Does Economic Insecurity Affect Employee Innovation

  title={Does Economic Insecurity Affect Employee Innovation},
  author={Shai Bernstein and Timothy J McQuade and Richard R. Townsend},
Do household wealth shocks affect employee productivity? We examine this question through the lens of technological innovation, by comparing employees that worked at the same firm and lived in the same metropolitan area, but experienced different housing wealth declines during the 2008 crisis. Following a housing wealth shock, employees are less likely to successfully pursue innovative projects, particularly ones that are high impact, complex, or exploratory in nature. Consistent with employee… 

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