Unemployment in Greece: A Survey of the Issues

Author/Editor:

Dimitri G Demekas ; Zenon Kontolemis

Publication Date:

August 1, 1996

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

The Greek unemployment rate rose from 2 percent in the 1960s to 9-10 percent in the 1990s. This reflected the increase in female participation rates, the slowdown in growth, the restructuring of production, and the increased mismatch between jobs and job seekers. But the most crucial factor was the persistence of real wage aspirations. The paper develops and tests a model that attributes this to the rapid expansion in the number of easy, life-time government jobs and the increase in the public/private wage differential during the 1980s.

Series:

Working Paper No. 1996/091

Subject:

Employment Labor Labor force Labor markets Unemployment Wages

English

Publication Date:

August 1, 1996

ISBN/ISSN:

9781451951714/1018-5941

Stock No:

WPIEA0911996

Pages:

72

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