While it is largely uncontroversial that human capital can be considered as one of the shaping factors of economic growth, no agreement exists on the specific role of human capital formation. Competing theories all stressing different aspects of human capital formation are not in short supply,...

This paper analyzes the relationship between endogenous growth and unemployment. It provides knowledge diffusion as the link between innovation-based growth through creative destruction and the labor market outcome. Three dimensions of knowledge are considered: human capital (general skills),...