For example, using statistics drawn from the national basketball league of 1986, Khan & Sherer found a ceteris paribus black salary short fall of about 20%.
Consumers (NBA FANS) may have discriminatory preferences for white stars but no real preference among black and white athletes of average ability. Found out that, whiter teams tended to be located in whiter metropolitan areas. Given their results, these authors
Brastow (1998) performed a salary regression similar to the Kahn and Sherer specification and found no evidence of racial discrimination. Their methodology, however, was based on the assumption that consumer discrimination is pervasive throughout the ability distribution. 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.
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