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Racial Discrimination in Baseball

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Title: Racial Discrimination in Baseball


1
Racial Discrimination in Baseball
  • C.J. Norman
  • ECO 4810. Senior Seminar
  • Department of Economics
  • Appalachian State University
  • March 21, 2007

2
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?

3
Literature
  • Marburger, Daniel (1996)
  • Palmer and King (2006)
  • Reid, Clifford (1983)

4
Theory
Wage
S
Df (MPL)
L
5
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

6
Empirical Model
  • Salary f (MPL, W)

7
Dependent Variable
  • Salary
  • Average salary 5,164,971
  • Minimum 327,000
  • Maximum 27,000,000

8
Independent Variables
  • Race
  • OPS
  • Runs
  • Batting Average
  • Homeruns
  • RBIs
  • Stolen bases
  • Fielding Percentage
  • Assists
  • On Base Percentage
  • Slugging Percentage

9
Results
  • Race turned out to be significant (t -2.522)
  • It turns out that OPS is the only key variable
    (t2.530)
  • OPS is a strong statistic
  • According to the results, If a white and
    non-white player had the same OPS, the non-white
    player would make 3,296,168 more in that season

10
Summary
  • People only pay for OPS
  • Whites were discriminated against

11
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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