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Please use this identifier to cite or link to this item: http://arks.princeton.edu/ark:/88435/dsp01xs55mc153
Title: RISK PREFERENCES AND WAGE DETERMINATION IN THE MAJOR LEAGUE BASEBALL LABOR MARKET
Authors: Whitaker, Kevin
Advisors: Norets, Andriy
Department: Economics
Class Year: 2013
Abstract: There have been few empirical analyses of firms’ risk preferences with respect to labor, largely because the necessary information is not available in many industries. In this study, a model of salary determination in Major League Baseball is developed and used to measure the risk preferences of employers. Using a sample of 1,599 contracts signed from 1993 to 2012, MLB teams are found to be risk-seeking in labor, but only for short-term contracts; in contracts spanning more than one year, teams show no significant risk preference. This pattern is consistent with a new theory of wage determination, in which firms prefer risky workers while risky workers prefer long-term income security.
Extent: 74 pages
URI: http://arks.princeton.edu/ark:/88435/dsp01xs55mc153
Access Restrictions: Walk-in Access. This thesis can only be viewed on computer terminals at the Mudd Manuscript Library.
Type of Material: Princeton University Senior Theses
Language: en_US
Appears in Collections:Economics, 1927-2016

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