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

Pavlina Tcherneva

Economics Policy Note Archive from Levy Economics Institute

Abstract: 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.

New Economics Papers: this item is included in nep-lab and nep-pke
Date: 2012-03
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