Unemployment in Greece: A Survey of the Issues
72 Pages Posted: 15 Feb 2006
Date Written: August 1996
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.
JEL Classification: D72, H31, J31, J45, J64
Suggested Citation: Suggested Citation