The growing recognition of the extent to which institutions determine economic outcomes has been one of the key developments in economic research and policy analysis in the last two decades. At the same time, the entrepreneur has made a comeback, resurrected as one of the prime value creators in...

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...