Does An All-Star Premium Exist in the NBA? An Econometric Analysis of NBA Player Salaries from 1999-2006

Abstract

This thesis is a salary determination model for NBA players. It presents a review of previously published literature as well as discusses background information on the structure of the NBA’s labor market. It uses the human capital approach to wage determination to create an estimating equation. It finds that for the period tested an all-star premium does exist. Lastly the findings are evaluated in terms of the NBA as it exists today in an effort to offer some insight into the implications of the results on the future performance of that industry.