Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/225970
Authors: 
Landwehr, Jannik J.
Year of Publication: 
2020
Series/Report no.: 
Working Paper 150/2020
Abstract: 
As a bottom-up approach, a Job Guarantee policy can tackle the issue of unemployment on the macroeconomic, socioeconomic, and individual level in a unique way and promote the social inclusion of the unemployed. This paper aims at analysing the potential obstacles - namely inflationary pressure and financing - of a Job Guarantee policy implementation in the case of Germany. A Job Guarantee's impact on inflation depends on excess production capacities of economic sectors as well as collective wage bargaining structures. In this regard, this paper concludes that under a correct policy design inflationary pressure is no major obstacle. Strengthening workers' bargaining power in Germany through a Job Guarantee policy could even contribute to reaching the inflation target and prevent deflation. However, deficiencies of the European institutional setup and the analogous restrictive fiscal mantra at European and national level limit the political scope for financing a Job Guarantee policy. Notwithstanding, a small to medium size Job Guarantee programme - comprising up to all currently unemployed willing to work - is politically and legally feasible.
Subjects: 
Job Guarantee
Employer-of-Last-Resort
Public Works
Unemployment
Underemployment
Full Employment
Inflation
Fiscal Policy
Debt Brake
JEL: 
E24
E62
H63
J68
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.