Employer of Last Resort in the Framework of Post-Keynesian Theory: The Case of Turkey
Year 2022,
Volume: 37 Issue: 3, 810 - 827, 26.07.2022
Nihan Öksüz Narinç
Sayım Işık
Abstract
In today's economies, where insecurity and unemployment are the norm, it has become critical for the government to develop policies aimed at reducing unemployment and creating jobs for people who want to work but can't find work. According to those who advocate for the state to be the Employer of Last Resort (ELR) this will help reduce unemployment in mainstream approaches while also covering the social issues that arise because of unemployment. The purpose of this research is to investigate the impact of the government providing employment as the ELR in Turkey. Input-output and social accounting matrix was used to look at changes in demand and household incomes in this case, after a shock to low-income people and women at the minimum income level was caused by the state in the Public Administration sector. The study's findings indicate that the ELR program is applicable in Turkey. It also demonstrates that income multipliers for women operate on both the demand and supply sides.
Supporting Institution
No financial support has been received from any institution or organization.
Project Number
The article is not produced from any project.
Thanks
We would like to thank the editorial board of the Izmir Journal of Economics and the reviewers who will evaluate the article.
References
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- Antonopoulos , R. & Kim, K.(2008). South Africa Scaling Up The Expanded Public Works Programme: A Social Sector Intervention Proposal.The Levy Economics Institute of Bard College
- Azam, M., Ferre, C. & Ajwad, M. I.(2012). Did Latvia's Public Works Program Mitigate the Impact of the2008-2010 Crisis? . World Bank Policy Research Working Paper No. 6144.
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- Bonoli, G. (2010). The Political Economy of Active Labour Market Policy. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1561186
- Defourny, J., & Thorbecke, E. (1984). Structural Path Analysis and Multiplier Decomposition within a Social Accounting Matrix Framework. The Economic Journal, 94(373), 111. https://doi.org/10.2307/2232220
- Erten, H. (2009). Türkiye IçinSektörel Sosyal Hesaplar Matrisi Olusturma Yöntemi ve Istihdam Üzerine Bir Hesaplanabilir Genel Denge Modeli Uygulamasi. Ankara: DPT.
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- Fostater, M. (2006). Tax-Driven Money: Additional Evidence from the History of Economic Thought, Economic History and Economic Policy. In M. Setterfield (Ed.), Complexity, Endogenous Money and Macroeconomic Theory (pp. 202–220). Edward Elgar Publishing.
- Fullwiler, S. T. (2003). Further simulations of an employer of last resort policy. Center for Full Employment and Price Stability, 27.
- Gilligan, D. O., Hoddinott, J., & Taffesse, A. S. (2009). The Impact of Ethiopia’s Productive Safety Net Programme and its Linkages. Journal of Development Studies, 45(10), 1684–1706. https://doi.org/10.1080/00220380902935907
- Hieda, T. (2011). The Politics of Active Labor Market Policy in Post-Industrial Democracies: Divergent Policy Responses to New Social Risks among Pro-Welfare Parties Ver.1.2. Undefined. https://www.semanticscholar.org/paper/The-Politics-of-Active-Labor-Market-Policy-in-to-Hieda/1295e094214ef5a765f8783aaec38f3390bbc9b4
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- Juniper, J.& William, M. (2005) .Towards a SpatialKeynesian Macroeconomics, CofFEE, Working Paper No: 05-09.
- Kaboub, F. (2013). The Fiscal Cliff Mythology and the Full Employment Alternative. Review of Radical Political Economics, 45(3), 305–314. https://doi.org/10.1177/0486613413487162
- Kelton, S. (2020). Deficit Myth : modern monetary theory and the birth of the people’s economy. Public Affairs.
- Koohi-Kamali, F. (2010). Public Works and social Protection. https://cadmus.eui.eu/bitstream/handle/1814/40079/KoohiKamali_PublicWorks.pdf?sequence=1&isAllowed=y
- Kostzer, D. (2008). Argentina: A Case Study on the Plan Jefes y Jefas deHogar Desocupados, or the Employment Road to Economic Recovery. WorkingPaper No.534, The Levy Economics Institute of Bard College.
- Lee, J. (2001). Income Assistance and Employment Creation through Public Works in Korea. In F. Park, Y. Park, G. Betcherman, & A. Dar (Eds.), Labor market reforms in Korea : policy options for the future (pp. 175–195). The World Bank and Korea Labor Institute.
- Majewski, R.,& E. Nell. (2000). “Maintaining Full Employment: Simulating an Employer of Last Resort Program.” Seminar Paper N°6, Center for Full Employment and Price Stability (CFEPS). http://www.cfeps.org/pubs/sp-pdf/SP6-
- Mario, A. (2020). Simulating an employer of last resort program for Argentina (2003–2015). Journal of Post Keynesian Economics, 44(2), 208–238. https://doi.org/10.1080/01603477.2020.1734467
- Mastromatteo , G.& Esposito , L.(2014). “Banking on ELR. How the ideas of Minsky can tackle unemployment” 55thAnnual Conference of the Società Italiana degli Economisti. Trento.
- McCord,A. (2008), 'Recognising Heterogeneity: AProposed Typology for Public Works Programmes', Southern Africa Labour andDevelopment Research Unit (SALDRU), Working Paper no. 26, SALDRU, School ofEconomics, University of Cape Town, South Africa, December.
- Minsky, H. P. (2008). Stabilizing an unstable economy. Mcgraw-Hill Professional.
- Mosler, W. (1997). Full Employment and Price Stability. Journal of Post Keynesian Economics, 20(2), 167–182. https://doi.org/10.1080/01603477.1997.11490146
- Mosler, W. & Mathew,F. (1999). A General Framework for theAnalysis of Currencies and Commodities, Full Employment and Price Stability ina Global Economy içinde P. Davidson and J.Kregel (ed.), Edward Elgar.
- Murray, M. J. (2017). Public Policy for Working People. In M. J. Murray & M. Forstater (Eds.), The Job Guarantee and Modern Money Theory: Realizing Keynes’s Labor Standard. Palgrave Macmillan.
- Papadimitriou, D.B. (2008). PromotingEquality Through an Employment of Last Resort Policy. Working Paper No.545, The Levy Economics Institute of Bard College.
- Pyatt, G., & Round, J. I. (1979). Accounting and Fixed Price Multipliers in a Social Accounting Matrix Framework. The Economic Journal, 89(356), 850. https://doi.org/10.2307/2231503
- Ronconi, L., Sanguinetti, J., & Fachelli Oliva, S. (2006). Poverty and Employability Effects of Workfare Programs in Argentina. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.908566
- Round, J. (2003). Constructing SAMs for Development Policy Analysis: Lessons Learned and Challenges Ahead. Economic Systems Research, 15(2), 161–183. https://doi.org/10.1080/0953531032000091153
- Subbarao , K., Ninno, C., Andrews,C. And Rodriguez Alas, C.P. (2012). Public works as a safety net : design, evidence, and implementation.Washington D.C.: The Worldbank.
- Tcherneva, P. R. (2013). “BeyondFull Employment: What Argentina's Plan Jefes Can Teach Us about the Employer ofLast Resort”. Employment Guarantee Schemes içinde, yazan Michael J.Murray ve Mathew Forstater, 79-102. New York: Palgrave Macmillan.
- Túñez Area, N. (2020). A Post Keynesian Review of Modern Monetary Theory. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3573406
- TURKSTAT. (2014a). Address-Based Population Registration System http://www.tuik.gov.tr/PreIstatistikTablo.do?istab_id=2430. (ErisimTarihi: 1 Mayis 2017)
- TURKSTAT. (2014b). SILC-Survey of Income and Living Conditions. TURKSTAT.
- Wray, L. R. (1998). Understanding modern money : the key to full employment and price stability. Edward Elgar.
- Wray, L. R. (2000). The Employer of Last Resort Approach to Full Employment. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1010336
- Wray, L. R. (2009). The Socialand Economic Importance of Full Employment. Working Paper No. 560, The LevyEconomics Institute of Bard College.
- Wray, L. R. (2016). Modern Money Theory: A Primer on Macroeconomics for Sovereign Monetary Systems. Palgrave Macmillan.
- Zepeda, E., Alarcon, D., Mcdonald, S., Sapkota, C., Panda, M., & Kumar, G. (2013). Guaranteeing Jobs for the Rural Poor: An Assessment of India’s MGNREGA public works programme. In Social Protection, Growth and Employment: Evidence from India, Kenya, Malawi, Mexico, Peru and TajikistaN (pp. 235–256.). United Nations Development Programme.
Post-Keynesyen Teori Çerçevesinde Devletin Nihai İşveren Olma Rolü: Türkiye Örneği
Year 2022,
Volume: 37 Issue: 3, 810 - 827, 26.07.2022
Nihan Öksüz Narinç
Sayım Işık
Abstract
İstikrarsızlığın ve işsizliğin bir norm olduğu günümüz ekonomileri için devletin işsizliği hedef alan politikalar üretmesi ve çalışmak isteyip iş bulamayan kimseler iş yaratması artık zorunlu bir hal almıştır. Devletin nihai işveren olması (DNİR) önerisini sunanlara göre anaakım yaklaşımlarda işsizliğin azaltılmasına yardımcı olacak aynı zamanda işsizlikle beraber ortaya çıkan sosyal sorunları da kapsayacaktır. Bu çalışmanın amacı, Türkiye’de devletin nihai işveren olarak istihdam sağlamasının etkisini araştırmaktır. Bu bağlamda Girdi Çıktı ve Sosyal Hesaplar Matrisi kullanılarak, düşük gelirli bireyler ile kadınlara devlet tarafından Kamu yönetimi sektöründe yaratılan asgari gelir düzeyinde bir şokun talepte ve hanehalklarının gelirlerindeki değişim gözlemlenmiştir. Çalışmanın bulguları Türkiye’de ELR programının uygulanabilir olduğunu göstermektedir. Ayrıca kadınlar için de gelir çarpanlarının hem talep hem arz yanlı çalıştığını göstermektedir.
Project Number
The article is not produced from any project.
References
- Antonopoulos , R., Adam S., Kim, K., Masterson, T. & Papadimitriou, D.B. (2014)., Responding to the Unemployment Challenge: A Job Guarantee Proposal for Greece. Research Project Report, The Levy Economics Institute of Bard College.
- Antonopoulos , R. & Kim, K.(2008). South Africa Scaling Up The Expanded Public Works Programme: A Social Sector Intervention Proposal.The Levy Economics Institute of Bard College
- Azam, M., Ferre, C. & Ajwad, M. I.(2012). Did Latvia's Public Works Program Mitigate the Impact of the2008-2010 Crisis? . World Bank Policy Research Working Paper No. 6144.
- Berg, E., Bhattacharyya, S., Rajasekhar, D., & Manjula, R. (2018). Can public works increase equilibrium wages? Evidence from India’s National Rural Employment Guarantee. World Development, 103, 239–254. https://doi.org/10.1016/j.worlddev.2017.10.027
- Bonoli, G. (2010). The Political Economy of Active Labour Market Policy. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1561186
- Defourny, J., & Thorbecke, E. (1984). Structural Path Analysis and Multiplier Decomposition within a Social Accounting Matrix Framework. The Economic Journal, 94(373), 111. https://doi.org/10.2307/2232220
- Erten, H. (2009). Türkiye IçinSektörel Sosyal Hesaplar Matrisi Olusturma Yöntemi ve Istihdam Üzerine Bir Hesaplanabilir Genel Denge Modeli Uygulamasi. Ankara: DPT.
- Forstater, M. (2013). «The JobGuarantee and Municipal Confederalism: Exploring the National and Local Levelsof Program Operation.» Employment Guarantee Schemes içinde, yazan MichaelJ. Murray ve Mathew Forstater, 145-155. New York: Palgrave Macmillan.
- Fostater, M. (2006). Tax-Driven Money: Additional Evidence from the History of Economic Thought, Economic History and Economic Policy. In M. Setterfield (Ed.), Complexity, Endogenous Money and Macroeconomic Theory (pp. 202–220). Edward Elgar Publishing.
- Fullwiler, S. T. (2003). Further simulations of an employer of last resort policy. Center for Full Employment and Price Stability, 27.
- Gilligan, D. O., Hoddinott, J., & Taffesse, A. S. (2009). The Impact of Ethiopia’s Productive Safety Net Programme and its Linkages. Journal of Development Studies, 45(10), 1684–1706. https://doi.org/10.1080/00220380902935907
- Hieda, T. (2011). The Politics of Active Labor Market Policy in Post-Industrial Democracies: Divergent Policy Responses to New Social Risks among Pro-Welfare Parties Ver.1.2. Undefined. https://www.semanticscholar.org/paper/The-Politics-of-Active-Labor-Market-Policy-in-to-Hieda/1295e094214ef5a765f8783aaec38f3390bbc9b4
- Isik S.ve Öksüz Narinç , N. (2016) "Yoksullukve Istihdama Post-Keynesyen Yaklasim: Devletin Nihai Isveren Rolü", Post-Keynesyen Yaklasim AlternatifParasal Iktisat içerisinde, ed. Isik S., Cin M. F., Palme Yayin Dagitim, Ankara,ss.327-362
- Juniper, J.& William, M. (2005) .Towards a SpatialKeynesian Macroeconomics, CofFEE, Working Paper No: 05-09.
- Kaboub, F. (2013). The Fiscal Cliff Mythology and the Full Employment Alternative. Review of Radical Political Economics, 45(3), 305–314. https://doi.org/10.1177/0486613413487162
- Kelton, S. (2020). Deficit Myth : modern monetary theory and the birth of the people’s economy. Public Affairs.
- Koohi-Kamali, F. (2010). Public Works and social Protection. https://cadmus.eui.eu/bitstream/handle/1814/40079/KoohiKamali_PublicWorks.pdf?sequence=1&isAllowed=y
- Kostzer, D. (2008). Argentina: A Case Study on the Plan Jefes y Jefas deHogar Desocupados, or the Employment Road to Economic Recovery. WorkingPaper No.534, The Levy Economics Institute of Bard College.
- Lee, J. (2001). Income Assistance and Employment Creation through Public Works in Korea. In F. Park, Y. Park, G. Betcherman, & A. Dar (Eds.), Labor market reforms in Korea : policy options for the future (pp. 175–195). The World Bank and Korea Labor Institute.
- Majewski, R.,& E. Nell. (2000). “Maintaining Full Employment: Simulating an Employer of Last Resort Program.” Seminar Paper N°6, Center for Full Employment and Price Stability (CFEPS). http://www.cfeps.org/pubs/sp-pdf/SP6-
- Mario, A. (2020). Simulating an employer of last resort program for Argentina (2003–2015). Journal of Post Keynesian Economics, 44(2), 208–238. https://doi.org/10.1080/01603477.2020.1734467
- Mastromatteo , G.& Esposito , L.(2014). “Banking on ELR. How the ideas of Minsky can tackle unemployment” 55thAnnual Conference of the Società Italiana degli Economisti. Trento.
- McCord,A. (2008), 'Recognising Heterogeneity: AProposed Typology for Public Works Programmes', Southern Africa Labour andDevelopment Research Unit (SALDRU), Working Paper no. 26, SALDRU, School ofEconomics, University of Cape Town, South Africa, December.
- Minsky, H. P. (2008). Stabilizing an unstable economy. Mcgraw-Hill Professional.
- Mosler, W. (1997). Full Employment and Price Stability. Journal of Post Keynesian Economics, 20(2), 167–182. https://doi.org/10.1080/01603477.1997.11490146
- Mosler, W. & Mathew,F. (1999). A General Framework for theAnalysis of Currencies and Commodities, Full Employment and Price Stability ina Global Economy içinde P. Davidson and J.Kregel (ed.), Edward Elgar.
- Murray, M. J. (2017). Public Policy for Working People. In M. J. Murray & M. Forstater (Eds.), The Job Guarantee and Modern Money Theory: Realizing Keynes’s Labor Standard. Palgrave Macmillan.
- Papadimitriou, D.B. (2008). PromotingEquality Through an Employment of Last Resort Policy. Working Paper No.545, The Levy Economics Institute of Bard College.
- Pyatt, G., & Round, J. I. (1979). Accounting and Fixed Price Multipliers in a Social Accounting Matrix Framework. The Economic Journal, 89(356), 850. https://doi.org/10.2307/2231503
- Ronconi, L., Sanguinetti, J., & Fachelli Oliva, S. (2006). Poverty and Employability Effects of Workfare Programs in Argentina. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.908566
- Round, J. (2003). Constructing SAMs for Development Policy Analysis: Lessons Learned and Challenges Ahead. Economic Systems Research, 15(2), 161–183. https://doi.org/10.1080/0953531032000091153
- Subbarao , K., Ninno, C., Andrews,C. And Rodriguez Alas, C.P. (2012). Public works as a safety net : design, evidence, and implementation.Washington D.C.: The Worldbank.
- Tcherneva, P. R. (2013). “BeyondFull Employment: What Argentina's Plan Jefes Can Teach Us about the Employer ofLast Resort”. Employment Guarantee Schemes içinde, yazan Michael J.Murray ve Mathew Forstater, 79-102. New York: Palgrave Macmillan.
- Túñez Area, N. (2020). A Post Keynesian Review of Modern Monetary Theory. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3573406
- TURKSTAT. (2014a). Address-Based Population Registration System http://www.tuik.gov.tr/PreIstatistikTablo.do?istab_id=2430. (ErisimTarihi: 1 Mayis 2017)
- TURKSTAT. (2014b). SILC-Survey of Income and Living Conditions. TURKSTAT.
- Wray, L. R. (1998). Understanding modern money : the key to full employment and price stability. Edward Elgar.
- Wray, L. R. (2000). The Employer of Last Resort Approach to Full Employment. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1010336
- Wray, L. R. (2009). The Socialand Economic Importance of Full Employment. Working Paper No. 560, The LevyEconomics Institute of Bard College.
- Wray, L. R. (2016). Modern Money Theory: A Primer on Macroeconomics for Sovereign Monetary Systems. Palgrave Macmillan.
- Zepeda, E., Alarcon, D., Mcdonald, S., Sapkota, C., Panda, M., & Kumar, G. (2013). Guaranteeing Jobs for the Rural Poor: An Assessment of India’s MGNREGA public works programme. In Social Protection, Growth and Employment: Evidence from India, Kenya, Malawi, Mexico, Peru and TajikistaN (pp. 235–256.). United Nations Development Programme.