Evaluation of the Choice between Schooling and On-The-Job Training for MLB Prospects

Dawida, Joseph

Evaluation of the Choice between Schooling and On-The-Job Training for MLB Prospects

Persistent URL

http://hdl.handle.net/10456/37773

Author(s)

Dawida, Joseph

Date Issued

April 1, 2015

Abstract

Every year a select few high school baseball players are drafted by a Major League Baseball organization. They are then faced with the decision of either choosing to go to college, or forgo college and sign a contract with the organization which drafted them. The purpose of this research is to analyze all of the necessary factors that go into this decision in order to determine if a player should sign a professional contract or go to college. Looking at human capital, on-the-job training, risk assessment, and general statistics, this research aims to decide when a player should choose what to do based on expected lifetime earnings of both decisions. This research paper hypothesizes that the signing bonus offered to players who are drafted will ultimately dictate which decision they should make.

Major

Economics

First Reader(s)

Martin, Stephanie M.