Advances in Economics, Management and Political Sciences
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Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
Series Vol. 59 , 05 January 2024
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Impact of Fiscal Policy on Unemployment
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Abstract
Under the conditions of a modern market economy, the employment issue is a difficult problem that governments around the world must face directly. As one of the most important means for governments to implement macroeconomic regulation and control, it is of greater theoretical and practical significance to give full play to the positive role of fiscal policy in promoting employment. This paper introduces the concept of a flow model of unemployment to study the impact of fiscal policy on the labour market and explores the government's role in easing the contradiction between labour supply and demand and unifying the labour market through fiscal expenditure, taxation, social security and other means. This paper consists of four parts. The first part describes a flow model of unemployment in detail and studies how to reduce the unemployment rate theoretically. The second and third parts tell the different effects of expansionary fiscal policy and tight fiscal policy on the unemployment rate respectively, and how the government chooses the appropriate fiscal policy. The fourth part of the article selects the example of Japan in an economic down cycle to illustrate that the government needs to take into account both short-term and long-term factors, as well as the overall and local economic situation, and choose an appropriate direction or combination of fiscal policies in order to reduce the unemployment rate.
Keywords
Fiscal policy, unemployment rate, expansionary fiscal policy, tight fiscal policy
References
1. Fu, B. (2008). Research on Fiscal Policies to Promote Employment [D]. Northeast University of Finance and Economics.
2. Sun, F. (2004). Research on Expansionary Fiscal Policy [D]. Graduate School of Chinese Academy of Social Sciences.
3. Ye, T. (2019). A study on the promotion of unemployment reduction by fiscal policy in a declining economic cycle[D]. Kunming University of Science and Technology.
4. Yin, Y, & Zhang, K. (2001). Analysing and reflecting on the employment effects of the fiscal policy structure. Journal of Southwest Minzu University (Humanities and Social Sciences Edition), 2001(2):21-22.
5. Huang, Y. (2003). An Empirical Study on the Economic Effects of Fiscal Policy in China [D]. Xiamen University.
6. Zhang, J. (2000). Structural Characteristics of Unemployment and Employment Mechanisms in Post-war Japan[J]. The Japan Society, 2000(4):65-79.
Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
- ISBN (Print)
- 978-1-83558-209-1
- ISBN (Online)
- 978-1-83558-210-7
- Published Date
- 05 January 2024
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/59/20231084
- Copyright
- 05 January 2024
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited