Relations, Vol. 44, No. 3, pp. 444-462, July 2005
We study race and pay in the NBA for 2001-2002. For players who were neither free agents nor on rookie scale contracts, there were large, statistically significant ceteris paribus nonwhite shortfalls in salary, total compensation, and contract duration. But for players under the rookie salary scale (first-round draft picks) and free agents, race effects were small and insignificant. These results suggest discrimination against marginal nonwhite players.
Number of Pages in PDF File: 19
Date posted: June 28, 2005