Minimum Pay Scale and Career Length in the NBA |
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| Authors: | Johnny Ducking Peter A. Groothuis James Richard Hill |
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| Affiliation: | 1. North Carolina A&T State University, , Greensboro, North Carolina;2. Appalachian State University, , Boone, North Carolina;3. Central Michigan University, , Mt. Pleasant, Michigan |
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| Abstract: | We use data from the National Basketball Association (NBA) to analyze the impact of minimum salaries on an employee's career length. The NBA has a salary structure in which the minimum salary a player can receive increases with the player's years of experience. The NFL has a similar minimum wage policy; research suggests that the introduction of this system shortened career length in the NFL. Using duration analysis, we fail to find evidence that the new multi‐tiered minimum wage scale in the NBA increased the probability of exit. |
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