Testing the Determinants of Income Distribution in Major League Baseball

R. Todd Jewell, Michael A. McPherson and David J. Molina

Economic Inquiry, 2004, vol. 42, issue 3, 469-482

Abstract: Using data from U.S. Major League Baseball, this article compares parametric and nonparametric Gini coefficients for each team and year. We employ a panel-data model to investigate the time-series and cross-sectional factors affecting the Gini coefficients and the parameters of the preselected distribution. We find that much of within-team income distribution is determined by time-related variables, with the 1994 MLB strike having an especially strong effect. A team's market potential does not seem to affect its salary distribution, but the average age of the players on a team's roster does. Furthermore, inequality first increases with team payroll, then decreases before increasing again. (JEL D31, L83) Copyright 2004, Oxford University Press.

JEL-codes: D31 L83 (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (3)

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