The role of government as employer of last resort in Post-Keynesian framework: The case of Turkey

This study discusses Modern Money Theory and the role of Employer of Last Resort. From this point of view, public employment examples applied in various countries in the world are explained in detail. For today's economies, where instability and unemployment are norms, it is now becoming compulsory for the state to produce policies aimed at unemployment and to create jobs for those who can not find jobs. It will also help to reduce unemployment in capitalist economies, according to those who propose that the state is Employer of Last Resort, as well as social problems that arise with unemployment at the same time. In this thesis, according to the Government as Employer of Last Resort in Turkey, the simulations were established for different scenarios. In the simulations, four different scenarios were considered and analyzed by the Social accounting matrices (SAM) method for the year 2014. In four different scenarios by income groups, by gender and age-based discrimination were made. The lowest income households, young unemployed and female unemployed were targeted. As a result of the scenario analysis, a favorable change was observed in the income of households and demand according to the shock created in the public administration sector. Keywords: Employment, Active Labour Market Policies, Employer of Last Resort, Social Accounting Matrices