NFL Quarterback Wage Discrimination

Labor econometrics Wage decomposition OLS regression

Problem

Do NFL quarterbacks receive different guaranteed compensation based on race, after accounting for performance and team context? The NFL is one of the most data-rich labor markets around, so it's a good place to test whether pay gaps persist even when productivity is clearly measurable.

Method

I hand-collected a dataset of QBs drafted 2011–2020, merging guaranteed contract values (Spotrac) with QBR, draft position, and team salary cap data. I estimated OLS wage equations with a race indicator alongside controls for performance, draft capital, and cap space, and applied a Ramsey RESET test to verify functional form. Coefficients were interpreted as a Blinder-Oaxaca style decomposition of the conditional wage gap.

Result

The race coefficient was statistically insignificant once performance was controlled for. Guaranteed pay was driven mainly by QBR and available cap space, suggesting teams price quarterbacks based on what they do on the field, not who they are. Full regression tables and robustness checks are in the paper below.

Full paper (PDF)