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April 3, 2026Journal of Sports Economics0 citations

A Rising Tide Raises all Boats: The Changing Distribution of Salaries in the NBA Over Time

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MSMark C. StrazicichJDJohn W. DawsonPGPeter A. Groothuis

Key Points

  • This research aims to analyze how salary distribution among NBA players has changed over time and assess trends in inequality.
  • Structural break analysis to identify distinct salary eras
  • Panel data analysis of all full-time NBA players
  • Evaluation of Lorenz curve and Gini coefficient
  • Real salaries among NBA players have increased significantly across all levels
  • Inequality rose during the 1990s but decreased in the early 2000s
  • Recent years show a return to increasing salary inequality

Abstract

We examine the evolution of salary distribution in the National Basketball Association using a panel of all full-time players. We identify three eras using structural break analysis, with breaks aligned to changes in Collective Bargaining Agreements that occurred at the time of lockouts. Our findings show that real salaries have risen substantially across all income levels but not at the same rate. Analyzing the Lorenz curve and Gini coefficient, we observe a period of increasing inequality during the 1990s, followed by a more equitable salary distribution in the early 2000s, and then a return to rising inequality in recent years.

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Cite This Study

Strazicich et al. (2026) studied this question.

synapsesocial.com/papers/69cf5e2e5a333a821460c4d4https://doi.org/10.1177/15270025261436349
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