Worker Relocations and Worker Performance: Evidence From the National Basketball Association

ABSTRACT This study uses National Basketball Association (NBA) player data to test for impacts of worker relocations on worker performance. Using mid‐season trades in the NBA as a setting in which workers are relocated with little notice and time for preparation, we estimate difference‐in‐difference fixed‐effects regressions to test whether employer‐driven relocation affects productivity. We construct a longitudinal dataset linking transaction dates to detailed box score outcomes and compare changes in performance for traded players with those who remain on their original teams, prior to and following the NBA's trade deadline. The predicted theoretical impact of employer‐driven relocation is ambiguous. Adjustment costs may lead to short‐term reductions in productivity. However, relocated workers may be motivated to impress their new employers, which could positively impact effort. Overall, our findings on the impacts of being traded on performance are mixed. Consistent with effects stemming from increased adjustment costs, traded players experience a decline in assists. Heterogeneity analysis suggests this effect is driven by players with fewer ball‐handling responsibilities, who rely on teammates to facilitate offensive integration. Consistent with increased effort, traded players experience increases in offensive rebounds, steals, and personal fouls. These patterns reflect temporary adjustments in role execution rather than broad changes in underlying ability. The results suggest that mid‐season trades reshape the expression of performance without producing immediate improvements or deteriorations in overall productivity, underscoring the value of structured integration strategies for teams acquiring new players during the regular season.