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Thus, SAL is positively impacted by assists, time on the ice, and years of experience in the NHL. Four other variables exhibit positive signs and are statistically significant at the five percent level.
The student can refer to Table 2 to observe how the identified forms of NHL player productivity and team revenues concretely influenced the salaries paid to NHL players according to position during the 2006-2007 regular playing season.
In the case of NHL wingmen, Table 2 reveals the productivity and team revenue measures that helped to determine the salary that each one of them was paid by NHL team owners during the regular 2006-2007 playing season.
In particular, the results found in Table 2 strongly imply that an NHL goalie received a higher 2006-2007 regular season salary for accumulating more playing time on the ice during the 2005-2006 season, for having more years of NHL experience prior to the 2006-2007 regular season, for having a higher number of saves with which he was credited during the 2005-2006 regular season, for having a greater percentage of shots turned into saves during the 2005-2006 season, and for being on a team with higher home attendance numbers.
From Table 2, the student can readily observe that during the 2006-2007 regular season, NHL defense-men were being paid higher salaries for being credited with more assists during the 2005-2006 regular season, for accumulating more time on the ice during the 2005-2006 season, for bringing more years of NHL experience with them as the 2006-2007 regular season began, for scoring more goals during the 2005-2006 season, and for accumulating more penalty minutes during that season.
The examples provided in this educational note involving NHL salaries constitute a potentially engaging and informative manner in which to demonstrate in concrete, quantifiable terms the fact that the free market does in fact tend to work in the very fashion that classroom lectures suggest.
For example, both of these positions receive rather similar rewards for NHL experience, but goalies appear to receive a higher premium for time on the ice.
In any case, it appears that the NHL clearly provides a good example of salaries being approximations of marginal revenue product in our private enterprise system.
"Team Effects on Compensation: An Application to Salary Determination in the NHL." Economic Inquiry, 38 (2): 345-57.