Dynamic Superstar Effects
35 Pages Posted: 17 May 2019
Date Written: April 19, 2019
This paper investigates the dynamic effects of high-skill individuals on peers by examining the superstar spillovers in the Chinese Super League. Exploiting timing variations in the arrivals of foreign superstars across clubs and the stars' accidental injuries during the 2013 to 2016 seasons, we find that the exposure to foreign superstars improves domestic peers' skill increasingly as time elapses. The exposure effect is driven by peers at positions close to the superstars and is more pronounced for younger and less-experienced players. Our findings shed light on the positive spillovers of upper-tail human capital on peers' skill accumulation in the long run.
Keywords: superstars, spillover, dynamic effects, skill accumulation
JEL Classification: D23, L29, M59, J24, O15
Suggested Citation: Suggested Citation