Minimum Pay Scale and Career Length in the NBA

Johnny Ducking, Peter Groothuis and James Richard Hill

Industrial Relations: A Journal of Economy and Society, 2014, vol. 53, issue 4, 617-635

Abstract: type="main" xml:id="irel12071-abs-0001">

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.

Date: 2014
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Working Paper: Minimum Pay Scale and Career Length in the NBA (2012)
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