Creative destruction and subjective well-being

Philippe Aghion, Ufuk Akcigit, Angus Deaton and Alexandra Roulet

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: In this paper we analyze the relationship between turnover-driven growth and subjective well-being. 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 well-being; (iii) job destruction has a less negative impact in areas with more generous unemployment insurance policies; and (iv) job creation has a more positive effect on individuals that are more forward-looking. The empirical analysis using cross sectional MSA (metropolitan statistical area)-level and individual-level data provide empirical support to these predictions.

JEL-codes: I31 J63 J65 O33 O38 (search for similar items in EconPapers)
Date: 2016-12-01
New Economics Papers: this item is included in nep-hap, nep-ino and nep-ltv
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Citations: View citations in EconPapers (51)

Published in American Economic Review, 1, December, 2016, 106(12), pp. 3869-3897. ISSN: 0002-8282

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http://eprints.lse.ac.uk/69228/ Open access version. (application/pdf)

Related works:
Journal Article: Creative Destruction and Subjective Well-Being (2016)
Working Paper: Creative Destruction and Subjective Well-Being (2016)
Working Paper: Creative Destruction and Subjective Well-Being (2016)
Working Paper: Creative Destruction and Subjective Wellbeing (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:69228

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