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Compensating Wage Differentials and Wage Discrimination in Major League Baseball

Author

Listed:
  • Wen-Jhan Jane
  • Yu-Shan Kuo
  • Jye-Shyan Wang
  • Pei-Hsin Fang

Abstract

Using Major League Baseball (MLB) players who had the ability to bargain for new contracts between the years 2009 and 2013 as a sample, empirical results indicated that contract length had a significant positive influence on salary. The salaries of players who had extended their current contracts met the assumptions of the theory of compensating wage differentials, while those of free agents showed no compensating wage differential effects. Finally, the results suggest discrimination against Latino players.

Suggested Citation

  • Wen-Jhan Jane & Yu-Shan Kuo & Jye-Shyan Wang & Pei-Hsin Fang, 2017. "Compensating Wage Differentials and Wage Discrimination in Major League Baseball," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 8(2), pages 194-212, April.
    • Handle: RePEc:jfr:ijfr11:v:8:y:2017:i:2:p:194-212
    DOI: 10.5430/ijfr.v8n2p194
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