Creative Destruction and Subjective Well-Being

March 2015
with Philippe Aghion, Ufuk Ackcigit, and Alexandra Roulet; Working Paper

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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 well-being is (i) unambiguously positive if we control for MSA-level unemployment, less so if we do not; (ii) more positive on future well-being than on current well-being; (iii) more positive effect on well-being in MSAs with faster growing industries or with industries that are less prone to outsourcing; (iv) more positive effect in MSAs within states with more generous unemployment insurance policies.