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It is the deep structures of the epidermis which actually generate new skin. The epidermis has 5 layers and the deepest layer called stratum germinativum or stratum basale which continuously generates new cells.
"Stratum Germinativum produces new skin cells to replace worn away stratum corneum ."
Source:http://www.geocities.com/centennial3d/notesskin.html
The dermis contains nerve endings and blood vessels and this is where pain is most evident. So it is the epidermis which is responsible for new skin generation not the dermis.