Is There a Wage Premium or Wage Discrimination For Foreign-Born Players in the NBA?

The influx of international players into the NBA has led researchers to investigate whether either pay discrimination or a pay premium exists for these new entrants. Previous results have been mixed. Using similar techniques with a longer unbalanced panel dataset (1989-2013) that covers all the year...

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Bibliographic Details
Published in:International journal of sport finance 2017-08, Vol.12 (3), p.204-221
Main Authors: Hill, James Richard, Groothuis, Peter A
Format: Article
Language:English
Subjects:
Alliances
Basketball players
Black athletes
Collective bargaining
Compensation and benefits
Datasets
Demographic aspects
Economic models
Economics
Employment discrimination
Globalization
Ice hockey
Labor contracts
Labor market
Noncitizens
Prejudice
Professional baseball
Professional basketball
Professional hockey
Racial discrimination
Sports management
Wage differential
Wage gap
Wages & salaries
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Summary:The influx of international players into the NBA has led researchers to investigate whether either pay discrimination or a pay premium exists for these new entrants. Previous results have been mixed. Using similar techniques with a longer unbalanced panel dataset (1989-2013) that covers all the years of the previous studies, we test for the robustness of the results. We suggest that discrimination results are quite sensitive to the specifications and techniques used. We find that foreign wage premiums exist only for early foreign entrants and neither pay discrimination nor a wage premium exist for players at the end of our panel.
ISSN:1558-6235
1930-076X