Would the job guarantee crowd out existing private or public sector work?
No. (See questions 35 and 43). The private sector remains the primary engine of employment growth and creates the majority of employment opportunities. The job guarantee would be authorized as a new program that creates new employment opportunities for jobseekers. It can help support and strengthen existing public sector work, but it does not replace it. Experience with large scale employment programs indicates that they do not crowd out public services.
Wray, R. et al. (2018). Public Service Employment: A Path to Full Employment. Levy Economics Institute.Back to all FAQs