Tuesday, November 17, 2015

NBA Salary Income Inequality since 2005

Now that the NBA season is well underway, I thought I would look at how equal (or unequal) NBA salaries are over the last few years.  To do that I collected the NBA salary data from ESPN and calculated the Gini coefficient for the league as a whole.  Results are listed in the table below by season, the number of players (n), the Gini coefficient and the total salary for all players in the league.

Season n
Gini
Total
2005-2006 394
0.4917
$1,619,154,926
2006-2007 409
0.5006
$1,697,883,876
2007-2008 415
0.5161
$1,817,073,513
2008-2009 413
0.5053
$2,002,564,767
2009-2010 428
0.5260
$1,972,670,023
2010-2011 450
0.5366
$1,964,987,905
2011-2012 501
0.5500
$2,013,125,239
2012-2013 541
0.5601
$2,062,073,682
2013-2014 391
0.5409
$1,786,979,523
2014-2015 431
0.5294
$1,903,052,600
2015-2016 407
0.5017
$2,126,853,179

As you can see the NBA has been fairly unequal in the distribution of salary among its members, but over the last few years, salary inequality has been decreasing in part reflecting the increase in average salary over the last few years.  For comparison purposes, the US Gini coefficient for 2014 is 0.480.  Below is a chart of the Gini coefficient in the NBA since the 2005-2006 season.