IDEAS home Printed from https://ideas.repec.org/a/prg/jnlpep/v2021y2021i6id792p748-767.html
   My bibliography  Save this article

Employer of Last Resort for the Czech Republic

Author

Listed:
  • Filip Červenka

Abstract

This article simulates a programme called Employer of Last Resort, and analyses its potential impact in the Czech Republic. The design of the programme guarantees perfectly inelastic demand for labour at a given wage level. In practice, the state would offer a job to anyone willing to work in order to eliminate involuntary unemployment, reduce poverty and income inequality and secure stable growth. My aim is to estimate hypothetical effects on the main objectives and calculate fiscal demands if the programme was launched on the Czech labour market. The results suggest that the programme could significantly reduce unemployment and decrease income inequality. On the other hand, it would have limited impact on income poverty. The gross wage costs of implementing the Employer of Last Resort programme in the Czech Republic are in all constructed scenarios below 1% of the gross domestic product and further calculations suggest that the total net costs could even be negative.

Suggested Citation

  • Filip Červenka, 2021. "Employer of Last Resort for the Czech Republic," Prague Economic Papers, Prague University of Economics and Business, vol. 2021(6), pages 748-767.
    • Handle: RePEc:prg:jnlpep:v:2021:y:2021:i:6:id:792:p:748-767
    DOI: 10.18267/j.pep.792
    as

    Download full text from publisher

    File URL: http://pep.vse.cz/doi/10.18267/j.pep.792.html
    Download Restriction: free of charge
    File URL: http://pep.vse.cz/doi/10.18267/j.pep.792.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.18267/j.pep.792?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jan Kregel, 2009. "Mobilizing Domestic Resources," International Journal of Political Economy, Taylor & Francis Journals, vol. 38(3), pages 39-57.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Devin T. Rafferty, 2023. "The International Monetary System’s Structural Flaws, a Process of Economic Development, and the Job Guarantee," Review of Radical Political Economics, Union for Radical Political Economics, vol. 55(4), pages 651-659, December.

    More about this item

    Keywords

    Employer of Last Resort; unemployment; income inequality; poverty;
    All these keywords.

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prg:jnlpep:v:2021:y:2021:i:6:id:792:p:748-767. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.