Friday, February 28, 2014

MLB Salary Inequality

With the start of MLB Spring Training underway, I wanted to turn my attention to analyzing baseball over the next few blogs.  For the first, I decided to look at MLB player salary inequality as measure by the Gini coefficient.  So I downloaded Sean Lahman's MLB database and after unzipping the files I used his Salary spreadsheet to calculate the Gini Coefficient for the data that he has from 1985 to 2013.  Here are the results since the 1985 season along with the number of players per season.

Season Gini n
1985 0.3843 550
1986 0.4888 738
1987 0.5104 627
1988 0.5073 663
1989 0.5328 711
1990 0.5332 867
1991 0.5432 685
1992 0.5728 769
1993 0.6257 923
1994 0.6221 884
1995 0.6787 986
1996 0.6623 931
1997 0.6402 925
1998 0.6353 998
1999 0.6290 1006
2000 0.6066 836
2001 0.6092 860
2002 0.6123 846
2003 0.6251 827
2004 0.6335 831
2005 0.6241 831
2006 0.6189 819
2007 0.6099 842
2008 0.6240 856
2009 0.6185 813
2010 0.6225 830
2011 0.6215 839
2012 0.6196 848
2013 0.6168 815

As you can see since the early to mid-90's MLB player salary inequality has remained fairly stable and fairly unequal - similar to South Africa in 2009, but less equal than the US income distribution, which was 0.477 in 2011.

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