Ethnicity, productivity and salary: player compensation and discrimination in the National Hockey League

The paper considers the impact of potential minority (Francophone, American, European) ethnic (language, culture) discrimination on salary determination in the National Hockey League. Using player salary data for the 1989/90 season, a regression model of salary determination is constructed which includes variables measuring productivity (skills), market structure, and allows for several ethnic influences including minority discrimination, ethnically shaped consumer preferences and reservation wages. The basic conclusion is that wages are principally determined by productivity and market structure, and the only evidence of discrimination is found in the ethnically influenced consumer preference of American, as opposed to Canadian, teams.