Document Type
Working Paper
Publication Date
2017
College/Unit
Chambers College of Business and Economics
Document Number
17-11
Department/Program/Center
Economics
Abstract
This paper investigates the impact of taxes on the salaries received by National Basketball Association free agents from 2010-2014. High state income tax rates affect the after-tax income received by players from their team as well as on any ancillary income. Using data on 576 free agents, we find statistically significant evidence that free agents signing in high tax states receive higher salaries, ceteris paribus. Our results suggest that a one-unit increase in the average tax rate experienced by a free agent in a state leads to free agent salaries being over $60,000 higher.
Digital Commons Citation
Johnson, Candon and Hall, Joshua, "Do National Basketball Association Players Need Higher Salaries to Play in High Tax States? Evidence from Free Agents" (2017). Economics Faculty Working Papers Series. 226.
https://researchrepository.wvu.edu/econ_working-papers/226