For a couple of years Ralph Musgrave has been arguing that the Job Guarantee provides jobs that are essentially the same as those in the private sector with the same kinds of inflationary effects. For this reason, he has been treating the JG a simple job subsidy with a training component, similar to various active labor market policies (ALMP) around the world.
By contrast, much of the JG literature has focused on the differences between the JG and conventional public or private sector employment and on the program’s countercyclical effects (here is the latest model that compares the inflationary and distributional effects of different fiscal policies, including the JG/ELR). All of these arguments are familiar to readers of this blog and will not be rehashed here. We have also described various types of JG to deal with a number of implementation issues. Most recently, I proposed a model that utilizes the social entrepreneurial and non-profit sectors.
Read the rest at New Economic PerspectivesThe Job Guarantee is Not Workfare
By Pavlina R. Tcherneva