Empirical Economic Bulletin, An Undergraduate Journal


This paper examines the feasibility and impact of an Employer of Last Resort (ELR) program in the United States. ELR could provide the US with a new policy direction in curbing poverty and creating growth. An ELR growth program would be run by the government to employ millions of unemployed and underemployed people in skilled and unskilled positions. This study aims to show that a well developed and administered ELR program could address the important issues facing the American economy and could lead to a significant economic impact. Using an ordinary least squared model the study establishes factors affecting the wage of ELR workers, and determines a wage for both skilled and unskilled workers. In addition, the impact of the program as a percentage of GDP will test if the project is realistic. Previous studies have found that the program would be beneficial as well as financially feasible and even reducing government expenditures on social programs; however, these studies did not undergo testing in developed nations.