Does Racial Discrimination Exist Within the NBA? An Analysis Based on Salary‐per‐Contribution

Riguang Wen

Social Science Quarterly, 2018, vol. 99, issue 3, 933-944

Abstract: Objective To explore whether racial discrimination exists in athlete pay within the National Basketball Association (NBA). Methods I use the ratio between annual salary and standardized contribution to establish a salary‐per‐contribution index as a basis for comparison of salary differences between black and white NBA players. According to theory of social equity (Adams, 1965. Advances in Experimental Social Psychology 2(4):267–99), when considering salary equality, it is necessary to consider differences in both inputs (here, contributions) and outputs (salaries) (Scully. 1974. American Economic Review 64(6):915–30). Results For the period 1999–2016, salary‐per‐contribution is significantly higher for black players overall than for white players overall, being higher before 2006 (but not after). It is also higher for American (but not international) and nonrookie (but not rookie) black players than for white American and nonrookie players (respectively). A higher games started rate increases between black and white players. Conclusion Given poor fit of measuring salary discrimination, existing literature exploring racism in the NBA from the perspective of salary may have inaccurate conclusions.

Date: 2018
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