The impact of cultural distance on salary: the case of Samurai Japan

Jane, Wen‐Jhan

doi:10.1007/s40822-020-00157-y

Cited by 2 publications

(6 citation statements)

References 39 publications

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“…Many previous studies have demonstrated the race-related or nationality-related salary discrimination in professional sports [ 1 – 3 , 13 , 16 , 22 ], and their estimation results are compared with each other in Table A in S1 Appendix . Regarding the CD-related salary estimation in professional sports, Jane analyzed the salaries of Japan’s professional baseball players, finding that the salary premium of players from Holland with the largest CD (6.44) is 10.45% higher than that of players from Italy with the smallest CD (0.94) [ 5 ].…”

Section: Analysis Of Empirical Resultsmentioning

confidence: 99%

“…Cultural indicators provide a new perspective for the studies of salary discrimination in professional sports. Based on related player data (e.g., salaries, nationality, personal characteristics, and performance) and using the salary equation of Mincer and methodology of Jane, we constructed a model to examine the impact of nationality and CD on player salaries [ 5 , 33 ].…”

Section: Study Methodology and Data Descriptionmentioning

confidence: 99%

“…Because the data type is panel data, fixed-effect (FE) and RE models are used based on the regression model of Jane [ 5 ]. A houseman test must be conducted first before a FE or RE model is selected.…”

Section: Study Methodology and Data Descriptionmentioning

confidence: 99%

“…NPB employers cannot acquire sufficient information about foreign players, and thus end up granting salary premiums to them. Compared to Japanese players, foreign batters averagely enjoy a 0.93% to 0.95% salary premium and foreign pitchers averagely enjoy a 0.74% to 0.76% salary premium, proving the prevalence of a special tenure system in the Japanese labor market [ 5 ].…”

Section: Literature Reviewmentioning

confidence: 99%

“…Regarding the impact of CD on salaries, Jane analyzed the data of Japan’s professional baseball, finding that CD is positively correlated with salaries; specifically, the average salary of foreign players is 0.74% to 0.95% higher than that of Japan players [ 5 ]. In addition, studies showed that employee salaries are not only measured in terms of objective performance, but are also affected by subjective performance evaluations; for example, 34% of employees in the UK’s industrial sector earn a salary depending on the subjective judgments of their supervisors or managers on individual performance [ 6 , 7 ]; employees can not only receive a bonus, but also maintain the recruitment relationship if the subjective performance evaluation is high.…”

Section: Introductionmentioning

confidence: 99%

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The impact of national culture, altruism, and risk preference on salaries: The case of the Major League Baseball

Jane

Wang

2023

PLoS ONE

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Based on the longitudinal data of 30 Major League Baseball (MLB) teams over seasons from 2017 to 2020, we used random effect (RE) models to conduct regression analyses on the detailed data of pitchers and fielders. Cultural distance (CD) was measured in terms of Hofstede’s cultural indicators and Global Preference Survey (GPS) data. The results showed that salary premiums for foreign MLB players existed and CD was significantly positively correlated with salaries. Further, the risk preference (/altruism) difference between foreign pitchers and American pitchers was significantly positively (/negatively) correlated with the salaries of foreign pitchers. Salary estimation data showed that the salary premium was nearly 20% for players from South Korea and Panama, the lowest (only 0.11%) for players from Australia, and only 6.13% for players from Dominican Republic (accounting for the largest proportion of foreign MLB players), indicating that the MLB’s foreign player recruitment policy is correct.

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