Food for thought! "Industrial policy in times of market power" by Domenico Delli Gatti, Roberta Terranova, and Enrico Maria Turco. "We explore the effects of different industrial policies in a macroeconomic agent-based model calibrated to reproduce the decline in US business dynamism over the last half-century. R&D subsidies to innovators raise GDP growth but exacerbate the trend toward rising market power, while financial subsidies to adopters and standard capital-replacement schemes have negligible aggregate effects. A meaningful reversal of market power emerges only when innovation support is paired with adoption-oriented measures that relax the knowledge constraints of small adopters, e.g. the establishment of a National Competence Center providing technology transfer and knowledge upgrading. The effectiveness of each policy is dependent on the underlying technological regime: the growth–dynamism trade-off is sharpest in science-based regimes and attenuated in scale-intensive and supplier-dominated ones." sciencedirect.com/science/ar…

Very valuable! "The Economics of Imperfect Labor Markets" by Tito Boeri and Jan van Ours. link.amazon/B0fqyzmKg "The leading textbook on imperfect labor markets and the institutions that affect them: Today's labor markets are witnessing seismic changes brought on by such factors as rising self-employment, temporary employment, zero-hour contracts, and the growth of the sharing economy. This fully updated and revised third edition of The Economics of Imperfect Labor Markets reflects these and other critical changes in imperfect labor markets, and it has been significantly expanded to discuss topics such as workplace safety, regulations on self-employment, and disability and absence from work. Authoritative and accessible, this textbook examines the many institutions that affect the behavior of workers and employers in imperfect labor markets. These include minimum wages, employment protection legislation, unemployment benefits, family policies, equal opportunity legislation, collective bargaining, early retirement programs, and education and migration policies. Written for advanced undergraduates and beginning graduate students, the book carefully defines and measures these institutions to accurately characterize their effects, and discusses how these institutions are being transformed today." Olivier Blanchard: "Understanding the role of labor market institutions is a difficult but central task. Good institutions can alleviate the adverse effects of the many imperfections that characterize labor markets. But unfortunately bad institutions can, and often do, make things worse. By relying on simple theory and an accumulating body of careful evidence, this book helps us think straight. An essential read for anybody interested in going beyond clichés and understanding what institutions do and should do." link.amazon/B0fqyzmKg

Super interesting! "Winners and Losers: Competition, Creative Destruction, and Labor Income Risk" by Brice Green, Leonid Kogan, Dimitris Papanikolaou, and Lawrence D. W. Schmidt. "Using U.S. administrative data, we find that technology-driven creative destruction in the product market passes through to worker earnings. The passthrough to incumbent worker earnings is both asymmetric and concentrated: profit drops from rival innovations lead to proportionally greater earnings declines and changes in the likelihood of job destruction than profit gains from their own firm’s innovations, while top workers are significantly more exposed than the average worker. We develop an endogenous-growth model with monopsonistic labor markets and worker heterogeneity that replicates this asymmetry and the distribution of earnings risk. In the model, creative destruction exposes highincome workers to concentrated downside risk while increasing upward mobility for lower-income workers, shaping the welfare consequences of innovation policy." conference.nber.org/conf_pap…