Abstract: This paper proposes a centrally funded and locally administered Chinese Green Job Guarantee to achieve three goals. First is to eliminate China’s 24.27 million urban unemployment by providing a public job to anyone willing, able, and ready to work. Second is to achieve public purposes (building infrastructure, addressing environmental degradation, and preserving traditional culture, etc.) by hiring the previously unemployed 24.27 million Chinese workers. Third is to promote organic economic growth with the increased consumption from the 24.27 millions JG workers. Increasing China’s fiscal deficit by 1.58% of 2019 GDP would have financed a complete Chinese Green JG to eliminate 24.27 million urban unemployment and elevate GDP growth rate to the 9.23% and 10.65% range in 2019. Moreover, China’s deficit spending to finance the Green JG is not only sustainable but also functional. Finally, the paper explores the design of a Chinese Green JG, such as how it should be administered, what jobs it could create, and why China should adopt a gradualist approach.
Keywords: Chinese economy, unemployment, national debt, government deficit, job guarantee, employer of last resort, sustainable development
JEL codes: J680, H630, H620, J580, B5, E6
