ABSTRACT

This chapter reviews the research utilizing the unique environment of the National Basketball Association (NBA). It summarizes what has been learned and what remains unknown about the world of professional basketball. Much of the research on the NBA has focused upon the issue of racial discrimination. Such a focus is inspired by the prominence of minority participation in the NBA. The story of racial discrimination dominates the study of basketball economics. To summarize, the study of NBA salary discrimination has utilized a variety of methodologies and offered a mix of results. Although early studies consistently presented evidence of wage discrimination, more recent studies have often been unable to find evidence of discrimination. Unlike the issue of salary discrimination, the study of hiring in the NBA has been relatively sparse. Economists typically assume that economic actors are rational.