(Full) Employment Policy: Theory and Practice
AbstractAlthough the U.S. unemployment rate in 1998 was at its lowest level since the late 1960s, the nation's employment problem is still far from solved. Although many economists assume that unemployment tends toward a natural rate below which it cannot go without creating inflation, this paper asks whether the current employment levels are the best that can be achieved in times of prosperity and whether current employment policies will be able to deal with the challenges of the next downturn. To evaluate these questions, the author examines the relative merits of three proposed strategies to improve the employment situation-a reduced workweek, employment subsidies, and a public service job opportunity program-to see if they will meet the challenges of upholding an individual's basic right to job while not stimulating inflation. He finds that a shorter workweek and wage subsidies both have failed to meet one or both of these challenges, but that a public service job opportunity program, such as the "employer of last resort policy," would satisfy both the full employment and noninflationary criteria.
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Bibliographic InfoPaper provided by Levy Economics Institute in its series Economics Working Paper Archive with number wp_258.
Date of creation: Dec 1998
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- L. Randall Wray, 1997.
"Government as Employer of Last Resort: Full Employment without Inflation,"
Economics Working Paper Archive
wp_213, Levy Economics Institute.
- L. Randall Wray, 1998. "Government as Employer of Last Resort: Full Employment Without Inflation," Macroeconomics 9802006, EconWPA.
- Brunello, Giorgio, 1989. "The Employment Effects of Shorter Working Hours: An Application to Japanese Data," Economica, London School of Economics and Political Science, vol. 56(224), pages 473-86, November.
- Georgios Argitis & Stella Michopoulou, 2011.
"Are Full Employment and Social Cohesion Possible Under Financialization?,"
Forum for Social Economics,
Springer, vol. 40(2), pages 139-155, July.
- Georgios Argitis & Stella Michopoulou, 2011. "Are Full Employment and Social Cohesion Possible Under Financialization?," Forum for Social Economics, Taylor & Francis Journals, vol. 40(2), pages 139-155, January.
- Zdravka, Todorova, 2009. "Employer of Last Resort Policy and Feminist Economics: Social Provisioning and Socialization of Investment," MPRA Paper 16240, University Library of Munich, Germany.
- Marc-Andre Pigeon & L. Randall Wray, . "Down and Out in the United States, An Inside Look at the Out of the Labor Force Population," Economics Public Policy Brief Archive ppb_54, Levy Economics Institute.
- Rania Antonopoulos, 2007. "The Right to a Job, the Right Types of Projects: Employment Guarantee Policies from a Gender Perspective," Economics Working Paper Archive wp_516, Levy Economics Institute.
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