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Abstract
This paper empirically identifies the spillover effects of superstars on peers. Using detailed performance data from a high-stakes labor market environment – professional soccer in China – we find that the arrival of foreign superstars crowds out the performances of local peers. When the stars are absent from matches due to personal injuries, however, peer performances increase steadily with superstar exposure time, implying positive dynamic spillover effects. Spillovers concentrate on peers’ skills that complement the stars’. Stars with higher market values exert greater spillovers on peers, while non-stars generate no spillovers.