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Compensating wage differentials: Evidence from the National Hockey League

Leo H. Kahane

Economics Letters, 2024, vol. 241, issue C

Abstract: Using data for 1,471 unrestricted free agent player contracts in the NHL, this paper finds evidence that players are willing to sacrifice earnings to play on a higher quality team, and this tradeoff increases with player age. This result, which is consistent with the theory of compensating wage differentials, is robust to multiple specifications and estimation methodologies.

Keywords: Compensating wage differentials; Labor markets; National Hockey League; Amenities (search for similar items in EconPapers)
JEL-codes: J31 J41 L83 Z21 Z22 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:241:y:2024:i:c:s016517652400315x

DOI: 10.1016/j.econlet.2024.111831

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