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

Felix Nikolaus Konig
Authors registered in the RePEc Author Service: Felix Koenig

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

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 lower ranked entertainers. The results confirm the predictions of the “superstar model” and are at odds with canonical models of skill-biased technological change.

Keywords: superstar effect; inequality; top incomes; technical change (search for similar items in EconPapers)
JEL-codes: D31 J23 J31 O33 (search for similar items in EconPapers)
Pages: 63 pages
Date: 2019-11-15
New Economics Papers: this item is included in nep-cul and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://eprints.lse.ac.uk/103450/ Open access version. (application/pdf)

Related works:
Journal Article: Technical Change and Superstar Effects: Evidence from the Rollout of Television (2023)
Working Paper: Technical Change and Superstar Effects: Evidence from the Rollout of Television (2021)
Working Paper: Technical change and superstar effects: evidence from the roll-out of television (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:103450

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