Is Argentinas Jefes de Hogar Program an Employer of Last Resort?
Working Paper No. 43 August 2005 Pavlina R. Tcherneva (info) and L. Randall Wray (info) Is Jefes de Hogar an Employer of Last Resort program? An assessment of Argentinas ability to deliver the promise of full employment and price stability by Pavlina R. Tcherneva and L. Randall Wray[1] ABSTRACT In this paper we will describe what has been called the “employer of last resort” (ELR) proposal as a policy to achieve true full employment without inflation. We will answer three main concerns about the program: 1) How can the government afford to hire all those who might want to work?, 2) Won’t full employment cause inflation?, and 3) What will all those workers do? In building the case for ELR we show that the purpose of the program is to supplement but not to replace alternative employment, such as that provided by private firms or other government programs. By design, ELR offers employment to those who are ready, willing, and able to work, but who have not been able to find jobs. Our claim
