Αρχική Σελίδα Αρχική Σελίδα
  Rss Feeds

LABOUR MARKET ADJUSTMENTS AND REFORMS IN GREECE DURING THE CRISIS: MICROECONOMIC EVIDENCE FROM THE THIRD WAVE OF THE WAGE DYNAMICS SURVEY

Theodora Kosma

Bank of Greece

 Evangelia Papapetrou

Bank of Greece

Georgia Pavlou

Bank of Greece

Christina Tsochatzi

Bank of Greece

Pinelopi Zioutou

Bank of Greece

Abstract

The recession that followed the global financial crisis and the sovereign debt crisis resulted in large falls in output and rises in unemployment across Europe. In this context, many countries implemented significant reforms of their labour market. In order to analyse the impact of labour market reforms and, in particular, to investigate, how firms adjusted to the shocks affecting them, the European System of Central Banks (ESCB) conducted a third wave of the Wage Dynamics Network (WDN3) survey in 2014-15. This paper describes the main findings of the Greek WDN3 survey. The results show that the decline in economic activity, during the period 2010-2013, had a significant negative impact on Greek firms’ activity. Greek firms reacted to the shocks affecting them by adjusting both labour input and wages and reforms seem to have made it easier for this adjustment to take place.

Keywords: Survey data, wage adjustment, employment adjustment, labour market reforms

JEL Classification: E24, J30, J50

Acknowledgements: We would like to thank Costas Kanellopoulos for his useful and constructive comments and suggestions during the initial phases of the preparation of this paper as well as for his valuable help in the organization and conduct of the survey. We would also like to thank Elli Nobeli for excellent research assistance as well as Konstantinos Kanellopoulos. Finally, we thank Juan Francisco Jimeno, Heather Gibson, Hiona Balfoussia and the participants of the Wage Dynamics Network meetings for their helpful comments. The views expressed in this paper are those of the authors and do not necessarily reflect those of the Bank of Greece.


Correspondence:

Theodora Kosma

Economic Analysis and Research

Bank of Greece,

21 E. Venizelos Ave.,

10250 Athens, Greece

Tel.: +30 210 320 2642

Email: tkosma@bankofgreece.gr



Πλήρες Κείμενο