Abstract
This article focuses on the issue of nationality as related to salary discrimination in the Nippon Professional Baseball (NPB) league. Salary data for 663 players during the period from 2000 to 2008 was collected, and Quantile Regression (QR) was employed to investigate the nationality discrimination in salary. The main finding indicates that, on average, international players were paid 54.7% - 57.3% more than domestic players ceteris paribus. QR results show that the positive effect of nationality on salary is larger for players with relatively higher salaries. The finding indicates that an international player’s salary premium increases with salary.
Highlights
Due to the rapid progress of information and communication technology (ICT), the Nippon Professional Baseball (NPB) league has begun to expand its global makeup
This article focuses on the issue of nationality as related to salary discrimination in the Nippon Professional Baseball (NPB) league
Quantile Regression (QR) results show that the positive effect of nationality on salary is larger for players with relatively higher salaries
Summary
Due to the rapid progress of information and communication technology (ICT), the Nippon Professional Baseball (NPB) league has begun to expand its global makeup. As the literature in sports economics has widely examined the question of racial and ethnic salary discrimination, the upsurge in international players in the NPB inspires a new and interesting question about whether salary differentials exist by nationality. Whether the NPB differentiates pecuniary treatment between international players and Japan-born players. International players may fare well relative to native players in Japan. The famous hypothesis of a winner’s curse argues that teams may overestimate a player’s marginal revenue product (MRP) since limited information and trade uncertainty exists in the labor market [1]. When international players have no Japanese baseball experience, NPB teams lack comparative information regarding their true talent and are apt to overestimate their talent, which creates a tendency to overpay international players
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