Work detail

An Empirical Investigation of Wage Discrimination in Professional Football

Author: Bc. Jakub Blaha
Year: 2017 - summer
Leaders: Ing. David Kocourek
Consultants:
Work type: Bachelors
Language: English
Pages: 68
Awards and prizes:
Link: https://is.cuni.cz/webapps/zzp/detail/185515/
Abstract: Salary discrimination is a phenomenon that arises from ineffective behaviour
of economic subjects. Even though its presence is incompatible with the theory
of profit maximization, salary inequality still persists in the human society.
Nevertheless, the investigation of this topic has been largely unheeded in the
environment of professional football. In our empirical research, we use the most
recent data to investigate the salary gap between white, African American and
Hispanic players in the American Major League Soccer. Besides ordinary least
squares method that focuses on the impact of ethnicity for the average player,
we adopted the method of quantile regression to reveal wage gap between players
with below-average pays. Observing each player’s performance for 3 seasons,
we uncovered salary discrimination against African Americans and Hispanics
in the lowest decile of the salary distribution that amounts to 18.9% and 15.3%,
respectively. Furthermore, we utilized the difference-in-differences (DID) estimator
to find no effect of the increasing level of invested money on the wage
gap.
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