Creative Destruction and Subjective Well-Being.
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.
['Aghion|Philippe|P|', 'Akcigit|Ufuk|U|', 'Deaton|Angus|A|', 'Roulet|Alexandra|A|']
D000293:Adolescent D000328:Adult D006801:Humans D007182:Income D008875:Middle Aged D008962:Models, Theoretical D010549:Personal Satisfaction D014478:Unemployment D014942:Workers' Compensation D055815:Young Adult
creative destruction growth wellbeing unemployment Cantril ladder turnover