Player Salaries, Player Mobility and the Invariance Principle: Evidence from the National Hockey League

Philippe Cyrenne

Departmental Working Papers from The University of Winnipeg, Department of Economics

Abstract: This paper develops a bargaining model of wages and contract length as applied to a professional sports league. Using data based on the recent Collective Bargaining Agreement between players and owners in the National Hockey League, I examine the effect of restrictions on player contracting on both the mobility and salaries of players over the period 2005-2010. Using a variety of estimators both for player mobility and salary determination, I find some evidence that a player’s free agency status effects both mobility and player salaries, but significantly less than might be expected. A key result is that mobility needs to be taken into account when developing models of wage determination in professional sports.

JEL-codes: L1 L2 L4 L83 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2013-11
New Economics Papers: this item is included in nep-cul and nep-spo
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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