Working Paper: NBER ID: w21069
Authors: Philippe Aghion; Ufuk Akcigit; Angus Deaton; Alexandra Roulet
Abstract: In this paper we analyze the relationship between turnover-driven growth and subjective wellbeing, using cross-sectional MSA level US data. We find that the effect of creative destruction on wellbeing is (i) unambiguously positive if we control for MSA-level unemployment, less so if we do not; (ii) more positive on future wellbeing than on current well-being; (iii) more positive in MSAs with faster growing industries or with industries that are less prone to outsourcing; (iv) more positive in MSAs within states with more generous unemployment insurance policies.
Keywords: Creative destruction; Subjective wellbeing; Economic growth; Job turnover; Unemployment insurance
JEL Codes: I31; J63; J65; O33; O38; Z19
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Creative destruction (O39) | Subjective wellbeing (I31) |
| Job turnover (J63) | Subjective wellbeing (I31) |
| Unemployment (J64) | Subjective wellbeing (I31) |
| Creative destruction (O39) | Anticipated wellbeing (I31) |
| Creative destruction (O39) | Current wellbeing (I31) |
| Creative destruction (O39) | Subjective wellbeing in faster-growing industries (I31) |
| Creative destruction (O39) | Subjective wellbeing in states with generous unemployment insurance (J65) |