The rise of TV shows how technological change can lead to superstar wages for some and low wages for most others

New technologies can open markets and amplify differences in talent to produce big differences in incomes. In new research, Felix Koenig looks at the effect of the introduction of television on entertainers' wages. He finds that in communities where television first launched, especially those with greater competition for talent, entertainers' salaries became much more unequally distributed. A small number of top earners benefited greatly, while demand declined for most workers.