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‘Smart’ Employment Policy: The Tradable-Credits Approach to Full-Employment Targeting

Author Du-Yong Kang Date 2016.07.20 Page 67
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 This paper discusses the idea of applying an artificial trading
market approach, commonly used in environmeutal policy, to
employment policy as a means of creating jobs more effectively.
Artificial market approaches, as exemplified by the emission
permits trading system, theoretically represent the most efficient
means of attaining quantitative targets. At the same time, the policies
based on such an approach have a constraint inherent in the
trading market that they, to be effective, need to be implemented
on an ongoing basis for a substantial period of time. Employment
policy seems to be a promising area for the application of artificial
market approaches, since it has an explicit quantitative target ? full
employment ? and since circumstances with under-employment
arise frequently.