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Full Employment through Social Entrepreneurship: The Nonprofit Model for Implementing a Job Guarantee

  • Pavlina R. Tcherneva

The conventional approach of fiscal policy is to create jobs by boosting private investment and growth. This approach is backward, says Research Associate Pavlina R. Tcherneva. Policy must begin by fixing the unemployment situation because growth is a byproduct of strong employment-not the other way around. Tcherneva proposes a bottom-up approach based on community programs that can be implemented at all phases of the business cycle; that is, a grass-roots job-guarantee program run by the nonprofit sector (with participation by the social entrepreneurial sector) but financed by the government. A job-guarantee program would lead to full employment over the long run and address an outstanding fault of modern market economies.

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File URL: http://www.levyinstitute.org/pubs/pn_12_02.pdf
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Paper provided by Levy Economics Institute in its series Economics Policy Note Archive with number 12-02.

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Date of creation: Mar 2012
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Handle: RePEc:lev:levypn:12-02
Contact details of provider: Web page: http://www.levyinstitute.org

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  1. Pavlina R. Tcherneva, 2012. "Inflationary and Distributional Effects of Alternative Fiscal Policies: An Augmented Minskyan-Kaleckian Model," Economics Working Paper Archive wp_706, Levy Economics Institute.
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