Question

Answer the thematic question below to demonstrate your understanding of factor market structures.The table below shows starting salaries by sports in the USA. Explain what the likely cause(s) of the observed differences in pay for men and women : Unions, discrimination, or immigration? Use your economics.

Year	Soccer, Women	Soccer, Man	NBA	NFL	MLB	NHL
2011	0.00	32,600	442,114	375,000	414,000	500,00
2012	0.00	33,750	452,588	390,000	480,000	525,000
2013	6,000	35,125	473,604	405,000	490,000	525,000
2014	6,842	36,500	490,180	420,00	500,000	500,000
2015	6,842	50,000	507,336	435,000	507,500	550,000
2016	7,200	51,500	525,093	450,000	507,500	575,000
2017	15,000	53,000	543,471	465,000	535,000	575,000
2018	15,750	54,500	562,493	480,000	545,00	650,000
2019	16,538	56,250	582,180	495,000	555,000	650,000

Minimum Starting Salary for Different Sports in the USA, 2011-2019

Answer 1

As can be seen from the chart that women are paid way lower than men for the same sport such as soccer. Although the rates have increased over the years, so have they for the men.

Year	Soccer, Women		Soccer, Man
2011	0		32,600
2012	0		33,750	4%
2013	6,000		35,125	4%
2014	6,842	14% {(6842/6000)-1}*100	36,500	4%
2015	6,842	0%	50,000	37%
2016	7,200	5%	51,500	3%
2017	15,000	108%	53,000	3%
2018	15,750	5%	54,500	3%
2019	16,538	5%	56,250	3%

Even though the year on year increase has been higher for women, the rate is still lower.

There is discrimination as the market for women in sports is till emerging, and there is less market power for such teams as less number of people know about the teams and follow them. There is less sponsorship as there is less visibility. There is more demand for men, which leads to more salaries for them and prevalence of several leagues to take in more men. On the other hand there are less women leagues and the demand is low which increases the salary gap.