Skidmore College Creative Matter Economics Student Theses and Capstone Projects Economics 2017 Salary Dispersion and Team Performance in the National Basketball Association Robert Pierce Skidmore College Follow this and additional works at: https://creativematter.skidmore.edu/econ_studt_schol Part of the Other Economics Commons Recommended Citation Pierce, Robert, "Salary Dispersion and Team Performance in the National Basketball Association" (2017). Economics Student Theses and Capstone Projects. 51. https://creativematter.skidmore.edu/econ_studt_schol/51 This Thesis is brought to you for free and open access by the Economics at Creative Matter. It has been accepted for inclusion in Economics Student Theses and Capstone Projects by an authorized administrator of Creative Matter. For more information, please contact
[email protected]. Salary Dispersion and Team Performance in the National Basketball Association By Robert Pierce A Thesis Submitted to Department of Economics Skidmore College In Partial Fulfillment of the Requirement for the B.A Degree Thesis Advisor: Monica Das Name: Robert Pierce Signature: Robert Pierce Abstract This paper explores the relationship between salary dispersion in the National Basketball Association (NBA) and team performance. Team performance will be measured by regular season win totals as well as playoff performance. I hypothesize that teams with higher salary dispersion typically perform better because of superstars in the NBA. Superstars are more effective in basketball than in any other sport because of rules inherent to the game. They also create high salary dispersions on their respective teams, and being superstars, they contribute largely to team success. This study will encompass all 30 NBA teams over the past 20 NBA seasons, 1995-96 to 2015-16.