A REEXAMINATION OF SALARY DISCRIMINATION IN PROFESSIONAL BASKETBALL

Objective. Recent studies of race-based salary discrimination in profe ssional basketball have found that black players are paid less than wh ite players for similar levels of performance. This paper reexamines t he question using an alternate method of sample selection. Methods. Ra ther than use annual salaries for all players from a given season, thi s analysis will focus on free-agent salaries over a 12-year period. In much of the literature annual wage figures for players are measured a gainst performance that was conducted long after their multiyear contr acts, and the prevailing salaries used in the samples, were negotiated . By focusing solely on players who have recently negotiated new contr acts, a better fit between salary and past performance is achieved. Re sults. Controlling for performance and other explanatory effects, regr ession results indicate that no significant salary shortfall exists fo r black players. This null finding is supported by an accompanying Cho w test, which shows that the return in the form of salary to higher pe rformance levels is the same for both races. Conclusions. This study a nalyzes whether race-based salary discrimination exists in the NBA aft er measurement error prevalent in other analyses is reduced. Findings from a less noisy sample indicate that race is not a factor in determi ning salary. This suggests that, at least with regard to veteran free agents, the NBA is a level playing field for players of both races.