Inequality in Pay: A Study of Wage Disparity in the NFL

Abstract

Using a sample that spans 10 seasons from 1994-95 to 2003-2004, we study the wage differential across different racial groups in the NFL. Controlling for player and team characteristics, individual performance attributes, and player positions, fixed-effect regressions on log of salary reveal a positive and significant pay premium for non-white athletes. However, sub-period estimation suggests that this premium was strongest for the earlier sample, and is not significant for recent years. Individual positional regressions suggest that traditional white skill positions have a significant premium for white athletes, while tradition non-white skill positions have no premium. This premium persists controlling for experience and quality of the athlete.

Keywords: Wage Inequality, Discrimination, NFL