Chapter 44 Labor markets and economic growth Among macroeconomists the shift of research effort is near total eclipsing the business cycle focus that had dominated the field for decades. Behind this is a recognition of the enormous welfare implications of sustained economic growth and a renewed desire to understand the vast differences in living standards among countries which dates back at least to Smith. What some have called the neoclassical revival in growth economics has come to dominate macroeconomic research. Developments in this area should be of particular interest to labor economists because much of the revival of growth economics builds on the theory of human capital. Because human capital is by definition embodied skills and knowledge and because advances in technical knowledge drive economic growth it follows that human capital accumulation and economic growth are intimately related. This chapter reviews recent developments in growth economics with a particular focus on labor market and human capital issues.