Aghion, PhilippeAkcigit, UfukDeaton, AngusRoulet, Alexandra2019-10-172016Aghion, Philippe, Ufuk Akcigit, Angus Deaton, and Alexandra Roulet. 2016. “Creative Destruction and Subjective Well-Being.” American Economic Review 106 (12): 3869–97. https://doi.org/10.1257/aer.20150338.0002-82821944-7981http://nrs.harvard.edu/urn-3:HUL.InstRepos:41555804In 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.en-USJournal Article2019-10-1710.1257/aer.20150338