The Cost of Job Guarantee in the United States
From the 1960s, Minsky argued that implementing a decentralized job-guarantee policy funded by the federal government was a relevant way to promote full employment and price stability, and to alleviate poverty. This policy aims at providing a job to anybody willing to work and to pay a living wage. Over the past fifteen years, this idea has been subject to greater scrutiny and this paper contributes to that literature by estimating the gross cost of implementing a job-guarantee policy (JG). In order to calculate this cost, the paper uses the data available from the 1930s work programs. These work programs provide some interesting insights because enough data are available to determine the cost of JG under widely different rates of unemployment. The paper shows that JG would have been quite expensive during the early part of the 1930s when the unemployment rate was at 20 percent or more. Once unemployment receded to a usual level, the gross cost of JG would have been low.
When requesting a correction, please mention this item's handle: RePEc:sae:reorpe:v:46:y:2014:i:4:p:517-535. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.