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A Case for Public Sector Job Creation Schemes? Not Really

Published online by Cambridge University Press:  01 January 2023

Judith Sloan  and
Mark Wooden
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Extract

In a recent article appearing in this journal, Burgess (1992) argues the case for the immediate introduction of a public sector job creation scheme. He claims that on “both efficiency and equity grounds there is a strong case for public sector job creation schemes (PSJCS)” (p. 116). In this short note, we show that it is extremely unlikely that PSJCS can promote any substantial net job creation which will be sustained beyond the short-term. Moreover, we argue that such schemes typically promote less efficient outcomes. In effect, the case for PSJCS boils down to the equity effects. However, even here the case remains relatively weak given there are considerable doubts whether PSJCS actually impart valuable skills to participants or enhance their employment prospects.

Type
Research Article
Information
The Economic and Labour Relations Review , Volume 4 , Issue 2 , December 1993 , pp. 328 - 332
Copyright
Copyright © The Author(s) 1993

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References

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