Institutional Adjustment Planning for Full Employment

Kaboub, Fadhel

doi:10.1080/00213624.2007.11507038

“…56 The analysis begins by recognizing that wants and institutions are situational factors, while continuing factors are the functions that must be carried out, so that the life process can continue. Instrumental value theory posits that structures must be adjusted to permit the optimal 54 See also Ülgen (2014), Henry (2012), and Kaboub (2007). Note, as Kaboub (2007) argues, that the creation of an ELR program is an example of institutional adjustment, putting in place an institutional arrangement that ensures there is a job for anyone seeking work, at the program wage.…”

Section: Technological Determination or Financial Feasibility?mentioning

confidence: 96%

“…Instrumental value theory posits that structures must be adjusted to permit the optimal 54 See also Ülgen (2014), Henry (2012), and Kaboub (2007). Note, as Kaboub (2007) argues, that the creation of an ELR program is an example of institutional adjustment, putting in place an institutional arrangement that ensures there is a job for anyone seeking work, at the program wage. 55 An example of an employment policy that must fail is one that focuses on changing the character of the unemployed, rather than one that creates institutions to ensure the unemployed can obtain jobs for which they are ready.…”

Section: Technological Determination or Financial Feasibility?mentioning

confidence: 96%

“…Neale has little to say about the government's role, and denies that there can be a "nature" of money. His book has no citations to the early chartalist literature, to Keynes, or to later developments, such as Lerner's "money as a creature of the state" or "functional finance" approach, nor to work by Grierson and others who linked money's origins to wergild debts (see Wray 1990Wray , 1998aWray , 2012, for discussions of the chartalist, state money, or the MMT approaches; also see Forstater 1998asee Forstater , 1998bsee Forstater , 2005Kaboub 2007;and Fullwiler 2005, for discussion of the functional finance approach. A collection of chapters on the topic can be found in Reinventing Functional Finance: Transformational Growth and Full Employment, edited by Edward Nell and Mat Forstater.…”

Section: Foster's Approach and Heterodox Money Theorymentioning

confidence: 97%

See 1 more Smart Citation

"The Reality of the Present and the Challenge of the Future": J. Fagg Foster for the Twenty-First Century

Wray

¹

2016

Journal of Economic Issues

2

0

View full text Add to dashboard Cite

“…Laws can also be introduced to make it mandatory for at-risk industries to alert ELR authorities of imminent closures so that ELR jobs can be planned accordingly (Kaboub 2006(Kaboub , 2007.…”

Section: Challenges Facing Elrmentioning

confidence: 99%

Employment Guarantee Programs: A Survey of Theories and Policy Experiences

Kaboub

¹

2007

Self Cite

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in The Levy Economics Institute Working Paper Collection presents research in progress byLevy Institute scholars and conference participants. The purpose of the series is to disseminate ideas to and elicit comments from academics and professionals.The Levy Economics Institute of Bard College, founded in 1986, is a nonprofit, nonpartisan, independently funded research organization devoted to public service. Through scholarship and economic research it generates viable, effective public policy responses to important economic problems that profoundly affect the quality of life in the United States and abroad.

show abstract

“…A gradualist approach is the key to the overall success of the program. The most important reason for using a gradualist strategy is the process of institutional adjustment (Kaboub 2006(Kaboub , 2007. We must allow economic agents to adjust their behavior and their expectations to new economic conditions, and, more specifically, to the presence of the ELR administration as a major institutional actor in the economy.…”

Section: Elr Cost Estimation For Tunisiamentioning

confidence: 99%

ELR-Led Economic Development: A Plan for Tunisia

Kaboub

¹

2007

Self Cite

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in ABSTRACTThis paper establishes the financial feasibility of an employer of last resort (ELR) program in a small developing country like Tunisia, and argues that an ELR-led economic development policy is vastly superior to the traditional import substitution industrialization (ISI), export-led, and FDI-led development models, all of which Tunisia has adopted without much success in reducing unemployment. Despite outperforming its peers in terms of macroeconomic stability, Tunisia's official unemployment rate still hovers around 15 percent, with two-thirds of first-time job seekers having university degrees. The paper demonstrates that a well-targeted ELR program can be gradually introduced over a six-year period to remedy this problem by reclaiming sovereignty over the country's domestic monetary and fiscal policies under a floating exchange rate regime. The estimated ELR net wage bill would be around 2.7 percent of GDP; however, spending by ELR workers would offset program costs, and the net effect on GDP would be an increase of about 3.6 percent. The paper concludes by proposing a set of complementary policy reforms that must accompany an ELR program to ensure long-term growth sustainability along with full employment and price stability.

show abstract

Institutional Adjustment Planning for Full Employment

Cited by 26 publications

References 17 publications

"The Reality of the Present and the Challenge of the Future": J. Fagg Foster for the Twenty-First Century

"The Reality of the Present and the Challenge of the Future": J. Fagg Foster for the Twenty-First Century

Employment Guarantee Programs: A Survey of Theories and Policy Experiences

ELR-Led Economic Development: A Plan for Tunisia

Contact Info

Product

Resources

About