Job Guarantee
Modern Monetary Theory
Fiscal Policy
Labor Economics
Universal Basic Income

How to Cite



This paper presents the idea of the Job Guarantee (JG), which is a logical extension of the paradigm of a tax-driven fiat currency. The JG involves the government offering a public purpose-oriented job with a fixed hourly wage and job benefits to anyone willing to work. The JG as a bottom-up approach is locally administered but federally funded. As the analytical lens of MMT reveals, a monetarily sovereign government is always able to provide the spending required. Macroeconomically, the JG works as an automatic countercyclical stabilizer and an excellent tool for aggregated demand management, ensuring the economy is continuously operating at full capacity. On top, the JG uses an employed buffer stock approach as a superior means to maintain price stability. Next to its favourable macroeconomic impacts, the JG offers many social benefits, particularly related to continuous employment, working conditions in the private sector, power relations in the labour market and democracy. While the JG and Universal Basic Income (UBI) are often discussed as comparable, competing policy proposals, the JG addresses more macroeconomic and social issues than the UBI does. This paper concludes that the JG qualifies for being the single most effective policy in order to drive the economy towards continuous full employment and price stability while realizing additional social benefits.


Bell, Stephanie. 2001. “The Role of the State and the Hierarchy of Money.” Cambridge Journal of Economics 25(2):149-63.

Bibow, Jörg. 2013. “Lost at Sea: The Euro Needs a Euro Treasury.” Levy Economics Institute, Working Paper (780).

Boffa, Sonia and Heiner Flassbeck. 2009. “The Unbearable Lightness of Financial Markets.” India Economy Review.

Carroll, Nick. 2007. “Unemployment and Psychological Well‐Being.” Economic Record 83(262):287-302.

Cruz-Hidalgo, Esteban, Dirk H Ehnts and Pavlina R Tcherneva. “Completing the Euro: The Euro Treasury and the Job Guarantee.” REC:100.

Ehnts, Dirk H. 2016. Modern Monetary Theory and European Macroeconomics. Abingdon, Oxon: Routledge.

Ehnts, Dirk H and Maurice Höfgen. 2019. “Modern Monetary Theory: A European Perspective.” real-world economics review 89:75-84.

Eurostat. 2019. “Euro Area Unemployment at 7.5%.” Eurostat.

Flassbeck, Heiner. 2001. “The Exchange Rate: Economic Policy Tool or Market Price?”: United Nations Conference on Trade and Development.

Fullwiler, Scott. 2008. “Modern Central Bank Operations: The General Principles.” Pp. 50-87 in Advances in Endogenous Money Analysis, edited by L.-P. Rochon and S. Rossi. Cheltenham, UK: Edward Elgar Publishing.

Kaboub, Fadhel. 2006. A Roadmap to Full Employment and Price Stability in Developing Countries: The Case of Tunisia. Manuscript: University of Missouri-Kansas City.

Kaboub, Fadhel. 2007. “Employment Guarantee Programs: A Survey of Theories and Policy Experiences.” Economics Working Paper Archive wp_498, Levy Economics Institute.

Kaboub, Fadhel. 2008. “Elements of a Radical Counter-Movement to Neoliberalism: Employment-Led Development.” Review of Radical Political Economics 40(3):220-27.

Kaboub, Fadhel, Mathew Forstater and Michael Kelsay. 2015. “The Cost of Unemployment and the Job Guarantee Alternative in Saudi Arabia.” Policy report 101.

Kelton, Stephanie. 2011. “Limitations of the Government Budget Constraint: Users Vs. Issuers of the Currency.” Panoeconomicus 58(1):57-66.

Kostzer, Daniel. 2008. “Argentina: A Case Study on the Plan Jefes Y Jefas De Hogar Desocupados, or the Employment Road to Economic Recovery.” Working Paper No. 534.

Mitchell, William and Joan Muysken. 2008. Full Employment Abandoned: Shifting Sands and Policy Failures. Cheltenham, UK: Edward Elgar Publishing.

Mitchell, William, L Randall Wray and Martin Watts. 2016. Modern Monetary Theory and Practice: An Introductory Text. CreateSpace Independent Publishing Platform: Centre for Full Employment and Equity.

Mitchell, William and Thomas Fazi. 2017. Reclaiming the State. A Progressive Vision of Sovereignty for a Post-Neoliberal World. London: Pluto Press.

Mitchell, William, L. Randall Wray and Martin Watts. 2019. Macroeconomics. RED GLOBE PRESS.

Mosler, Warren. 1997. “Full Employment and Price Stability.” Journal of Post Keynesian Economics 20(2):167-82.

Mosler, Warren. 1998. “Exchange Rate Policy and Full Employment.” in Presentation, Conference.

Mosler, Warren. 2012. “Soft Currency Economics Ii: The Origin of Modern Monetary Theory.” CreateSpace Independent Publishing Platform.

Murray, Michael and Mathew Forstater. 2013a. The Job Guarantee: Toward True Full Employment. New York: Palgrave.

Murray, Michael and Mathew Forstater. 2013b. Employment Guarantee Schemes: Job Creation and Policy in Developing Countries and Emerging Markets. New York: Palgrave.

Tcherneva, Pavlina R and L Randall Wray. 2005. “Gender and the Job Guarantee: The Impact of Argentina’s Jefes Program on Female Heads of Poor Households.” Available at SSRN 1009594.

Tcherneva, Pavlina R. 2013. “The Job Guarantee: Delivering the Benefits That Basic Income Only Promises–a Response to Guy Standing.” Basic Income Studies 7(2):66-87.

Tcherneva, Pavlina R. 2017. “Unemployment: The Silent Epidemic.” Levy Economics Institute Working Paper 895: 1-26.

Tcherneva, Pavlina R. 2018. “The Job Guarantee: Design, Jobs, and Implementation.” Levy Economics Institute Working Paper 902: 1-66.

Tcherneva, Pavlina R. 2019. “The High Costs of Ubi Are Not Financial: They Are Real.” Eastern Economic Journal 45(2):327-30.

UNCTAD. 2011. “Trade and Development Report.” in United Nations Conference on Trade and Development.

Watts, Martin J and William F Mitchell. 2000. The Costs of Unemployment in Australia. London: SAGE Publications.

Wray, L Randall. 1997. “Government as Employer of Last Resort: Full Employment without Inflation.” Levy Economics Institute Working Paper No. 213

Wray, L Randall and Claudio Sardoni. 2007. “Fixed and Flexible Exchange Rates and Currency Sovereignty.” The Levy Economics Institute’s Working Paper Series.

Wray, L Randall. 2015. Modern Money Theory: A Primer on Macroeconomics for Sovereign Monetary Systems. New York: Palgrave.

Wray, L Randall, Flavia Dantas, Scott Fullwiler, Pavlina R Tcherneva and Stephanie A Kelton. 2018. “Public Service Employment: A Path to Full Employment.” Research Project Report. Annandale-on-Hudson, NY: Levy Economics Institute of Bard College, April.

Young, Cristobal. 2012. “Losing a Job: The Nonpecuniary Cost of Unemployment in the United States.” Social Forces 91(2):609-34.

Manuscript authors are responsible for obtaining copyright permissions for any copyrighted materials included within manuscripts. The authors must provide permission letters, when appropriate, to the Society Register Editors.

In addition, all published papers in Society Register are published under a Creative Commons Attribution-NonCommercial 4.0 Unported License.

1.1 The Author hereby warrants that he/she is the owner of all the copyright and other intellectual property rights in the Work and that, within the scope of the present Agreement, the paper does not infringe the  legal rights of another person. The owner of the copyright work also warrants that he/she is the sole and original creator thereof and that is not bound by any legal constraints in regard to the use or sale of the work.

1.2. The Publisher warrants that is the owner of the PRESSto platform for open access journals, hereinafter referred to as the PRESSto Platform.

2. The Author grants the Publisher non-exclusive and free of charge license to unlimited use worldwide over an unspecified period of time in the following areas of exploitation:

2.1. production of multiple copies of the Work produced according to the specific application of a given technology, including  printing, reproduction of graphics through mechanical or electrical means (reprography) and digital technology;

2.2. marketing authorisation, loan or lease of the original or copies thereof;

2.3. public performance, public performance in the broadcast, video screening, media enhancements as well as broadcasting and rebroadcasting,  made available to the public in such a way that members of the public may access the Work from a place and at a time individually chosen by them;

2.4. inclusion of the Work into a collective work (i.e. with a number of contributions);

2.5. inclusion of the Work in the electronic version to be offered on an electronic platform, or any other conceivable introduction of the Work in its electronic version to the Internet;

2.6. dissemination of electronic versions of  the Work in its electronic version online, in a collective work or independently;

2.7. making the Work in the electronic version available to the public in such a way that members of the public may access the Work from a place and at a time individually chosen by them, in particular by making it accessible via the Internet, Intranet, Extranet;

2.8. making the Work available according to appropriate license pattern CC BY-NC 4.0 as well as another language version of this license or any later version published by Creative Commons.

3. The Author grants the Publisher permission to reproduce a single copy (print or download) and royalty-free use and disposal of rights to compilations of the Work and these compilations.

4. The  Author grants the Publisher permission to send metadata files related to the Work, including to commercial and non-commercial journal-indexing databases.

5. The Author represents that, on the basis of the license granted in the present Agreement, the Publisher is entitled and obliged to:

5.1.  allow third parties to obtain further licenses (sublicenses) to the Work and to other materials, including derivatives thereof or compilations made, based on or including the Work, whereas the provisions of such sub-licenses will be the same as with the Attribution 4.0 International (CC BY-NC 4.0) Creative Commons sub-license or another language version of this license, or any later version of this license published by Creative Commons;

5.2. make the Work available to the public in such a way that members of the public may access the Work from a place and at a time individually chosen by them, without any technological constraints;

5.3. appropriately inform members of the public to whom the Work is to be made available about sublicenses in such a way as to ensure that all parties are properly informed (appropriate informing messages).

6. Because of the royalty-free provision of services of the Author (resulting from the scope of obligations stipulated in the present Agreement), the Author shall not be entitled to any author’s fee due and payable on the part of the Publisher (no fee or royalty is payable by the Publisher to the Author).

7.1. In the case of third party claims or actions for indemnity against the Publisher owing to any infractions related to any form of infringement of intellectual property rights protection, including copyright infringements, the Author is obliged to take all possible measures necessary to protect against these claims and, when as a result of legal action, the Publisher, or any third party licensed by the Publisher to use the Work, will have to abandon using the Work in its entirety or in part or, following a court ruling in a legal challenge, to pay damages to a third party, whatever the legal basis

7.2. The Author will immediately inform the Publisher about any damage claims related to intellectual property infringements, including the author’s proprietary rights pertaining to a copyrighted work, filed against the Author. of liability, the Author is obliged to redress the damage resulting from claims made by third party, including costs and expenditures incurred in the process.

7.3. To all matters not settled herein provisions of the Polish Civil Code and the Polish Copyright and Related Rights Act shall apply. 


Download data is not yet available.