Racial Differences in National Basketball Association Players' Salaries: A New Look

Matthew S. Dey

The American Economist, 1997, vol. 41, issue 2, 84-90

Abstract: This article empirically examines racial salary differences in the National Basketball Association from 1987 to 1993. The results of our analysis depict the NBA as a racially equal labor market which experienced tremendous growth over this period. In contrast to studies using mid-1980's data which estimated a white advantage between twelve and twenty-five percent, we find that no significant racial wage differential exists. The convergence of the salary differential between 1984 and 1993 can be fully explained by a narrowing in the relative prices paid for additional production and an increase in the relative production of black players. Furthermore, a regression capturing customer preferences yields the result that customers, who during the mid-1980's preferred white players, no longer differentiate between white and black players.

Date: 1997
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Persistent link: https://EconPapers.repec.org/RePEc:sae:amerec:v:41:y:1997:i:2:p:84-90

DOI: 10.1177/056943459704100211

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