Employer of Last Resort in the Framework of Post-Keynesian Theory: The Case of Turkey

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.

Keywords

• devletin nihai işveren rolü
• istihdam garantisi
• sosyal hesaplar matrisi
• işsizlik
• employer of last resort
• job guarantee
• social accounting matrix
• unemployment