Labor Markets in the Classroom: Marginal Revenue Product in Major League Baseball
نویسندگان
چکیده
This paper presents an easily understood example of a labor market that is useful in introducing how wages and rents are determined, using professional baseball as the context. The mechanics of a competitive labor market are outlined and an empirical analysis of the major league baseball (MLB) labor market is described. An example out-of-class exercise investigating whether baseball player salaries are “justified” is also presented. Additionally, sample topics are provided for inclass discussion at various levels of undergraduate economic instruction.
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