Wage and Nonwage Discrimination in Professional Basketball: Do Fans Affect It?

Abstract

Abstract. Recent research suggests there is substantial wage discrimination against blacks in professional basketball, and that fans are the source of this discrimination. The use of multiple regression analysis does indicate a salary shortfall for black players of fourteen to sixteen percent compared with salaries of white players with comparable on‐court performance. To see whether this shortfall is likely to be due to fan discrimination as the relatively scarce white talent is bid into cities with many white fans, the racial composition of teams is related to the proportion of black residents among the populations of franchise cities. There is statistically significant evidence of geographical sorting by race. Evidence of racial bias is less obvious in contexts where a team's performance would be jeopardized, however. Thus, no evidence is found that fan attendance moves inversely with the percentage of playing time accorded black players, and only weak evidence is found that black players have to be better than white players to enter the National Basketball Association (NBA).