Resumen de Minimum pay scale and career length in the NBA

Johnny Ducking, Peter A. Groothuis, James Richard Hill

• 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.