Sunday, December 29, 2013

NCAA FBS Head Coaches Salary Inequality

Last year I looked at NCAA bowl game payout inequality and this year I thought that I would turn my attention to NCAA FBS head coaches salary inequality.  One way that economists measure inequality is by using a Gini coefficient, and here is a step-by-step method of performing this calculation using Microsoft Excel which I gave to my freshmen college football seminar this year.  So using USA Today's NCAA FBS head coach salary database for the 2011 calendar year (excluding private schools and Temple and Pitt), I calculate the Gini coefficient for NCAA head football coaches to be equal to 0.407.  A Gini coefficient equal to zero is perfect equality and a Gini coefficient equal to one is perfect inequality.

NCAA head football coaches school pay is more equal than the US income distribution, which was 0.477 in 2011.

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