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Economic growth requires factor reallocation across firms and continuous replacement of technologies. Labor market institutions influence economic dynamism by their impact on the supply of a key factor, skilled workers to new and expanding firms, and the shedding of workers from declining and...
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This essay uses Edmund Phelps’ new book Mass Flourishing: How Grassroots Innovation Created Jobs, Challenge, and Change … (Phelps <CitationRef CitationID="CR67">2013</CitationRef>) as inspiration to discuss innovation and entrepreneurship. The book … niggardly evaluation of European innovation, and the lack of convincing empirical evidence for the claim that the rate of …
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