The Economic Impact of Minor League Baseball

Open Access
Levin, Harrison Albert
Area of Honors:
Bachelor of Science
Document Type:
Thesis Supervisors:
  • Edward Coulson, Thesis Supervisor
  • Russell Paul Chuderewicz, Honors Advisor
  • economics
  • sports economics
  • minor league baseball
  • local economies
  • compensating differentials
  • unemployment rate
This paper uses a data set to determine whether or not there are positive economic benefits from government subsidies on stadium construction for Minor League Baseball teams. Specifically, I used a data set consisting of 100 Metropolitan Statistical Areas in the United States from the years 2000-2012 to determine if markets that hosted a team had lower unemployment rates than Metropolitan Statistical areas that did not host a team. Overall, markets that had a Minor League Baseball team also had a statistically significant lower unemployment rates, however on an individual basis, AAA teams were correlated with higher unemployment rates while both AA and A teams were correlated with lower rates.