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Race, Compensation and Contract Length in the NBA: 2001–2002*
Author(s) -
KAHN LAWRENCE M.,
SHAH MALAV
Publication year - 2005
Publication title -
industrial relations: a journal of economy and society
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.61
H-Index - 57
eISSN - 1468-232X
pISSN - 0019-8676
DOI - 10.1111/j.0019-8676.2005.00394.x
Subject(s) - ceteris paribus , salary , race (biology) , demographic economics , compensation (psychology) , economics , labour economics , psychology , sociology , microeconomics , social psychology , gender studies , market economy
We study race and pay in the NBA for 2001–2002. For players who were neither free agents nor on rookie scale contracts, there were large, statistically significant ceteris paribus nonwhite shortfalls in salary, total compensation, and contract duration. But for players under the rookie salary scale (first‐round draft picks) and free agents, race effects were small and insignificant. These results suggest discrimination against marginal nonwhite players.