Super Star firms, which have captured a large share of their market, explain much of declining share of wages going to labor. They are able to produce higher levels of revenues and profits with a smaller number of workers. They pay their workers well but there are fewer of them to pay. Firms like google, Facebook, Amazon etc. are able to grow revenues and profits at faster rate than they grow their labor forces. More ordinary firms have to increase their workforce in order to increase their output and profits.
That trend also applies to individual super stars whose value increases in relation to the level of media coverage which amplifies their exposure. Greater exposure equals greater star power.
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