Abstract
This paper presents an easily understood example of a labor market that is useful in introducing how wages and rents are determined, using professional baseball as the context. The mechanics of a competitive labor market are outlined and an empirical analysis of the major league baseball (MLB) labor market is described. An example out-of-class exercise investigating how salaries are determined is also presented. Additionally, sample topics are provided for in-class discussion at various levels of undergraduate economic instruction.
Recommended Citation
Depken II, Craig A. and Wilson, Dennis P.
(2004)
"Labor Markets in the Classroom: Marginal Revenue Product in Major League Baseball,"
Journal of Economics and Finance Education: Vol. 3:
Iss.
1, Article 2.
Available at:
https://scholarship.rollins.edu/jefe/vol3/iss1/2
