ME  Vol.4 No.2 , February 2013
Does Salary Discrimination by Nationality Exist? The Case of Nippon Professional Baseball League
ABSTRACT

This article focuses on the issue of nationality as related to salary discrimination in the Nippon Professional Baseball (NPB) league. Salary data for 663 players during the period from 2000 to 2008 was collected, and Quantile Regression (QR) was employed to investigate the nationality discrimination in salary. The main finding indicates that, on average, international players were paid 54.7% - 57.3% more than domestic players ceteris paribus. QR results show that the positive effect of nationality on salary is larger for players with relatively higher salaries. The finding indicates that an international player’s salary premium increases with salary.


Cite this paper
W. Jane, S. Chen and M. Kuo, "Does Salary Discrimination by Nationality Exist? The Case of Nippon Professional Baseball League," Modern Economy, Vol. 4 No. 2, 2013, pp. 93-101. doi: 10.4236/me.2013.42012.
References
[1]   E. Eschker, S. Perez and M. Siegler, “The NBA and the Influx of International Basketball Players,” Applied Economics, Vol. 36, No. 10, 2004, pp. 1009-1020. doi:10.1080/0003684042000246713

[2]   J. Gwartney and C. Haworth, “Employer Costs and Discrimination: The Case of Baseball,” Journal of Political Economy, Vol. 82, No. 4, 1974, pp. 873-881. doi:10.1086/260241

[3]   M. T. Kanazawa and J. P. Funk, “Racial Discrimination in Professional Basketball: Evidence from Nielsen Ratings,” Economic Inquiry, Vol. 39, No. 4, 2001, pp. 599-608. doi:10.1093/ei/39.4.599

[4]   S. Szymanski, “A Market Test for Discrimination in the English Professional Soccer Leagues,” Journal of Political Economy, Vol. 108, No. 3, 2000, pp. 590-603. doi:10.1086/262130

[5]   D. P. Wilson and Y. H. Ying, “Nationality Preferences for Labor in the International Football Industry,” Applied Economics, Vol. 35, No. 14, 2003, pp. 1551-1559. doi:10.1080/000368403200010048

[6]   Pedace, R., “Earnings, Performance, and Nationality Discrimination in a Highly Competitive Labor Market: An Analysis of the English Professional Soccer League.” Journal of Sports Economics, Vol. 9, No. 2, 2008, pp. 115-140. doi:10.1177/1527002507301422

[7]   G. Becker, “The Economics of Discrimination,” 2nd Edition, University of Chicago Press, Chicago, 1971.

[8]   G. W. Scully, “Economic Discrimination in Professional Sports,” Law and Contemporary Problems, Vol. 38, No. 1, 1973, pp. 67-84.

[9]   Raimondo, H., “Free Agents’ Impact on the Labor Market for Baseball Players,” Journal of Labor Research, Vol. 4, No. 2, 1983, pp. 183-93. doi:10.1007/BF02685176

[10]   J. R. Hill and W. Spellman, “Pay Discrimination in Baseball: Data from the Seventies,” Industrial Relations, Vol. 23, No. 1, 1984, pp. 103-112. doi:10.1111/j.1468-232X.1984.tb00879.x

[11]   K. J. Christiano, “Salary Discrimination in Major League Baseball: The Effect of Race,” Sociology of Sport Journal, Vol. 3, No. 2, 1988, pp. 144-153.

[12]   K. J. Christiano, “Salaries and Race in Professional Baseball: Discrimination 10 Years Later,” Sociology of Sport Journal, Vol. 5, No. 2, 1986, pp. 136-149.

[13]   O. B. Bodvarsson and S. P. Pettman, “Racial Wage Discrimination in Major League Baseball: Do Free Agency and League Size Matter?” Applied Economics Letters, Vol. 9, No. 12, 2002, pp. 791-796. doi:10.1080/13504850210135714

[14]   E. Brown, R. Spiro and D. Keenan, “Wage and Nonwage Discrimination in Professional Basketball: Do Fans Affect It?” American Journal of Economics and Sociology, Vol. 50, No. 3, 1991, pp. 333-345. doi:10.1111/j.1536-7150.1991.tb02300.x

[15]   L. M. Kahn and P. D. Sherer, “Racial Differences in Professional Basketball Players’ Compensation,” Journal of Labor Economics, Vol. 6, No. 1, 1988, pp. 40-61. doi:10.1086/298174

[16]   B. H. Hamilton, “Racial Discrimination and Professional Basketball Salaries in the 1990s,” Applied Economics, Vol. 29, No. 3, 1997, pp. 287-296. doi:10.1080/000368497327065

[17]   I. Preston and S. Szymanski, “Racial Discrimination in English Football,” Scottish Journal of Political Economy, Vol. 47, No. 4, 2000, pp. 342-63. doi:10.1111/1467-9485.00168

[18]   Jones, J. C. H. and W. D. Walsh, “Salary Determination in the National Hockey League: The Effects of Skills, Franchise Characteristics, and Discrimination,” Industrial and Labor Relations Review, Vol. 41, No. 4, 1988, pp. 592-604. doi:10.2307/2523593

[19]   N. Longley, “Salary Discrimination in the National Hockey League: The Effects of Team Location,” Canadian Public Policy, Vol. 21, No. 4, 1995, pp. 413-422.

[20]   N. Longley, “The Effects of Inter-League Competition on Labor Market Discrimination: Assessing the Impacts of the World Hockey Association,” The Social Science Journal, Vol. 40, No. 4, 2003, pp. 651-56. doi:10.1016/S0362-3319(03)00076-4

[21]   G. W. Scully, “The Economics of Discrimination in Professional Sports: The Case of Baseball,” Paper Prepared for a Conference on Government and the Sports Business, 6 and 7 December 1971.

[22]   A. H. Pascal and L. A. Rapping, “The Economics of Racial Discrimination in Organized Baseball,” In: A. H. Pascal, Ed., Racial Discrimination in Economic Life, D.C. Heath, Lexington, 1972, pp. 119-156.

[23]   L. M. Kahn, “Managerial Quality, Team Success, and Individual Player Performance in Major League Baseball.” Industrial and Labor Relations Review, Vol. 46, No. 3, 1993, pp. 531-547. doi:10.2307/2524551

[24]   R. Koenker and G. S. Bassett, “Regression Quantile,” Econometrica, Vol. 46, No. 1, 1978, pp. 33-50. doi:10.2307/1913643

[25]   R. Koenker, “Quantile Regression,” Cambridge University Press, Cambridge, No. 38, 2005. doi:10.1017/CBO9780511754098

 
 
Top