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Technical change and superstar effects: evidence from the roll-out of television

König, Felix (2019) Technical change and superstar effects: evidence from the roll-out of television. CEP Discussion Papers. Centre for Economic Performance, LSE, London, UK.

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Abstract

"Superstar effects" generate large compensation differentials among similarly talented individuals. Are superstar effects amplified by technological innovations that extend the scale over which talent is deployed? I test this idea in the market for entertainers, using the roll-out of television as a natural experiment which provides clean variation in a scale-related technological change. The launch of a local TV station increases top entertainers' incomes, resulting in a twofold increase in top-percentile income share, while reducing employment and incomes of lower-level talents. These results show clear evidence of superstar effects and are inconsistent with canonical models of skill-biased technological change.

Item Type: Monograph (Discussion Paper)
Official URL: http://cep.lse.ac.uk/_new/publications/series.asp?...
Additional Information: © 2019 The Authors
Divisions: LSE
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor
P Language and Literature > PN Literature (General) > PN1990 Broadcasting
JEL classification: J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc.
J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J23 - Employment Determination; Job Creation; Demand for Labor; Self-Employment
O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O33 - Technological Change: Choices and Consequences; Diffusion Processes
D - Microeconomics > D3 - Distribution > D31 - Personal Income, Wealth, and Their Distributions
Date Deposited: 17 Feb 2020 12:42
Last Modified: 12 Sep 2020 23:16
URI: http://eprints.lse.ac.uk/id/eprint/103450

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