Does Payroll in the MLB Affect Team Performance?

Spencer Horridge, Georgia College and State University

Abstract

Basebal is a multi billion dollar industry with some teams have payrolls over $200 million. Many teams have these large payrolls but are they really paying for wins? In this paper I use team payroll along with other team specific statistics to determine if payroll is really the driving force behind teams winning games.

Session Name:

Issues in Labor Economics

Start Date

10-4-2015 1:15 PM

End Date

10-4-2015 2:15 PM

Location

HSB 304

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Apr 10th, 1:15 PM Apr 10th, 2:15 PM

Does Payroll in the MLB Affect Team Performance?

HSB 304

Basebal is a multi billion dollar industry with some teams have payrolls over $200 million. Many teams have these large payrolls but are they really paying for wins? In this paper I use team payroll along with other team specific statistics to determine if payroll is really the driving force behind teams winning games.