319 publications found
  • The Federal Job Guarantee

    William Darity, Darrick Hamilton. (2018). Intereconomics.


    The private sector has never adequately dealt with persistent and deep earning inequalities, worker vulnerabilities, and barriers to social mobility. In fact, it can be argued that the private sector’s employment practices are a major source of all of these social problems. Even in times of economic expansion, there are never enough private sector job openings to match the number of job seekers.


  • The Federal Job Guarantee – A Policy to Achieve Permanent Full Employment

    Mark Paul, William Darity, Jr., and Darrick Hamilton. (2018). Center on Budget and Policy Priorities. Policy Futures Report.


    Full employment has been part of the policy discourse in the United States since the early twentieth century. One of the most notable proponents of true full employment—defined as an economy in which any person who seeks a job can secure one—was President Franklin D. Roosevelt; his vision of “economic security” for all is a touchstone for full-employment advocates. For Roosevelt, direct hiring programs such as the Works Progress Administration (WPA) and the Civilian Conservation Corps (CCC) were great successes during the Great Depression. While they provided much-needed—albeit temporary—relief during the economic catastrophe, their size and transient nature were insufficient to achieve the long-term impact on employment that Roosevelt, and the full-employment supporters that came before and after him, sought.

    Today, economists and policymakers, including the governors of the Federal Reserve System, tend to associate “full employment” with a four-to-six percent unemployment rate, using the standard measure of unemployment.4 This measure of unemployment counts workers who do not have a job, have actively looked for work in the previous four weeks, and are currently available for work; it does not count the millions who have stopped actively seeking employment, or those inadequately employed in temporary, seasonal, or other precarious employment situations. The four-to-six percent unemployment rate referred to above is based on a conception defined by economists as the non-accelerating inflation rate of unemployment (NAIRU). It is noteworthy that this “target” has changed throughout time. Moreover, an economy with these unemployment rates needlessly condemns millions of U.S. workers to unemployment and underemployment, often resulting in severe economic hardship for those left behind by decisionmakers’ policy choices.


    Macroeconomics Modeling North America Quantitative
  • The Job Guarantee and the Economics of Fear

    Pavlina R. Tcherneva. (2018). The Levy Economics Institute.


    The job guarantee (JG) is finally getting the public debate it deserves, according to Pavlina R. Tcherneva, and criticism is expected. Following the Levy Institute’s latest report analyzing the economic impact of a JG proposal and providing a blueprint for its implementation, Tcherneva responds to alarmist claims that the JG is (1) an expensive big-government takeover, (2) unproductive and impossible to manage, (3) dangerously disruptive to the private sector, and (4) inflationary.


  • The Job Guarantee and Transformational Degrowth

    B. J. Unti. (2018). Full Emplyoment and Social Justice.


    The job guarantee was designed to address the problems of unemployment. However, in light of the environmental crisis, it is important to recognize the ways in which this policy proposal may be harnessed to cope with broader issues of social justice and ecological sustainability. This chapter looks specifically at how the vision of a job guarantee program aligns with and promotes the burgeoning movement of degrowth. In this respect, the most important feature of the job guarantee is that it eliminates the profit constraint on employment. With a job guarantee in place, the working class will not be hostage to profit-driven economic growth to secure an income. Under the existing paradigm of global capitalism, the world population faces a trade-off between ecological and economic prosperity. By severing the link between aggregate demand and employment, a job guarantee offers possibilities for an ecologically sustainable future without unemployment. In other words, a job guarantee decouples employment from economic growth and establishes a path for the reconciliation of economic and environmental goals. This chapter discusses the ways in which a job guarantee may be utilized to buttress the social justice and environmental aspirations of degrowth.


    Environmental Sustainability Macroeconomics
  • The Job Guarantee: An Institutional Adjustment Toward an Inclusive Provisioning Process

    Brandon McCoy. (2018). Full Employment and Social Justice.


    This inquiry seeks to establish that a job guarantee would animate the non-invidious re-creation of community, challenge the hierarchy which permeates social and economic relations, and facilitate an institutional adjustment toward a more inclusive provisioning process. In so doing, the analysis commences by revealing how the current institutional structure fails to provide a non-invidious provision of the material means of life.


    Implementation Macroeconomics
  • The Job Guarantee: Design, Jobs, and Implementation

    Pavlina R. Tcherneva. (2018). The Levy Economics Institute.


    The job guarantee (JG) is a public option for jobs. It is a permanent, federally funded, and locally administered program that supplies voluntary employment opportunities on demand for all who are ready and willing to work at a living wage. While it is first and foremost a jobs program, it has the potential to be transformative by advancing the public purpose and improving working conditions, people’s everyday lives, and the economy as a whole. This working paper provides a blueprint for operationalizing the proposal. It addresses frequently asked questions and common concerns. It begins by outlining some of the core propositions in the existing literature that have motivated the JG proposal. These propositions suggest specific design and implementation features. (Some questions are answered in greater detail in appendix III). The paper presents the core objectives and expected benefits of the program, and suggests an institutional structure, funding mechanism, and project design and administration.


    Implementation Macroeconomics
  • An Employer of Last Resort Scheme which Resembles a Free Labour Market

    Ralph S. Musgrave. (2017). Journal of Economics and Political Economy.


    The idea that government should act as employer of last resort (ELR) is an old one. That idea is often referred to nowadays as “job guarantee”. Many ELR schemes to date have been confined to the public sector. There is no good reason for that limitation: i.e. the private sector should use ELR labour as well. A second common characteristic of ELR schemes has been that (like the WPA in the US in the 1930s) they involve specially set up projects or schemes as distinct from subsidising temporary employees into work with EXISTING employers. The “existing employer” option is preferable. Once those two common defects in ELR are removed, the result is a system where the unemployed are subsidised into temporary and relatively unproductive jobs with existing employers till better jobs appear. And that in turn is what the unemployed tend to do in a totally free market: a scenario where there are no minimum wage laws and unemployment benefit, and where the unemployed tend to get temporary low paid jobs in both public and private sectors pending the appearance of better jobs. In contrast to a free market, under ELR, take home pay is maintained at socially acceptable levels. Assuming that free markets maximise GDP, it follows that the sort of ELR system advocated here will also maximize GDP. That free market style ELR system actually resembles the ELR system that the UK has at the time of writing, namely the Work Programme. The latter “free market” / Work Programme system is not free of faults, but as long as ELR employees do not displace regular employees to too great an extent, that “free market” ELR system is better than traditional ELR. Keywords. Employer of last resort, Job guarantee, Work project admistration. JEL. J60, J63, J64, J68.


  • Banking on ELR: How Hyman Minsky’s Ideas Can Help Tackle Unemployment

    Giuseppe Mastromatteo, Lorenzo Esposito. (2017). Journal of Economic Issues.


    This article suggests a way of building a comprehensive program that can effectively eliminate unemployment using the employer-of-last-resort (ELR) scheme, which comes from the Minskyan tradition. According to this scheme, the state offers a job to everyone who is willing to work. In response to the many critiques the ELR program has received, we show that it is the best alternative to eliminating unemployment, instituting sound public finance, ensuring social and financial stability, and achieving long-term growth and international economic balances. We also make suggestions with a view of ensuring the efficiency of the ELR institutional design. In this context, we highlight the accountability issue that is largely ignored in the relevant literature, but that is paramount given the state of public finances after the 2008 crisis. We argue that accountability and efficiency should be taken as the core of the ELR project if it is to be politically viable, and they can be addressed alongside the analogy of lending of last resort. In particular, ELR projects should be supervised by a state bank that is set up to ensure the cost-effectiveness of the scheme, along with controls from below. We conduct a simulation of how much such an ELR program would cost for Italy, showing that its gross cost would be less than 2.0 percent of Italian GDP and its net cost would be negative.


  • Economics for the Right to Work

    Manuel Couret Branco. (2017). International Labour Review.


    In this paper we argue that economics itself constitutes one of the main reasons why the human right to work seems to have not been taken seriously since its proclamation. We put forward four main reasons. In the mainstream lexicon, 1) Labour is a cost; 2) Employment is a second rank objective; 3) Individuals are resources holding productive specifications; and 4) Rights are rigidities. If it wants to promote the right to work, economics must produce an alternative discourse where the right to work is not just about fighting unemployment and is about work as much as about people.


    Human Rights Macroeconomics
  • Full employment: Are we there yet?

    Flavia Dantas, L. Randall Wray. (2017). The Levy Economics Institute.


    Flavia Dantas and L. Randall Wray argue that the emerging conventional wisdom–that the US economy has reached full employment–is flawed. The unemployment rate is not providing an accurate picture of the health of the labor market, and the common narrative attributing shrinking labor force engagement to aging demographics is overstated. Instead, falling prime-age participation rates are the symptom of a structural inadequacy of aggregate demand–a problem of insufficient job creation and stagnant incomes that conventional public policy remedies have been unable to address. The solution to our long-running secular stagnation requires targeted, direct job creation for those at the bottom of the income scale.


  • General Equilibrium Effects of (Improving) Public Employment Programs: Experimental Evidence from India

    Karthik Muralidharan, Paul Niehaus, Sandip Sukhtankar. (2017). National Bureau of Economic Research, Working Paper 23838.


    Public employment programs may affect poverty both directly through the income they provide and indirectly through general-equilibrium effects. We estimate both effects, exploiting a reform that improved the implementation of India’s National Rural Employment Guarantee Scheme (NREGS) and whose rollout was randomized at a large (sub-district) scale. The reform raised beneficiary households’ earnings by 14%, and reduced poverty by 26%. Importantly, 86%of income gains came from non-program earnings, driven by higher private-sector (real) wages and employment. This pattern appears to reflect imperfectly competitive labor markets more than productivity gains: worker’s reservation wages increased, land returns fell, and employment gains were higher in villages with more concentrated landholdings. Non-agricultural enterprise counts and employment grew rapidly despite higher wages, consistent with a role for local demand in structural transformation. These results suggest that public employment programs can effectively reduce poverty in developing countries, and may also improve economic efficiency.


    Development Implementation India Macroeconomics Quantitative
  • Government As Employer of Last Resort: A Tentative Proposal For Solving Youth Unemployment In Ethiopia

    Asayehgn Desta. (2017). International Journal of Shape Modeling.


    Despite having a favorable Gross Domestic Product (GDP) for more than fifteen years, Ethiopia is currently faced with exceptional challenging youth unemployment. The youth unemployment and idleness in Ethiopia has contributed to massive social unrest in several Ethiopian urban areas. To calm down the massive instability in the country that were precipitated mainly by the unemployed youth, the Ethiopian government has allocated 0.72 percent of its GDP to resolve the youth unemployment in the country. Realizing that the actions taken by the government will not have a substantial impact, this study has proposed that using the Employer of Last Resort (ELR) economic model in collaboration with Ethiopia’s Technical, Vocational Education and Technical (TVET) institutions, so that the ELR could be used as a road map to create pathways for a smooth transition between classrooms and office or factory jobs. To make the ELR proposal a reality, the study further suggests that the teachers and the curricular of the TVET institution need to be overhauled and reoriented. Local and municipal governments must administer the ELR program in the TVET institutions because they are most familiar with the economic needs of their communities. Based on the assumption that $2.00 USD per day would fulfill basic needs and meets the internationally set poverty line for developing countries, the budget for the 23 million ELR voluntary job seekers was estimated to cost $11.29 billion USD or 18.35 percent (i.e., 11.29/61.54) of Ethiopia’s GDP. Some policy makers in Ethiopia might argue that Ethiopia can’t spend 18 percent of its GDP to resolve the youth unemployment. The argument on the other hand rests that if the Ethiopian government genuinely accepts that employment is a basic right, then, it would be a rational choice to use domestic birr that doesn’t flare up inflation rather than waiting for the inevitable spark of uncontrivable social instability or depend on foreign dominated loans to mitigate youth unemployment in Ethiopia.


    Africa Inflation Quantitative Urban Youth
  • Impact of MGNREGA on Income And Employment of Scheduled Castes & Scheduled Tribes: in Chittoor District of Andhra Pradesh – A Case Study

    M. Reddi Naik. (2017). Paripex Indian Journal Of Research.


    The MGNREGA aims at enhancing the livelihood security of the rural households and can provide the basis of permanent social security system and even act as an instrument for planned and equitable rural development. The provisions of the MGNREGA will be implemented at the state level through the State Employment Guarantee Council which will be the nodal agency to monitor and review the implementation of the Act at the state level. This study examines the role and significance of the National Rural Employment Guarantee Act and its impact of the income and employment generation on the beneficiaries in study area during the period of 2014-15. The Government of India made a commitment that would immediately enact an employment Guarantee Act. The draft proposed by the National Advisory Council (NAC) envisaged legal guarantee to every household in rural areas for 100 days for doing casual manual work. The Chittoor district is one of the drought prone districts in Andhra Pradesh. The weaker sections such as Scheduled Castes (SC) and Scheduled Tribes (ST) are not provided with minimum working days under this programme as stipulated in the guidelines of the programme. In many cases, the works are not provided to the workers in time. Middleman/supervisors play a dominant role and the nature of exploitation is one of the major constraints in the implementation of the programme involved, setting aside the very purpose of the programme. Worst sufferers are the SC/ST people because of their weak social-economic bottlenecks. Hence, there is an urgent need to evaluate, this programme.


    India Macroeconomics Quantitative Racial Justice
  • Paltamo Full Employment Experiment in Finland: A Neo-chartalist Job Guarantee Pilot Program?

    Antti Alaja, Jouko Kajanoja. (2017). The Job Guarantee and Modern Money Theory.


    Long-term unemployment became a severe social problem in Finland after the early 1990s’ depression. Even though Finland experienced a period of robust export-led growth in the late 1990s and early 2000s, Finnish economy never returned to low unemployment rates of the 1980s, and in peripheral areas unemployment rates of 15–20 percent were not unusual. In the late 1990s, a new debate started to emerge in the Northeastern Kainuu regional council on how to respond to high economic and social costs of peripheral long-term unemployment. This debate initially led to a new kind of full employment experiment that took place in the small municipality of Paltamo in 2009–2013.


    Europe Macroeconomics
  • Politics, public works and poverty: evidence from the Bangladesh employment generation programme for the poorest

    Iffath Anwar Sharif, Ummul Hasanath Ruthbah. (2017). World Bank Group.


    Public works programs can be effective safety nets if they help allocate resources toward poor households. By setting wages lower than market rates public works programs identify poor households reasonably well. When these programs are oversubscribed and lack beneficiary selection rules however, discretion by local politicians can influence their distribution and their effectiveness as safety nets. This paper tests this hypothesis using household survey data on a seasonal public works program in Bangladesh. The results show access to local politicians is a significant determinant of participation, and can increase the relative probability of participation by 110 percent. Participation has a positive impact on food and nonfood consumption of poorer participants. The same is not true for less poor participants. The results suggest rather than relying on local politicians, public works aiming to maximize their impact on poverty should rely on an objective and transparent targeting system that ensures participation of larger numbers of poorer households.


    Asia Development Implementation Quantitative
  • Recent Social Security Initiatives in India

    Jean Drèze and Reetika Khera. (2017). World Development.


    There has been a major expansion of social security programs in India during the last 15 years or so, along with wider recognition of economic and social rights. This paper discusses five programs that can be seen as partial foundations of a possible social security system for India: school meals, child care services, employment guarantee, food subsidies, and social security pensions. The record of these programs varies a great deal between Indian states, but there is growing evidence that they make an important contribution to human well-being, and also that the achievements of the leading states are gradually spreading to other states as well. Much scope remains for extending these efforts: despite the recent expansion, India’s social security system is still very limited in international perspective. The paper also discusses some general issues of social policy in India, such as the arguments for universalization versus targeting and the value of a rights approach to social security.


    India Macroeconomics
  • Recognition of care work: the case of the Expanded Public Works Programme in South Africa

    Charlotte Bilo. (2017). International Policy Centre for Inclusive Growth.


    “In response to the continued growth in the number of unemployed people, in 2004 the South African government introduced the Expanded Public Works Programme (EPWP), offering short-term employment and on-the-job training in four different sectors: (1) infrastructure; (2) economics; (3) the environment and culture; and (4) social. In 2015 the EPWP went into the third phase with the aim of creating 2 million employment opportunities annually by 2020”. (…)


    Africa Gender
  • Rural employment and sustainable livelihood through NREGA

    Ashish Vats. (2017). International Journal of Academic Research and Development.


    In India more than 75% people lives in the rural areas and these areas are underdeveloped. Research and development sector in the country implemented several policies and programmes to overcome with the problems faced by rural people in terms of employment, sustainable livelihood, opportunities, poverty and growth. The Government of India has made efforts in this direction by introducing rural employment scheme under MGNREGA. The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) proposes to augment livelihood security by offering to the extent of one hundred day of guaranteed employment to the rural people of every household in a financial year. The scheme envisages certain objectives to improve rural life employment and livelihood. This scheme focuses on following areas – Conservation of water and it’s harvesting, shielding the poor mass from drought. Plantation and forestation are also on the agenda of MGNREGA. For the works under MGNREGA payment of workers are proposed to be made on piece rate basis in order to ensure that workers are paid for their labor. The present paper attempts to assess the rural employment and sustainable livelihood through MGNREGAs on the livelihood of the excluded population and its performance in creating durable and sustainable community assets in the rural areas.


    Development India Macroeconomics
  • Social Safety Net Programs in Bangladesh: An Empirical Study on the Employment Generation Program for the Poorest (EGPP) Project

    Khandokar Zakir Hossain, Md. Isahaque Ali, . (2017). European journal of social sciences.


    This research work aim to accomplish an empirical study on the Employment Generation Program for the Poorest (EGPP) scheme of Bangladesh. The objective of this study is to find out whether the EGPP program is promoting the livelihood of the poor people or it remains the same as before. A quantitative approach is applied here as research methods, where data is collected from the primary sources through interview technique and KII. The findings reveal that the purchase power of EGPP beneficiaries has significantly changed and food intake frequency has been increased. It is found that before involvement in EGPP 67.5% of interviewees could manage to have meal twice in a day and 25% could have once in a day. After participation in EGPP the scenario has changed; the percentage of people those could manage to have meal once in a day has gone off and people who could have meal twice in a day reduced to 7.5% but sudden change due to increase of purchase capability above 92.5% people are able to have meal three times in a day. A significant improvement is also found in the case of items of food intake, diversification in food items, quality of food intake, quantity of food intake. Besides, it revealed that social status or social acceptance of the poor peoples of the EGPP recipients elevated. Most of the respondents opined positively regarding the improvement of employment scope in the lean season through EGPP program.


    Asia Development Implementation Quantitative
  • Socio-economic Empowerment of Women through NREGA in Gulbarga District : A Study on Problems and Challenges

    Basalingamma S.H., Arunkumar Jadhav. (2017). Research Journal of Philosophy & Political Science.


    The civil and political rights are now joined by human welfare guarantees to employment and fair working conditions, health, food and social security, education and participation in cultural life of the community. These rights came from socialist and welfare state conceptions that emphasized economic social and cultural rights over political rights. The concept of human right underlines the point that every human being is entitled to enjoy certain basic conditions of civilized life irrespective of the socio – Economic system he lives in.


    Development Gender Human Rights India
  • The Effectiveness of the Expanded Public Works Program in Promoting Local Economic Development: A case study of Zibambele Project, eThekwini Municipality

    Nonkululeko Zulu, Jabulani C. Nyawo, Pfano Mashau. (2017). Journal of Economics and Behavioral Studies.


    In South Africa, with the advent of democracy, the Expanded Public Works Programme was conceived as an employment strategy by government in order to alleviate poverty and promote a better standard of living for marginalised groups, particularly youth and women in South Africa. This is a qualitative exploratory research in which the data was collected through face-to-face interviews with beneficiaries. The researcher utilised the exploratory research in order to explore the effectiveness of the Zibambele Project at the local level, and to see how it creates employment opportunities for marginalised groups. The key focus of the literature review is on local economic development, with special reference to the poverty alleviation strategies as a guideline for economic growth at local levels. The findings show that the government-led programmes that eliminate poverty at the grassroots level as well as creating employment opportunities for marginalised are crucial. Furthermore, the study shows that the government programmes are more needed in order to tackle poverty and also increase local economic development in South Africa.


    Africa Development Implementation Quantitative
  • The Employer of Last Resort for a ‘Capital-Poor’ Economy

    Edward J. Nell. (2017). The Job Guarantee and Modern Money Theory.


    ‘Capital-rich’ economies typically experience Keynesian unemployment, which an ELR program can offset with expenditure that has a multiplier effect. ‘Capital-poor’ economies normally suffer from Marxian unemployment, which an ELR can counter-act with expenditure, first having a multiplier impact, but subsequently developing an accelerator effect, and building up productive capacity.


    Development Macroeconomics
  • The Job Guarantee and Eurozone Stabilisation

    Martin Watts, Timothy P. Sharpe, James Juniper. (2017). The Job Guarantee and Modern Money Theory.


    Government macroeconomic policy is typically assessed against fiscal accounting imperatives; so called ‘sound’ finance. Modern Monetary Theory, which is underpinned by the principles of chartalism and functional finance, shows that sound finance is not useful for prescriptive policy since it fails to distinguish between (1) a sovereign currency government and non-sovereign currency government and (2) financing (initial finance) and funding (final finance). Instead, the Modern Money/Circuit theoretic approach reframes the debate regarding the appropriate (functional) conduct of fiscal and monetary policy, and is sensitive to specific institutional arrangements. The framework allows for a more informed and robust debate vis-a-vis finance and the Job Guarantee. This chapter engages in this debate by unpacking and extending the arguments of Harvey (2013) and Wray (2013) in the previous edited volume to critically assess the options and implications—macroeconomic and financial—of financing and funding the Job Guarantee for a sovereign currency and non-sovereign currency (Eurozone) government.


    Europe Inflation Macroeconomics
  • The Job Guarantee: A Superior Buffer Stock Option for Government Price Stabilisation

    William Mitchell. (2017). The Job Guarantee and Modern Money Theory.


    Governments have two broad buffer stock options when it comes to price stabilisation:

    (a) Unemployment buffer stocks: Under a mainstream NAIRU regime (the current orthodoxy), inflation is controlled using tight monetary and fiscal policy, which leads to a buffer stock of unemployment. This is a very costly and unreliable target for policy makers to pursue as a means for inflation proofing.
    (b) Employment buffer stocks: The government exploits the fiscal power embodied in a fiat-currency issuing national government to introduce full employment based on an employment buffer stock approach. The Job Guarantee (JG) model which is central to Modern Monetary Theory (MMT) is an example of an employment buffer stock policy approach.

    In this paper, we juxtapose the two buffer stock options from the point of inflation control with a discussion of where they fit into the literature on the Phillips curve and consider the macroeconomic efficiency implications of each. The discussion will consider the implications for the fiscal position of the government arising from each option.


    Australia Macroeconomics Modeling Quantitative
  • The role of labour market and sectoral policies in promoting more and better jobs in lowmiddle income countries: Issues, evidence and policy options: The case of India

    Jayati Ghosh. (2017). International Labor Organization.


    This study highlights the lack of structural transformation and the slow growth in productive jobs. In the case of women, the labour market trends even pointed to decreasing workforce participation. The author examines the effectiveness of labour market and sectoral policies in addressing these problems, notably the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) public works programme and the “Make in India” sectoral policy.


    Development India
  • Unemployment: The Silent Epidemic

    Pavlina R. Tcherneva. (2017). The Levy Economics Institute.


    This paper examines two key aspects of unemployment–its propagation mechanism and socioeconomic costs. It identifies a key feature of this macroeconomic phenomenon: it behaves like a disease. A detailed assessment of the transmission mechanism and the existing pecuniary and nonpecuniary costs of unemployment suggests a fundamental shift in the policy responses to tackling joblessness. To stem the contagion effect and its outsized social and economic impact, fiscal policy can be designed around two criteria for successful disease intervention–preparedness and prevention. The paper examines how a job guarantee proposal uniquely meets those two requirements. It is a policy response whose merits include much more than its macroeconomic stabilization features, as discussed in the literature. It is, in a sense, a method of inoculation against the vile effects of unemployment. The paper discusses several preventative features of the program.


    Health Macroeconomics
  • What Are the Relative Macroeconomic Merits and Environmental Impacts of Direct Job Creation and Basic Income Guarantees

    Pavlina R. Tcherneva. (2017). Praktyka Teoretyczna.


    There is a body of literature that favors universal and unconditional public assurance policies over those that are targeted and means-tested. Two such proposals—the basic income proposal and job guarantees—are discussed here. The paper evaluates the impact of each program on macroeconomic stability, arguing that direct job creation has inherent stabilization features that are lacking in the basic income proposal. A discussion of modern finance and labor market dynamics renders the latter proposal inherently inflationary, and potentially stagflationary. After studying the macroeconomic viability of each program, the paper elaborates on their environmental merits. It is argued that the “green” consequences of the basic income proposal are likely to emerge, not from its modus operandi, but from the tax schemes that have been advanced for its financing. By contrast, the job guarantee proposal can serve as an institutional vehicle for achieving variousenvironmental goals by explicitly targeting environmental rehabilitation, conservation, and sustainability. Finally, in the hope of consensus building, the paper advances a joint policy proposal that is economically viable, environmentally friendly, and socially just.


    Environmental Sustainability Macroeconomics
  • Who Owns the Intellectual Fruits of Job Guarantee Labor?

    Rohan Grey. (2017). M.J. Murray, M. Forstater (eds.), in "The Job Guarantee and Modern Money Theory", DOI 10.1007/978-3-319-46442-8_9.


    The neatly packaged synthesis of ideas, principles, and politically motivated rhetorical framing decisions that has come to be known as MMT has much to offer a range of political debates, ranging from fiscal policy and banking reform through to environmental, gender and racial justice. Like the various limbs and organs of the human body, these different offerings may appear to be more or less essential to MMT’s core theoretical catechism, depending on one’s particular vantage point and prior values. Nevertheless, to continue the analogy, it is not unreasonable to view the MMT corpus as being coordinated along two dimensions, and driven by two key forces, much like the human body is coordinated by its cardiovascular and central nervous systems. In particular, MMT’s “brain” is its historical and technical under- standing of the nature and operational dynamics of money, broadly understood as a mode of, and instrument for, social organization, and its “heart” is its full- throated and unapologetic advocacy for a universal right to dignified and meaningful work, ultimately enforced by the state through direct job creation.


    Implementation Macroeconomics
  • Why Coretta Scott King Fought for a Job Guarantee

    David Stein. (2017). Boston Review, Forum 2.


    Four days after her husband’s murder on April 4, 1968, Scott King returned to Memphis to support the city’s striking sanitation workers. She marched with an estimated 50,000 people before concluding at a rally at the Memphis city hall. Amidst drizzling rain, she reminded her audience of the terrain they had traversed and the journey ahead: “We moved through . . . the period of desegregating public accommodations and on through voting rights, so that we could have political power. And now we are at the point where we must have economic power.” What did that mean to her in real terms? “Every man deserves a right to a job or an income,” she told the crowd of supporters.

    Scott King saw economic precarity as not just a side effect of racial subjugation, but as central to its functioning. Political enfranchisement was just the first step. As she explained in 1976, “People couldn’t see the economics of the movement because of the drama. . . . [The] next step was parity in income distribution.” The solution Scott King promoted is an old one, but its time has come: legislation to provide federal governmental guarantees to employment, at living wages, where people are located, and in areas that serve social needs—rather than those of the market.

    Such politics and values had been at the heart of black freedom movements since at least the late nineteenth century. Although many histories of welfare state development foreground the importance of Germany under Otto von Bismarck, there was also a contemporaneous black radical tradition of welfare state struggle during Reconstruction. W. E. B. Du Bois called this tradition “abolition democracy,” defined as a focus on creating new democratic institutions to provide safety and social provision while also seeking to eradicate institutions of racial violence.


    Human Rights North America Racial Justice
  • Women’s perception of participation in NREGA, empowerment as a process of change. : A comparative Minor Field Study between two villages in Andhra Pradesh, India

    Maxine Olausson. (2017). Uppsala Universitet.


    This thesis is a comparative analysis between two villages in India, examining personal accounts from participants in the world’s largest anti-poverty programme, the Mahatma Gandhi National Rural E …


    Gender India
  • Would a Job Guarantee Guarantee Jobs? An Analysis of the Employer of Last Resort Proposal

    Hugh Sturgess. (2017). The University of Sydney.


    Unemployment is a chronic feature of capitalist economies, with a host of related ills such as poverty, personal and economic insecurity and social stigma. In much of the developed world, unemployment has never returned to the low levels present before the mid-1970s, and increasingly insecure and part-time work has replaced permanent, full-time employment. Over two million Australians are either officially unemployed, marginally connected to the labour market but desiring work or are underemployed.The policy referred to here as the Job Guarantee (JG), also known as the Employer of Last Resort and Buffer Stock Employment, is a proposal to address unemployment and underemployment directly, through the provision of a blanket offer of employment at the minimum wage for anyone willing and able to work. This thesis seeks to examine in detail the practicality and desirability of the JG as a solution to the problem of scarce and insecure employment.


    Australia Macroeconomics
  • “JOBS FOR ALL”: Another Dream of the Rev. Dr. Martin Luther King Jr.

    Matthew Forstater. (2016). Global Institute for Sustainable Prosperity, Policy Note No. 110.


    “Not many folks remember that the 1963 “March on Washington” was officially named the “March on Washington for Jobs and Freedom.” This detail often gets lost amid the important celebration of the general achievement and highlights such as the Rev. Dr. Martin Luther King, Jr.’s “I Have a Dream” oration. Indeed, the theme of job creation runs though Dr. King’s writings. Perhaps no single policy could have as great a social and economic impact on the African American community—and the entire country—as a federally funded Job Guarantee for every person ready and willing to work. This is a policy approach that was explicitly supported by Dr. King, and that is currently receiving attention in economic and policy circles”


    Human Rights North America Racial Justice
  • “This Nation Has Never Honestly Dealt with the Question of a Peacetime Economy”: Coretta Scott King and the Struggle for a Nonviolent Economy in the 1970s

    David Stein. (2016). Souls: a Critical Journal of Black Politics, Culture, and Society. Volume 18, Issue 1: Black Women’s Labor: Economics, Culture, and Politics.


    This article highlights the work of Coretta Scott King in the struggle for governmental guarantees to employment in the 1970s. In the two decades after her husband’s death, Scott King devoted herself to achieving governmental guarantees to employment and disentangling militarism and violence from the economy. For her, this was the continuation of the civil rights movement. Considering the efforts of Scott King highlights the class content of the long civil rights struggle after the 1960s and the contested evolution of neoliberalism. Further, focusing on the unsuccessful efforts of Scott King also reveals the difficulty of achieving legislation to ameliorate the crisis of unemployment, and how racism and patriarchy structured labor markets during this period.


    Gender Human Rights Macroeconomics North America Racial Justice
  • Curbing the Labor Market Divide by fostering Inclusive Labor Markets through a Job Guarantee Scheme

    Saskia Klosse, Joan Muysken. (2016). Psychosociological Issues in Human Resource Management.


    Globalization, demographic trends and technological developments pose important challenges to European labor markets: job quality has deteriorated and precariousness has increased. Austerity measures enforced after the financial crisis have aggravated this trend. We argue that there is a case for appropriate active inclusion policies, complemented by stimulating macroeconomic policies. Using descriptive statistics and a systematic review of the literature, we propose to experiment with Job Guarantee (JG) projects. These projects could provide a macroeconomic stimulus to the economy by enabling everybody who is willing to work to take up a JG job at the minimum wage. Job guarantee projects are not a panacea to all evils. But experience shows that they could help to stop the casualization of the labor market by providing quality jobs and sustainable employment opportunities. As such, JG projects could foster inclusive labor markets. The projects should be financed by redirecting social security (administration) funds, by including JG elements in the European Investment Plan and by using part of the €80 billion which the European Central Bank (ECB) is injecting each month in the euro area. Our proposal aims to curb the labor market divide by making labor markets more “inclusive” through a solid Job Guarantee scheme. JEL codes: J48; E6; J21; J68


  • Employment or Income Guarantees: Which Would Do the Better Job?

    Gertrude Schaffner Goldberg. (2016). New Labor Forum.


    Not long ago, when the nation was less wealthy, our expectations were greater. Paradoxically, as national income has increased, expectations have diminished. Neither Democratic presidential candidate proposed the income or job guarantees (JGs) that are compared in this article and that four decades ago were on the political agenda. According to Hillary Clinton, Bernie Sanders’ proposal for more modest guarantees of health care and higher education were”unrealistic” -okay for denmark but not for the United States, despite its somewhat higher per capita income. Perhaps the concern about economic insecurity that was unleashed during the campaign may lead us once again to consider these guarantees against the age-old evils of poverty and unemployment.


    Environmental Sustainability North America Racial Justice
  • Evaluación de la ejecución presupuestal del programa generación del empleo social inclusivo Trabaja Perú y su influencia en el desarrollo económico de la Región San Martin, periodo 2012 – 2013 – 2014

    Karen Fiorella Mestanza Vela, Gladys Melita García Ruiz. (2016). Universidad Nacional de San Martín.


    La presente tesis que lleva por titulo: Evaluacion de la Ejecucion Presupuestal del Programa Generacion del Empleo Social Inclusivo Trabaja Peru y su influencia en el Desarrollo Economico de la Region San Martin, Periodo 2012- 2014, tiene por objetivo determinar la influencia de la ejecucion presupuestal del Programa Generacion del Empleo Social Inclusivo Trabaja Peru, en el Desarrollo Economico de la Region San Martin durante el periodo 2012-2014. Este estudio le compete una investigacion de tipo no experimental, de diseno correlacional. Asi mismo, la muestra estuvo constituida por el acervo documentario en los periodos 2012, 2013, y 2014, que se encuentran en poder del Gobierno Regional y del INEI. Con el desarrollo de la investigacion se llego a las siguientes conclusiones: Se evidencia similar tendencia, ya que en el periodo 2013 se presento un mayor indice en cuanto a la ejecucion presupuestal del Programa Generacion del Empleo Social Inclusivo Trabaja Peru, lo cual impulso a que varias personas tuvieran acceso a empleos dignos, asimismo en el 2013 la region de San Martin, presento un indice de crecimiento economico equivalente a un 5.01%, ya que el ingreso per capita se incremento, se reducieron el numero de personas desempleadas, y mas personas encontraron la forma para acceder a los servicios basicos. De esta manera se puede afirmar que la hipotesis alterna (Hi) es correcta, ya que se evidencia que la Ejecucion Presupuestal del Programa Generacion del Empleo Social Inclusivo Trabaja Peru influye en el Desarrollo Economico de la Region San Martin, periodo 2012-2014. La aplicacion de programas sociales que contribuyen con el bienestar de la poblacion en general, se relaciona de manera positiva con el desarrollo economico presente en la region de San Martin, ya que se ha evidenciado que muchas personas han mejorado su calidad de vida al contar con un trabajo fijo, que le genere ingresos frecuentes


    Macroeconomics South America
  • Female labor force participation and child education in India: evidence from the National Rural Employment Guarantee Scheme

    Farzana Afridi, Abhiroop Mukhopadhyay, and Soham Sahoo. (2016). al. IZA Journal of Labor & Development 5:7.


    We exploit the implementation of India’s National Rural Employment Guarantee Scheme to identify exogenous shifts in mothers’ labor force participation and its impact on their children’s educational outcomes. Using child level panel data, we find that a mother’s participation in the labor force increases her children’s time spent in school and leads to better grade progression. These results account for age cohort trends and for differences in time trends by initial levels of economic development at the district and sub-district levels. We find evidence of greater household decision-making power of working mothers as an explanation of our results.

    Keywords: Labor, Education, Gender, Bargaining


    Gender Implementation India Quantitative Youth
  • Implementation of the Expanded Public Works Programme (EPWP) in South Africa, 2004-2014

    Evelyn Nomvula Mapule, Mkhatshwa-Ngwenya. (2016). University of South Africa.


    Most developing countries are faced with high levels of unemployment, poverty, underemployment and inadequate infrastructure. The causes of poverty and unemployment in South Africa are manifold and complex. South Africa is one of the developmental states which gained its independence in 1994. There is a high rate of unemployment, poverty, unskilled workforce, inequality and low quality service delivery in South Africa (SA). Communities across provinces are unhappy about the above mentioned issues and have, over the years, expressed their dissatisfaction through picketing, demonstrations and strikes. SA, as a developmental state, has to balance economic growth and social development. Post 1994, the African National Congress (ANC)-led government promised to address the triple challenges facing the SA economy, namely poverty, unemployment and inequality. The study pursues to identify and describe factors that necessitated the EPWP in SA. It further investigates the performance of provinces during the implementation of the EPWP inorder to understand the current implementation approach. Both qualitative and quantitative methods were used to obtain data. Published figures from the Department of Public Works (DPW) reports and on the websites of relevant organisations were analysed. The objective was to identify small-medium-micro enterprises (SMMEs) that were created, trainings supported, and work opportunities (WOs) as well as full time equivalents (FTEs) that were created. A questionnaire was disseminated to three officials per four sectors, totaling (twelve) across four provinces namely Mpumalanga, Limpopo, Gauteng and North West. The officials were from the EPWP implementing bodies and coordinating departments. The questionnaire sought information on how EPWP projects were implemented and reported in the two phases. The implementing bodies were expected to specify their roles, targets and work opportunities that they hoped to create. The correct sampling method and size were chosen based on the approved research proposal and its intention. Challenges experienced by the coordinating bodies, implementing bodies and data managers during the implementation of the EPWP were tabulated. Recommendations and remedial actions to identified challenges were also highlighted. This study proposes interventions with regard to the coordination of the EPWP, training, improved monitoring of projects, political buy-in and allocation of budget that will improve the daily wage rate.


    Africa Development Implementation Quantitative
  • Inclusive labour market: A role for a job guarantee scheme

    Saskia Klosse, Joan Muysken. (2016). United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology.


    In the European labour market there is a clear scope for improvement in activity rates. Moreover, sustainable employment is impeded by the pervasiveness of temporary work, self-employment and part-time work. As a consequence there is a clear role for active inclusion policies, complemented by stimulating macroeconomic policies. However, the implementation of appropriate policies, initiated in 2008, never really took off and stagnated due to the austerity measures enforced after the financial crisis. For that reason we propose to experiment with Job Guarantee (JG) projects. On the one hand, JG projects should provide a macroeconomic stimulus to the economy by employing everybody who is out of work in JG jobs at the minimum wage. On the other hand, JG projects could stop the downward trend in job quality and foster inclusive labour markets by providing quality jobs and sustainable employment. We propose to finance the JG Scheme by redirecting social security (administration) funds, by including JG elements in the European Investment Plan (also known as the Juncker Plan) and to spend part of the € 60 billion which the ECB is injecting each month in the Euro Area on job guarantee projects.


    Europe Macroeconomics
  • Job guarantee as model for diminishing social security costs

    Kees Mosselman, Louis Polstra. (2016). Centre for Research and Innovation - Work and Employment.


    In March 2016 almost 21.5 million men and woman in de EU were unemployed. The unemployment rate was 8.8%. The rates are declining, but still a lot of people have no job. Throughout Europe national social security programs provide cash benefits to replace lost income as a result of unemployment (ISSA 2014). Some of these programs are employment-related, some universal and others means-tested. Employment-related programs are based on periodic payments on length of (self-)employment by the employee and/or the employer. In a means-tested program the household resources are measured against a standard of subsistence needs. Only who satisfy the means test receives the benefit. In the Netherlands two programs providing the unemployed people a benefit. The Social Insurance Program is an employment-related program. The amount of the benefit depends on the early salary. The duration of the benefit depends on how long someone has worked, with a max of 37 month. If the benefit is less than the social minimum or the benefit stops, the unemployed person can apply for social assistance, a means-tested supplement.
    The unemployment rate in the Netherlands ( May 2016) is 6,4%. But in the past employees and employers misused the Disability Act to receive a higher and permanent benefit for employees who lost their job due to economic crises. After the turn of the century new legislation has blocked this route. Still, a lot of disabled unemployed people are able to work. The prospect is that the number of unemployed (disabled or not) will not decline. This is a burden for the national government and therefore for the welfare state. How to diminish the cost of the unemployment benefit programs. One of the possible solutions is changing both programs into a job guarantee program (JG). The basic JG concept is developed last century by some post-Keynesian economists in the US and Australia, particularly Hyman Minsky (1986), Randall Wray (1998) and Bill Mitchell (1997). A modern JG proposal provides the ability to strengthen both the social and economic foundation of the welfare states.


    Europe Macroeconomics Quantitative
  • Job Guarantee as Model for Strengthening the Welfare State: The Case of the Netherlands

    Kees Mosselman, Louis Polstra. (2016). E-Journal of international and comparative labour studies.


    In this article we present the Job Guarantee concept to complement the existing social security system. In the current welfare state, unemployment is high and many people have to rely on unemployment benefits or social assistance. The prognosis is that this will hardly go down in the future. Assuming a natural unemployment rate of 4.25% and an actual medium-term unemployment rate of 5.5 – 6%, the social assistance rate will move towards more or less 5%. That’s a substantial financial burden. With Job Guarantee, we make use of the unutilized labor and production capacity and unutilized earning capacity. For the Netherlands we compare the net public costs of the present social assistance system with and without a Job Guarantee program, and we conclude that by changing unutilized labor capacity into production the welfare state is able to compensate for the weakest point, the low reintegration effectiveness of our system of income guarantee.


    Europe Macroeconomics Modeling Quantitative
  • Making Freedom a Fact

    David Stein. (2016). Jacobin Magazine.


    The recent exchanges between Ta-Nehisi Coates, Cedric Johnson, and Brian Jones are part of a growing discussion about the exploitation, exclusion, and oppression of black people in the US. Centrally concerned with questions of race and class, these debates draw on a distinguished intellectual pedigree that includes scholars like Cedric Robinson, whose concept of “racial capitalism” emphasizes how “the development, organization, and expansion of capitalist society pursued essentially racial directions.”

    Black freedom struggles, acting on this analysis without necessarily giving it the same name, have placed employment and economic sustenance at the core of their agenda since at least Reconstruction. Indeed, arguably no social force in American society has fought as strenuously for these goals as the multifaceted black left.

    The Black Panther Party and civil rights activist Bayard Rustin did not agree on many things in 1967, but they both thought the government should ensure that everyone who wanted a job had one. The recent calls for guaranteed employment from both the Coalition of Black Trade Unionists and the Black Youth Project 100 affirm and continue this long history.


    Health Human Rights North America Racial Justice
  • Well Worth the Effort: Value of MGNREGA Wells in Jharkhand

    Anjor Bhaskar, Sunil Gupta, Pankaj Yadav. (2016). Economic and Political Weekly, Vol. 51, No. 19, pp. 40-48.


    More than 1,00,000 wells were sanctioned for construction under the Mahatma Gandhi National Rural Employment Guarantee Act in Jharkhand during the last few years. This study evaluates the outcome of this well-construction drive through a survey of nearly 1,000 wells in 24 randomly selected gram panchayats. A majority of sanctioned wells (60% with parapet and 70% without) were completed at the time of the survey. Nearly 95% of completed wells are being utilised for irrigation, leading to a near tripling of agricultural income of those in the command area. The real rate of return from these wells in Jharkhand is estimated to be close to 6%, a respectable figure for any economic investment. However, well construction involves some out-of-pocket expenses and this investment is risky: nearly 12% of the wells were abandoned midway.


    Development Environmental Sustainability Implementation India Quantitative
  • Women as Agents of Development: An Assessment of Modimola Village in the North West Province of South Africa through the Expanded Public Works Programme (EPWP)

    Lere Amusan, Sheila Ngoh Manka. (2016). Gender and behaviour.


    Women were, in the past, perceived as instruments of development in Africa. This is concretised by the religious roles accorded to them as a gender that can only play a supportive role for men in their communities. They also serve as agents of underdevelopment when contextualised within the South African perspective. The role of women in a selected village, Modimola, North West Province of South Africa is examined in this paper. Due to their participation in EPWP with special focus on the agricultural sector, women were able to earn a living and learn how to embark on subsistence farming in order to alleviate poverty in the village. Face-to-face interviews were conducted with 22 female participants during the study and data collected confirm the invaluable roles of women in terms of food production, and engines of sustainable development in the community under study. It is concluded that women in development are indispensable as men are always on the move looking for non-existent jobs in the metropolis. The same explains the futility of ‘determinism’ as agents of role play in society.


    Africa Development Gender Quantitative
  • Alleviating Poverty in South Africa – A Theoretical Overview of the Expanded Public Works Program

    Zanele E. Mfusi, Krishna K. Govender. (2015). Journal of Economics.


    AbstractPoverty alleviation is a challenge facing most developing countries. This paper reports on one national government strategy, namely the Expanded Public Works Program (EPWP) which was implem…


    Africa Development
  • Classical political economy: the subsistence wage, and job guarantee concerns

    John F. Henry, . (2015). Journal of Post Keynesian Economics.


    In the theoretical framework of classical political economy, including the revisions of Marx and the more recent work of Piero Sraffa and others, the concept of the subsistence wage figures prominently. Here, following a recounting of this concept and demonstrating its significance not only for classical theory but also for larger social concerns, I argue that the “base wage” (as it is sometimes termed) as articulated within a “Job Guarantee” program, is (or should be) comparable to the subsistence wage but requires modification to make it (roughly) equivalent. It will be demonstrated that adherents of the classical approach did not rest their wage theory on a quasi-neoclassical supply–demand approach (with some primitive marginal productivity notion lying behind a supposed demand for labor schedule), but understood wages as socially determined where institutional and historic forces established a normative standard around which market wages gravitated. Such an approach was shared by, among other…


    Implementation Macroeconomics
  • Completing the Roosevelt Revolution: Why the Time for a Federal Job Guarantee Has Come

    Pavlina R. Tcherneva. (2015). Global Institute for Sustainable Prosperity, Policy Note No. 108.


    Discussions of the ‘politically possible’ remind me of a favorite saying: “Argue for your limitations, and sure enough they’re yours.”

    At a time when austerity dominates the political discourse, ambitious proposals such as the Job Guarantee and the Employer of Last Resort (Tcherneva 2012) may seem unworkable.

    And yet, surveys show that support for the Job Guarantee proposal is widespread. Recent Gallup Poll (Jones 2013) reported support ranging from 72 to 77% for government employment programs and job creation laws to employ the unemployed.


    Human Rights Macroeconomics
  • Employer of Last Resort Program for Italy: It’s cheaper than you think

    Giuseppe Mastromatteo, Lorenzo Esposito. (2015). Global Institute for Sustainable Prosperity.


    Global-ISP.org @GISP_Tweets After the 2008 crisis destroyed the confidence of public and institutional opinion in the received macroeconomic wisdom, the world is once again ready to understand how modern capitalism really works, and from central banks to academic institutions, economic thought has become receptive to a rereading of Hyman Minsky. His contribution is already at the center of the debate on financial stability, but his work on labor market policies, particularly his proposal to give the State the role of “Employer of Last Resort” (ELR) is still being ignored by the mainstream. After decades of virtually disappearing from the economic policy discourse, the concept of full employment is finally back on the agenda as central banks and governments attempt to reduce unemployment through monetary and fiscal policies. All of a sudden, a war on poverty, a fairer income distribution, full employment and financial stability are back on the agenda because this is what the world economy needed after the global financial crisis. However, in a world where, according to the International Labor Organization, the number of unemployed people exceeded 200 million, full employment can only be reached with a deliberate active policy. ELR is the answer.


    Europe Macroeconomics