Minimum pay scale and career length in the NBA

• Autores: Johnny Ducking, Peter A. Groothuis, James Richard Hill
• Localización: Industrial Relations: A journal of Economy and Society, ISSN-e 1468-232X, Vol. 53, Nº. 4, 2014, págs. 617-635
• Idioma: inglés
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• Resumen

  • 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. The NFL has a similar minimum wage policy; research suggests that the introduction of this system shortened career length in the NFL. Using duration analysis, we fail to find evidence that the new multi-tiered minimum wage scale in the NBA increased the probability of exit.