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Team and player effects on NHL player salaries: a hierarchical linear model approach

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  • Leo Kahane

Abstract

This paper employs a hierarchical linear model (HLM) to assess the importance of both player- and team-level attributes in determining National Hockey League (NHL) player salaries. Empirical results show that there are significant differences in mean salaries and rewards to performance across teams and that these differences can be partially explained by differences in team revenues. Implications for research in other industries are considered.

Suggested Citation

  • Leo Kahane, 2001. "Team and player effects on NHL player salaries: a hierarchical linear model approach," Applied Economics Letters, Taylor & Francis Journals, vol. 8(9), pages 629-632.
    • Handle: RePEc:taf:apeclt:v:8:y:2001:i:9:p:629-632
    DOI: 10.1080/13504850010028607
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    References listed on IDEAS

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    1. J. C. H. Jones & William D. Walsh, 1988. "Salary Determination in the National Hockey League: The Effects of Skills, Franchise Characteristics, and Discrimination," ILR Review, Cornell University, ILR School, vol. 41(4), pages 592-604, July.
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    3. Rumberger, Russell W. & Thomas, Scott L., 1993. "The economic returns to college major, quality and performance: A multilevel analysis of recent graduates," Economics of Education Review, Elsevier, vol. 12(1), pages 1-19, March.
    4. Idson, Todd L., 1995. "Team production effects on earnings," Economics Letters, Elsevier, vol. 49(2), pages 197-203, August.
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    Cited by:

    1. Christer Thrane, 2019. "Performance and Actual Pay in Norwegian Soccer," Journal of Sports Economics, , vol. 20(8), pages 1051-1065, December.
    2. Benno Torgler, 2004. "?La Grande Boucle?: Determinants of Success at the Tour de France," CREMA Working Paper Series 2004-22, Center for Research in Economics, Management and the Arts (CREMA), revised May 2005.
    3. Benno Torgler, 2007. "“La Grande Boucleâ€," Journal of Sports Economics, , vol. 8(3), pages 317-331, June.
    4. Richard J. Cebula, 2009. "Teaching How Private Enterprise Works Using Professional Sports: A Brief Note on the Case of Individual NHL Players' Salaries," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 24(Spring 20), pages 165-174.
    5. Benno Torgler & Sascha Schmidt, 2007. "What shapes player performance in soccer? Empirical findings from a panel analysis," Applied Economics, Taylor & Francis Journals, vol. 39(18), pages 2355-2369.
    6. Kenneth H. Brown & Lisa K. Jepsen, 2009. "The Impact of Team Revenues on MLB Salaries," Journal of Sports Economics, , vol. 10(2), pages 192-203, April.
    7. Claude Vincent & Byron Eastman, 2009. "Determinants of Pay in the NHL," Journal of Sports Economics, , vol. 10(3), pages 256-277, June.
    8. Aju J. Fenn & Lucas Gerdes & Samuel Rothstein, 2019. "Country of Origin Effects on the Average Annual Values of NHL Player Contracts," IJFS, MDPI, vol. 7(2), pages 1-11, May.
    9. Terry, Ryan P. & McGee, Jeffrey E. & Kass, Malcolm J., 2018. "The not-so-free agent: Non-performance factors that contribute to free agent compensation premiums," Sport Management Review, Elsevier, vol. 21(2), pages 189-201.
    10. Franziska Prockl & Bernd Frick, 2018. "Wage Determination In A Regulated Labor Market: Empirical Evidence From Major League Soccer," Working Papers Dissertations 39, Paderborn University, Faculty of Business Administration and Economics.
    11. Derek Lanoue, 2015. "Does it pay to win the Stanley Cup?," Working Papers 1502, University of Windsor, Department of Economics.
    12. Stephen T. Easton & Duane W. Rockerbie, 2005. "Overtime! Rules and Incentives in the National Hockey League," Journal of Sports Economics, , vol. 6(2), pages 178-202, May.

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