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Race, Technical Efficiency, and Retention: The Case of NBA Coaches

Author

Listed:
  • Rodney Fort

    (University of Michigan)

  • Young Hoon Lee

    (Sogang University, Seoul)

  • David Berri

    (California State University-Bakersfield)

Abstract

Despite the common perception that African-American coaches face discrimination obstacles, only two rigorous statistical studies exist that actually address the issue of racial variation in retention of coaches. Neither study accounts for variation in the level of talent across coaches and the production of wins. We examine the difference between retention of African-American and white NBA coaches based on technical efficiency calculations from stochastic production frontier estimates of team win production. First, we detect no difference in technical efficiency by race of the coach. Second, the evidence is consistent with the idea that coaches are retained based on their technical efficiency. Finally, the evidence fails to support any difference in retention of NBA coaches by race. These results offer finance insights for practitioners and raise methodology questions about retention discrimination findings in the NFL.

Suggested Citation

  • Rodney Fort & Young Hoon Lee & David Berri, 2008. "Race, Technical Efficiency, and Retention: The Case of NBA Coaches," International Journal of Sport Finance, Fitness Information Technology, vol. 3(2), pages 84-97, May.
    • Handle: RePEc:jsf:intjsf:v:3:y:2008:i:2:p:84-97
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    Cited by:

    1. Rodney Paul & Andrew Weinbach & Justin Mattingly, 2018. "Tests of Racial Discrimination in a Simple Financial Market: Managers in Major League Baseball," IJFS, MDPI, vol. 6(1), pages 1-10, March.

    More about this item

    Keywords

    Race; retention; stochastic production frontier analysis; NBA coaches.;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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