The Effect of Information Regarding Defensive Performance in Major League Baseball on Wage Structure: An Empirical Analysis

April 6th, 2011

In recent years, economists have used the Major League Baseball labor market to study various concepts in labor market economics, such as rates of monopsonistic exploitation, labor market efficiency, and shirking tendencies of employees signed to long-term contracts.  With its wealth of readily available information regarding wages and performance, this market can provide for us a view of how employees are compensated for performance. In the past decade, there has been a major evolution in our understanding of the value of defensive performance in Major League Baseball.  Advanced defensive metrics, such as Mitchell Litchtman’s Ultimate Zone Rating, attempt to determine a fielder’s value in terms of runs saved relative to a league average fielder.  In this research project, I will consider the labor market effects of this new information regarding defensive performance on wage structure in Major League Baseball.

Brad Shrago, ’11
Middleton, WI
Majors: Economics and Business, Mathematics and Statistics

Sponsor: Todd Knoop and Jerry Savitsky

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