Unemployment in Greece: A Survey of the Issues
August 1, 1996
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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.
Subject: Employment, Labor, Labor force, Labor markets, Unemployment, Wages
Keywords: demand shock, efficiency wage, Employment, equation equivalent, Europe, inflation-unemployment curve, inflation-unemployment locus, involuntary unemployment, Labor force, Labor markets, labour force, Northern Europe, Phillips curve, private sector, severance pay, Southern Europe, Unemployment, unemployment in Greece, unemployment persistence, unemployment rate, unemployment-vacancy relationship, Wages, WP
Pages:
72
Volume:
1996
DOI:
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Issue:
091
Series:
Working Paper No. 1996/091
Stock No:
WPIEA0911996
ISBN:
9781451951714
ISSN:
1018-5941
