Welcome to the new version of CaltechAUTHORS. Login is currently restricted to library staff. If you notice any issues, please email coda@library.caltech.edu
Published September 19, 2017 | Submitted
Report Open

Pay and Performance in Baseball: Modeling Regulars, Reserves and Expansion


Although the relationship between pay and performance in baseball has been convincingly demonstrated by Scully, a number of unresolved questions remain. Using a large sample of player salaries from contracts on file at the American League office, new estimates of this relationship are reported. The primary findings are as follows. First, while Scully's basic results are qualitatively robust, the salary elasticities for various performance and experience variables are substantially lower for our sample and specification. Second, for most variables, recent performance, as well as career average, contributes to the explanation of salary differences. Third, expansion has a significant effect on salary structure, and, in our model, makes it statistically invalid to estimate a single salary equation from pooled time-series data that includes an expansion year.

Attached Files

Submitted - sswp527.pdf


Files (383.0 kB)
Name Size Download all
383.0 kB Preview Download

Additional details

August 19, 2023
January 14, 2024