Full Citation

Title: Technical Change and Superstar Effects: Evidence from the Roll-Out of Television

Citation Type: Miscellaneous

Publication Year: 2020

ISBN:

ISSN: 2042-2695

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Abstract: Technical change that improves economies of scale can generate fast income growth among top earners at the expense of everyone else. I test this classic "superstar model" in the labor market for entertainers where the historic roll-out of television led to a natural experiment in scale-related technological change. The launch of a local TV station multiplied audiences of top entertainers nearly fourfold and resulted in a 50% increase of the top percentile's income share, a more right-skewed income distribution, and significant income losses for lowerranked entertainers. The results confirm the predictions of the "superstar model" and are at odds with canonical models of skill-biased technological change.

Url: http://scholar.google.com/scholar_url?url=https://cep.lse.ac.uk/pubs/download/dp1663.pdf&hl=en&sa=X&d=12832812287560685875&ei=XozOX5KvOY6CywTRt52ACQ&scisig=AAGBfm1iIXNiiT83S7_b0yawu3ZVzqRnVQ&nossl=1&oi=scholaralrt&hist=SD6T3SsAAAAJ:14316194096251125433:AA

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Authors: Koenig, Felix

Publisher: Centre for Economic Performance

Data Collections: IPUMS USA, IPUMS NHGIS

Topics: Other

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