In Paleolithic times, people chased their food because food was scarce. They only had rough, tentlike shelters. Life was based on surviving, and nothing else.
In Neolithic Times, People farmed and domesticated animals. That gave them the ability to build, larger, permanent homes. The homes were large, with several rooms.
This change impacted humans because they had time to specialize in jobs and have larger communities. Without that, present day humans wouldn't have cities, countries, government, schools, or food systems.