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The Cost-Efficiency of a Guaranteed Jobs Program: Really? A Response to Harvey

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  • Noguchi Eri

Abstract

Responding to Harvey’s argument that a Guaranteed Jobs program would be more cost-efficient than a Guaranteed Income program, this paper points out several costs related to the latter that are not included in Harvey’s cost comparisons, mostly related to the administrative costs of operating a Guaranteed Jobs Program, which tends to be much more complex and high maintenance. This paper also points out that the unemployment rate would shift in response to the program, and that some unnecessary jobs would most likely need to be created if the program is to guarantee a job for everyone. However, the paper concludes that the public projects imagined as part of a guaranteed jobs program have merit on their own grounds, and should not be dismissed.

Suggested Citation

  • Noguchi Eri, 2012. "The Cost-Efficiency of a Guaranteed Jobs Program: Really? A Response to Harvey," Basic Income Studies, De Gruyter, vol. 7(2), pages 52-65, January.
    • Handle: RePEc:bpj:bistud:v:7:y:2012:i:2:p:52-65:n:4
    DOI: 10.1515/bis-2013-0009
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    References listed on IDEAS

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    1. Jurgen De Wispelaere & Lindsay Stirton, 2012. "A disarmingly simple idea? Practical bottlenecks in the implementation of a universal basic income," International Social Security Review, John Wiley & Sons, vol. 65(2), pages 103-121, April.
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