Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/44152
Authors: 
Papps, Kerry L.
Year of Publication: 
2010
Series/Report no.: 
Discussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5133
Abstract: 
The establishment of the free agency system in the 1970s resulted in large salary increases among professional baseball players. Historical data show that players have tended to perform better at early stages of their careers since free agency was introduced. Under the current salary bargaining system, players only become eligible for salary arbitration and free agency at predetermined points in their careers, resulting in sudden changes in salary growth rates at these points. Using data on official days of major league service, it is found that players with high expected salary growth perform better, consistent with efficiency wage theory.
Subjects: 
efficiency wages
productivity
baseball
JEL: 
J24
J31
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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