This paper examines employment decisions by employers at the firm level, of an oligopsonistic market for labor, in reference to the distribution of salary among workers within the firm and its effect on output or performance. The application of this study is the labor market for professional baseball in America, and how general managers of major league organizations distribute their payroll to acquire players in order to produce a winning team. The hypothesis of the study is that wage disparity will have a significant negative relationship to team winning percentage. The analysis includes the evaluation of salary statistics and performance statistics of Major League Baseball organizations during the 2000-2012 seasons. This time frame includes a more stagnant period of the league and is the most recent analysis of the related literature. The empirical results do not support the hypothesis, which contradicts results from previous literature that greater salary dispersion yields poorer team performance.
Miller, Bryan J., "The New Era of Moneyball: An Analysis of MLB Teams’ Payroll Distribution and Its Effect on Team Performance" (2014). Senior Independent Study Theses. Paper 6022.
Bachelor of Arts
Senior Independent Study Thesis
© Copyright 2014 Bryan J. Miller