The Job Guarantee: Toward True Full Employment

194 Pages·2013·1.216 MB·English

by  Michael J. Murray, Mathew Forstater (eds.)

The Job Guarantee
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The Job Guarantee
Toward True Full Employment
E
DITED BY
M J. M
ICHAEL URRAY
M F
AND ATHEW ORSTATER
THE JOB GUARANTEE
Copyright © Michael J. Murray and Mathew Forstater, 2013.
Softcover reprint of the hardcover 1st edition 2013 978-1-137-28609-3
All rights reserved.
First published in 2013 by
PALGRAVE MACMILLAN®
in the United States— a division of St. Martin’s Press LLC,
175 Fifth Avenue, New York, NY 10010.
Where this book is distributed in the UK, Europe and the rest of the world,
this is by Palgrave Macmillan, a division of Macmillan Publishers Limited,
registered in England, company number 785998, of Houndmills,
Basingstoke, Hampshire RG21 6XS.
Palgrave Macmillan is the global academic imprint of the above companies
and has companies and representatives throughout the world.
Palgrave® and Macmillan® are registered trademarks in the United States,
the United Kingdom, Europe and other countries.
ISBN 978-1-137-28610-9 ISBN 978-1-137-29799-0 (eBook)
DOI10.1057/9781137297990
Library of Congress Cataloging-in-Publication Data
The job guarantee : toward true full employment / edited by Michael J.
Murray and Mathew Forstater.
p. cm.
1. Full employment policies. 2. Manpower policy. 3. Employment
(Economic theory) 4. Unemployment. I. Murray, Michael J. II. Forstater,
Mathew, 1961–
HD5713.J63 2013
331.12(cid:2)0424—dc23 2012028026
A catalogue record of the book is available from the British Library.
Design by Newgen Imaging Systems (P) Ltd., Chennai, India.
First edition: January 2013
10 9 8 7 6 5 4 3 2 1
Contents
List of Tables vii
List of Figures ix
Introduction 1
Michael J. Murray and Mathew Forstater
1. Rising Job Complexity and the Need for Government
Guaranteed Work and Training 5
Jon D. Wisman and Nicholas Reksten
2. Wage Policies and Funding Strategies for Job
Guarantee Programs 39
Philip Harvey
3. The Low Cost of Full Employment in the United States 59
Fadhel Kaboub
4. The Costs and Benefits of a Job Guarantee: Estimates from
a Multicountry Econometric Model 73
Scott T. Fullwiler
5. Effective Demand, Technological Change, and the
Job Guarantee Program 95
Michael J. Murray
6. Transformational Growth, Endogenous Demand, and a
Developmental ELR Program 125
Edward J. Nell and George Argyrous
7. The Euro Crisis and the Job Guarantee: A Proposal
for Ireland 161
L. Randall Wray
Notes on Contributors 179
Index 183
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Tables
3.1 Three-year ELR plan 67
5.1 Hypothetical base-model input output table; initial period 100
5.2 Base-model coefficient matrix; initial period 101
5.3 Base-model distribution of the social surplus; initial period 102
5.4 Input-output base-model simulations; periods one–seven 107
5.5 Hypothetical ELR-model input output table; initial period 114
5.6 Hypothetical ELR-model input output table; period = 1 116
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Figures
1.1 Total college enrollment as percentage of population
18–25 years old, 1869–2009 12
1.2 Public and private portions of student enrollment in
higher education, 1963–2009 13
1.3 Accounting for changes in wage inequality: the role
of globalization, technology, and labor market policies
and institutions (average annual percentage changes) 14
1.4 Expenditures on education by type of institution as
a percentage of GDP, 1929–2009 15
1.5 Public primary and secondary education expenditures
per pupil in constant 1982–1984 dollars, 1869–1996 15
1.6 Total cost of undergraduate education by type of
institution in constant 2008–2009 dollars, 1965–2009 16
1.7 Gap between average undergraduate costs of college
attendance and student aid per full-time equivalent
student per year, constant 2008–2009 dollars 17
1.8 Human capital tree 18
1.9 Percentage of persons 25 and over having completed
high school or college, 1910–2010 20
1.10 Average duration of unemployment, United States,
1947–2011 22
1.11 Average duration of unemployment, 1948–2007 around
trend line 23
2.1 US unemployment rate 1933–1940 42
3.1 US GDP with and without the ELR program ($ trillions) 66
4.1 Job guarantee employees (millions) 80
4.2 Annualized nominal GDP for JG program less base
data ($ billions) 81
4.3 Annualized real GDP for JG program less base
data ($ billions) 81
4.4 Quarterly annualized inflation for JG program less base data 82