Title

Negotiated Settlement under MLB Final-Offer Salary Arbitration System

Document Type

Article

Language

eng

Format of Original

11 p.

Publication Date

4-2014

Publisher

Wiley

Source Publication

Contemporary Economic Policy

Source ISSN

1074-3529

Abstract

This paper provides a detailed analysis of negotiated salaries under Major League Baseball's final-offer arbitration process using data from the 2007–2010 seasons. There is a wage premium of 25% for hitters and 14% for pitchers filing for arbitration. Interestingly, there is an additional premium for exchanging offers for hitters but not for pitchers. The additional premium in salary for hitters who exchange offers with their clubs amounts to 7%.

Comments

Accepted version. This is the peer reviewed version of the following article: Hill, J. R. and Jolly, N. A. “Negotiated settlement under MLB final-offer salary arbitration system”.Contemporary Economic Policy, Vol. 32, No. 2 (April 2014): 533–543. which has been published in final form at here: DOI. This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.