Home > Uncategorized > Superstar Phenomenon, Discrimination, Wages and Jeremy Lin

Superstar Phenomenon, Discrimination, Wages and Jeremy Lin

It’s not often so many things in one article will converge with what we’ve just been covering in class, but for students who are paying attention in Microeconomics, check out this article by Harvard’s Professor Economics and Public Policy Kenneth Rogoff:

How the profit motive works against discrimination: Lin’s success is delicious, partly because it contradicts so many cultural prejudices about Asian-American athletes.

How consumer discrimination could possibly lead to employer discrimination: The NBA, which has been trying to build brand recognition and interest in China, is thrilled.

Wage differentials based on ability: If a star basketball player reacts a split-second faster than his competitors, no one has a problem with his earning more for every game than five factory workers do in a year. But if, say, a financial trader or a corporate executive is paid a fortune for being a shade faster than competitors, the public suspects that he or she is undeserving or, worse, a thief.

Superstar phenomenon: As the late University of Chicago economist Sherwin Rosen postulated, globalization and changing communication technologies have increasingly made the economics of superstars important in a variety of fields. That is certainly true in sports and entertainment, but it is also the case in business and finance.

And by the way…Jeremy Lin took Greg Mankiw’s ec10 class when he was a student at Harvard.

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