This is “Earring Magic Ken” who was introduced in 1992, and discontinued shortly thereafter.
Here's a brief history on how Earring Magic Ken came to be. Mattel had done a survey and discovered that girls didn’t think ken was “cool” enough.
SO someone had the bright idea to research "coolness" by sending people to raves which, at the time, were mostly hosted and attended by gay men. So they went to these raves and took notes on what the fashions were and finally landed on this outfit, mesh shirt and all.
This doll became the best selling Ken doll in history, mostly because gay men bought it in droves. Magic Earring Ken was on the shelves for six weeks before they pulled him. (Many say his necklace was supposed to be a "sex-toy") Mattel and a number of parents were not very amused and discontinued the doll. In that short amount of time, Magic Earring Ken became the BEST SELLING Barbie Doll Mattel has EVER SOLD. LET THAT SINK IN. SIX WEEKS. The best selling Ken doll in History and they discontinued him only because he looked gay.
And now every time those old windbag execs who pulled him look at their sales board, they’ll be forever haunted by Magic Earring Ken posing loud and proud at the top of their charts.