Internalizing the Social Value of Employment : A New Approach to Employment Policy in a Globalized Economy
Most countries view full employment as one of the chief goals of economic policy.
The presumption behind this view is that policies can affect private employment.
This idea, however, has a relatively short history. Nicholas Kaldor, the 20th century
economist, observed that the idea of full employment as one of a government’s
chief respon-sibilities can be traced back only as far as the post- Second World
War era, when the economic principles of John Maynard Keynes entered mainstream
discussion. This is not to say that governments were unconcerned with employment
issues before that, but prior to the emergence of Keynesian economics, few argued
that governments had much of a role to play in increasing private sector employment.