Discrimination in NHL Economics

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Questions and Answers

What is the main reason why some employers might discriminate against certain groups?

Employers may have a preference for certain groups and are willing to sacrifice profits to avoid associating with groups they dislike. (correct)

Employers may lack access to information about the productivity of different groups.

Employers may believe that certain groups are less productive than others.

Employers may face pressure from fans to hire players from a specific group.

Which of the following is NOT a reason cited in the text for why European players might have faced discrimination in the NHL?

European players were perceived as less skilled than North American players. (correct)

The NHL may have had a history of hiring only North American players.

The supply of North American players may have been greater than the demand, leading to decreased demand for European players.

Canadian teams may have had a preference for North American players.

What is the 'discrimination coefficient' (dε) in Becker’s model of discrimination?

The percentage of workers in a given industry who belong to the preferred group.

The additional amount employers are willing to pay for workers from the preferred group. (correct)

The ratio of the supply of workers from the preferred group to the supply of workers from the non-preferred group.

The difference in wages between the preferred and non-preferred groups.

What is the implication for European players in the NHL if the 'taste for discrimination' is strong enough and the supply of North American players is high?

European players will face difficulty finding employment in the NHL. (B) Signup and view all the answers

Which of the following examples illustrates the concept of discrimination in the NHL as described in the text?

A team choosing a player from a specific region even though another player from a different region might be equally qualified. (B) Signup and view all the answers

The text mentions that the National and American Leagues in baseball did not hire any black players between 1888 and 1947. What is the likely reason for this, based on the economic theory of discrimination?

Teams were willing to sacrifice profits to avoid associating with black players. (B) Signup and view all the answers

Imagine two players, one North American and one European, with identical skills and experience. How would the wage for the North American player compare to the wage for the European player in the presence of a 'taste for discrimination'?

The European player would be offered a lower wage. (D) Signup and view all the answers

What is the implication of a discrimination coefficient (dε) being equal to 0.1?

Employers are willing to pay 10% more for workers from the preferred group. (A) Signup and view all the answers

What was the percentage of black head coaches in the NFL in 2011?

22% (D) Signup and view all the answers

What does the Rooney Rule require NFL teams to do?

Interview minority candidates for head coaching positions (C) Signup and view all the answers

Which of the following groups has shown an absence in coaching ranks across leagues, except the WNBA?

Women (C) Signup and view all the answers

What issue has been raised about the interviews conducted under the Rooney Rule?

They may be seen as a mere formality without real opportunity (D) Signup and view all the answers

What significant finding was highlighted about female coaches in the NFL in 2020?

The NFL had 12 female assistant coaches (A) Signup and view all the answers

What reason was given for the absence of women in coaching roles?

Statistical discrimination may discourage women from pursuing coaching (A) Signup and view all the answers

According to research, how has the number of black head coaches in the NFL changed from 2011 to 2020?

Decreased from 22% to 9.4% (A) Signup and view all the answers

What misconception is addressed regarding Eugene Chung's experience in interviews for head coaching positions?

That he was not considered a real minority by the team (A) Signup and view all the answers

What is the difference in salary that the owner feels he is paying between Eddie and Jiri?

$100,000 (A) Signup and view all the answers

What is the owner's discrimination coefficient?

0.2 (C) Signup and view all the answers

If the owner's discrimination against 'E' players was even stronger, what would likely happen to the salary offered to Jiri?

The salary offered to Jiri would increase. (B) Signup and view all the answers

In what scenario would the owner be willing to hire a player from Europe?

If European players are willing to work for a salary that is lower than what the owner feels he pays, the owner will hire them. (B) Signup and view all the answers

What would happen to the salaries of North American 'NA' players if there was a large increase in the demand for 'NA' players?

The salaries would increase. (B) Signup and view all the answers

What is the main reason why European players are worse off in this scenario?

They are paid less than equally productive North American players. (C) Signup and view all the answers

What is the effect on the owner's profits because of his discrimination?

His profits decrease. (A) Signup and view all the answers

Even though the owner is discriminating against European players, why does he still employ them?

He has to pay less for European players. (A) Signup and view all the answers

What percentage of local broadcast teams in the NBA were women during the 2021–2022 season?

20% (C) Signup and view all the answers

What significant event took place in July 2021 related to women's contributions in broadcasting?

First all-female broadcast crew in a game aired on ESPN (D) Signup and view all the answers

What is referred to as positional discrimination in sports?

The tendency for one race to dominate certain player positions (A) Signup and view all the answers

What finding did Berri and Simmons report regarding black quarterbacks in the NFL?

They are paid less than equally productive white quarterbacks (D) Signup and view all the answers

What does the research by Price and Wolfers indicate about the fouls assessed to black players?

They are assessed significantly more fouls when referees are white (A) Signup and view all the answers

In the NFL, what percentage of quarterbacks were reported as white in 2014?

81% (C) Signup and view all the answers

How much less are foreign players in the NBA paid compared to otherwise identical U.S. natives, according to Yang and Yu?

17.4% (B) Signup and view all the answers

What trend is observed regarding the race of players in offensive versus defensive positions in the NFL?

White players are more likely to be found on offense than on defense (B) Signup and view all the answers

What did the USWNT sue the US Soccer Federation for in March 2019?

Violation of the Civil Rights Act (A) Signup and view all the answers

What was the outcome of the suit settled in February 2022 between the USWNT and US Soccer?

A $24 million settlement (B) Signup and view all the answers

What significant agreement did US Soccer reach in May 2022?

50-50 revenue split and equal pay (C) Signup and view all the answers

What was the revenue difference generated by the 2023 Women’s World Cup compared to the 2022 men’s tournament?

$570 million to $6.3 billion (C) Signup and view all the answers

How did Billie Jean King contribute to gender equity in tennis in 1973?

By threatening a boycott for equal prize money (D) Signup and view all the answers

When did Wimbledon finally award equal prize money to men and women?

2007 (D) Signup and view all the answers

Which factor do some argue justifies higher pay for male tennis players?

Longer match durations (C) Signup and view all the answers

What challenge is mentioned regarding the validity of gender discrimination claims in sports?

Equal tournament conditions (D) Signup and view all the answers

What impact did the 'gentlemen's agreement' have on the supply of players in Major League Baseball (MLB)?

The 'gentlemen's agreement' increased the supply of white players, as black players were not allowed to play. (D) Signup and view all the answers

Given a large pool of available players and assuming player productivity is the same, what is the predicted outcome of discrimination against black players in Major League Baseball (MLB) in a perfectly competitive market?

Discriminatory employers will be driven out of the market by non-discriminatory employers, leading to a uniform wage for all players, regardless of race. (D) Signup and view all the answers

Why does the text suggest that professional sports markets are not perfectly competitive, despite the powerful motivation for owners to win games and championships?

The text highlights the presence of external factors that influence professional sports markets, such as league regulations and fan preferences, which can impact the ability of owners to overcome their prejudices. (A) Signup and view all the answers

What is a significant weakness of Becker's theory of discrimination?

Becker's theory relies on the assumption of perfectly competitive markets, which may not always hold true, limiting its applicability to real-world situations. (D) Signup and view all the answers

If a non-discriminatory employer enters the market and pays black workers a higher wage than a discriminatory employer, what is the likely outcome?

The discriminatory employer will be driven out of the market by the non-discriminatory employer, leaving all workers to be paid the same wage, regardless of race. (A) Signup and view all the answers

According to Becker's theory, what is the primary driver for the elimination of discriminatory practices in a perfectly competitive market?

The desire of employers to maximize profits. (C) Signup and view all the answers

Why does the text suggest that owners in professional sports markets might be more likely to overcome their prejudices than employers in other sectors?

Professional sports teams face intense competition and the need to win games, creating strong incentives to hire the best players regardless of race. (C) Signup and view all the answers

What is the most likely outcome for discriminatory employers in a competitive market who continue to pay higher wages to white workers?

They will likely be driven out of the market by non-discriminatory employers who can hire and pay workers at lower costs. (A) Signup and view all the answers

Study Notes

Economics of Sports Discrimination

The economics of discrimination in sports examines the presence and absence of discrimination in professional sports, the economic theory of discrimination, different forms of discrimination and their effects on employment and compensation, and the differences between gender and racial discrimination.

Why Study Discrimination in Sports?

Sports reflects societal attitudes toward discrimination.
Sports data provides insights into societal inequalities.
Income data for different ethnic groups in the U.S. demonstrates disparities in education and earnings.

Discrimination Through the Lens of Economics

Unequal access to sports opportunities reflects broader societal inequalities.
Unequal pay for equal work highlights disparities in compensation.
"Inclusion" and "Equity" are central concerns.
Examples of discrimination in sports, including foreign versus domestic hockey and soccer players.

An Economic Theory of Discrimination

Economic approaches to discrimination differ from other disciplines.
Economists emphasize outcomes over origins.
Discrimination can be distinguished from prejudice, with an action aspect differentiating them.
Becker's theory of taste for discrimination.
Becker's theory posits that individuals may prefer to associate with particular groups.
This “taste” for discrimination can influence wage differentials.
Employer discrimination, an example from the NHL.

How to Measure Discrimination

Discrimination coefficient (d): measures the additional amount a person is willing to pay to associate with a preferred group.
If an employer is willing to pay a certain amount for a non-preferred employee, the same employer may be willing to pay more for a preferred employee.
These wages reflect a taste for discrimination.

Employer Discrimination: Statistical Discrimination

To this point, differences have been assumed to not be present.
Even with differences in offensive or defensive skills, differences based on group averages can mask individual variation.
This type of discrimination leads to potentially inaccurate judgements about skill level.

Does Anyone Win With Employer Discrimination?

A model of the benefits of employer discrimination is provided by examining the case of racial discrimination in major league baseball.
The example demonstrates how a less-discriminatory employer may be more successful due to broader labor pool.

How Competition Can Eliminate Discrimination

Becker's theory implies that less-discriminatory employers are more successful.
An example provided in the text demonstrates how competitive behavior may outcompete discriminatory organizations.
This highlights the fact that open and competitive markets can drive away prejudiced entities.

When Markets Are Not Competitive

The penalty for discriminating in non-competitive markets is reduced.
Monopolistic or monopsonistic market conditions encourage discrimination to persist over time.
Examples of this were cited in the NHL.

Employee Discrimination

Employees may have tastes for discrimination, affecting market wages.
History illustrates this case, looking at black players' experience in major league baseball (1888-1947).
Historical behavior of a white baseball player was given as an example.

Consumer Discrimination

Consumer preferences can lead to discrimination in sports.
A brief summary of historical consumer behavior.
Market forces do not always eliminate consumer tastes.

Meaningful Progress: Women in Broadcasting

Historical and current representations of women in broadcasting.
Current trends show greater inclusion of women in broadcast teams.

Role Discrimination

Economists call the systematic steering or assignment of minorities to specific roles 'role discrimination,' or 'stacking.'
Examples of this described in the text include teams potentially preferring to have white players on offense and black players on defense.

Discrimination by Officials

Officials' biases can affect athletes' playing experiences and performances.
Analyses and examples described how officials' biases can affect the success of different groups of athletes.
Economic theory suggests that fairness and equitable treatment may yield better financial returns in professional sports.

Gender Equity in Competitive Sports

Major themes outlined on this topic included past and current claims of gender discrimination.
The history of gender discrimination in international sports and examples.
Current attempts to rectify gender inequities.

Trans, Non-binary, and Intersexed Athletes

The complexities involved in creating fair and equitable systems.
Considerations for ensuring participation opportunities.
Examples of recent and ongoing controversies in this context were provided.

End of Chapter Questions

The chapter concludes with a set of thought-provoking questions for the reader to consider for further reflection on the topic of discrimination.

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Description

This quiz explores the dynamics of discrimination in the NHL, focusing on economic theories, particularly Becker's model. It examines reasons for discrimination against European players and implications for wages among players of different backgrounds. Test your understanding of these critical concepts in sports economics.