Nber Working Paper Series Evolution and the Growth Process: Natural Selection of Entrepreneurial Traits

This research suggests that a Darwinian evolution of entrepreneurial spirit played a significant role in the process of economic development and the dynamics of inequality within and across societies. The study argues that entrepreneurial spirit evolved non-monotonically in the course of human history. In early stages of development, risk-tolerant, growth promoting traits generated an evolutionary advantage and their increased representation accelerated the pace of technological progress and the process of economic development. In mature stages of development, however, risk-averse traits gained an evolutionary advantage, diminishing the growth potential of advanced economies and contributing to convergence in economic growth across countries. Oded Galor Department of Economics Brown University Box B Providence, RI 02912 and NBER [email protected] Stelios Michalopoulos Tufts University Department of Economics [email protected]