Racial Discrimination in Baseball by sammyc2007

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									Racial Discrimination in Baseball
C.J. Norman ECO 4810. Senior Seminar Department of Economics Appalachian State University March 21, 2007

Is There Still Discrimination?




A lot has changed since 1947 when Jackie Robinson broke the color barrier in Major League Baseball But is there still discrimination in terms of salary?

Literature
  

Marburger, Daniel (1996) Palmer and King (2006) Reid, Clifford (1983)

Theory
Wage S

D=f (MPL)

L

Data
 

 

2006 Statistics only Used only outfielders that qualified for post season awards (minimum of 450 at bats) 55 players were used OPS was the strongest indicator of salary

Empirical Model



Salary= f (MPL, W)

Dependent Variable
   

Salary Average salary $5,164,971 Minimum $327,000 Maximum $27,000,000

Independent Variables
  


 

Race OPS Runs Batting Average Homeruns RBIs

  




Stolen bases Fielding Percentage Assists On Base Percentage Slugging Percentage

Results
 

Race turned out to be significant (t= -2.522) It turns out that OPS is the only key variable (t=2.530)
–

OPS is a strong statistic



According to the results, If a white and nonwhite player had the same OPS, the nonwhite player would make $3,296,168 more in that season

Summary
 

People only pay for OPS Whites were discriminated against

Future Research


Find a way to control rookies vs. veterans
–

Magglio Ordonez vs. Nick Swisher



Use more than 1 year of statistics


								
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