Team and player effects on NHL player salaries: a hierarchical linear model approach

Abstract

This paper employs a hierarchical linear model (HLM) to assess the importance of both player- and team-level attributes in determining National Hockey League (NHL) player salaries. Empirical results show that there are significant differences in mean salaries and rewards to performance across teams and that these differences can be partially explained by differences in team revenues. Implications for research in other industries are considered.