Manufacturing generates very little employment in the developing world. Urban jobs are predominantly informal … for four broad strategies: (a) incentivizing large, productive firms to expand their employment; (b) enhancing productive …

Is financial innovation necessary for sustaining economic growth? To address this question, we build a Schumpeterian … innovation: they can invent better methods for screening entrepreneurs. Second, every screening process becomes less effective as … technology advances. The model predicts that technological innovation and economic growth eventually stop unless financiers …