MIGRATION TRENDS AND EARNINGS OF FREE AGENTS IN MAJOR LEAGUE BASEBALL, 1976–1979

This paper is an empirical investigation of the effect of team characteristics on the migration pattern of free agents in Major League Baseball during the period 1976–1979. The results indicate that high-quality free agents tend to leave winning teams and move to teams in cities with large or rapidly growing populations. The compensation paid to free agents is shown to depend on these team characteristics as well as the players' personal characteristics and market conditions.