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Seniority Wages in the National Hockey League

Author

Listed:
  • James A. Brander

    (University of British Columbia)

  • Edward J. Egan

    (Rice University)

Abstract

We show that NHL player salaries exhibit a strong seniority wage structure, as performance-adjusted salaries rise significantly with age for most of the relevant range, peaking about age 32 for forwards. To explain this finding, we estimate a wage equation for NHL forwards, focusing on the league-imposed contractual structure. We show that contract type (determined largely by age) is a significant explanatory variable, as older “unrestricted free agents” earn relatively high performance-adjusted salaries. However, tenure with a given team and age have additional explanatory power even after correcting for contract type, as is consistent with conventional reasons for seniority wages.

Suggested Citation

  • James A. Brander & Edward J. Egan, 2018. "Seniority Wages in the National Hockey League," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 44(1), pages 84-96, January.
    • Handle: RePEc:pal:easeco:v:44:y:2018:i:1:d:10.1057_s41302-016-0070-1
    DOI: 10.1057/s41302-016-0070-1
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