Heavy Lifting - thoughts and web finds by an economist
     I also contribute to Division of Labour Load HL's Front Page
Wednesday, March 14, 2007

Updated working paper

Believe it or not, I am actually working rather than only blogging. Next week I am going to West Virginia University at the invitation of their Department of Economics. Here's the abstract of the paper I'll present and a link to the paper itself:
The Introduction of the Reserve Clause in Major League Baseball: Evidence of its Impact on Select Player Salaries During the 1880s
with Jennifer K. Ashcraft

This paper investigates the introduction of the reserve clause in Major League Baseball during the 1880s. Taking advantage of a unique data set describing the salaries for twenty nine high-quality players throughout the decade of the 1880s, we investigate the impact of the reserve clause as it evolved from a "gentleman's agreement" to a formal contract stipulation. We test three specific hypotheses concerning the reserve clause: its effect on average salaries, on the remuneration to marginal product, and the premium paid to a player for changing teams. The evidence suggests that introducing the reserve clause reduced average salaries and the premium for changing teams; detectable monopsony power was transferred to team owners almost immediately. However, there was no statistically significant impact of the reserve clause on how much players were paid for their marginal product. The empirical results indicate that reserve clause shifted considerable monopsony power to team owners immediately after it was instituted.

PDF version of our paper here

Comments: Post a Comment



Purchase




Le Chai - galerie du vin



Support



Popularity

Posts that contain Craig Depken per day for the last 90 days.



Contacts

Heavy Lifting's Main Page
Email Me
Atom Feed

WWW
Heavy Lifting




Great Links

Money I Found Today

Heavy Lifting - Firehose style (56k warning)



Recent Posts

- Updated working paper




Archives


home


Visitors
Site Meter Blogroll Me!



Credits

Modified maystar design
powered by blogger