Previous studies claim that NBA wage gaps in the 1980s are attributable to customer discrimination and monopsonistic wage discrimination. Michael (1988) and Walton &Gardella (2000) state that, employer discrimination was an important source of those gaps and that one reason they vanished was because reduced monopsony power eradicated employer discrimination. Against this background, this paper will specifically address the following research questions. Is the evidence of salary discrimination between Black and White players in the National Basketball Association? What factors are specifically responsible for salary discrimination for a Black and White professional in NBA? Finally, what should be the possible effect on a player’s performance if the player is being paid low when compared to his other team professionals with similar experience and performance. What have the various sporting teams doing to address salary discrimination amongst professionals? 1.2 Choice of Subject As a basket ball fan and a keen supporter of the sport, researches like this one will add to the growing pool of existing literature.
Going through previous research on the subject, I came to realized attention have been focus on salary discrimination between white and black professionals. While some group of researchers such as Khan seems to have found enough evidence of the existence of salary discrimination, others have argued the differences in salary between black and white players have long disappeared.
The is now a controversy as recent evidence pointed enough evidence of salary discrimination. Today, many researchers have argued that over 80 percent of NBA players are African American and moreover, many of the most celebrated athletes today, such as Michael Jordan and Kobe Bryant, are African American basketball players. It is therefore surprising that numerous studies provide evidence of discrimination in the NBA labor market.
Thus a research like this one will not only be of significant value to politicians, economists, policy makers but will add to the mounting evidence that the is significance level of discrimination in the professional basketball between the Black and white race. 1.3 Purpose and Objective of study This research has as it main objective to examine evidence of salary discrimination between black and white players in the NBA. This will be possible using a sample of players and their salary structure drawn from the NBA teams for the last two seasons.
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