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Creative Destruction and Subjective Well-Being.


ABSTRACT: In this paper we analyze the relationship between turnover-driven growth and subjective wellbeing. Our model of innovation-led growth and unemployment predicts that: (i) the effect of creative destruction on expected individual welfare should be unambiguously positive if we control for unemployment, less so if we do not; (ii) job creation has a positive and job destruction has a negative impact on wellbeing; (iii) job destruction has a less negative impact in US Metropolitan Statistical Areas (MSA) within states with more generous unemployment insurance policies; (iv) job creation has a more positive effect on individuals that are more forward-looking. The empirical analysis using cross-sectional MSA-level and individual-level data provide empirical support to these predictions.

SUBMITTER: Aghion P 

PROVIDER: S-EPMC5510036 | biostudies-literature | 2016 Dec

REPOSITORIES: biostudies-literature

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Creative Destruction and Subjective Well-Being.

Aghion Philippe P   Akcigit Ufuk U   Deaton Angus A   Roulet Alexandra A  

The American economic review 20161201 12


In this paper we analyze the relationship between turnover-driven growth and subjective wellbeing. Our model of innovation-led growth and unemployment predicts that: (<i>i</i>) the effect of creative destruction on expected individual welfare should be unambiguously positive if we control for unemployment, less so if we do not; (<i>ii</i>) job creation has a positive and job destruction has a negative impact on wellbeing; (<i>iii</i>) job destruction has a less negative impact in US Metropolitan  ...[more]

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