The Greek labour market during the crisis: unemployment, employment and labour force participation

Evangelia Papapetrou and Dimitrios Bakas
Additional contact information
Evangelia Papapetrou: Bank of Greece

Economic Bulletin, 2013, issue 38, 65-83

Abstract: The aim of the study is to explore developments in key labour market aggregates, such as the unemployment rate, the participation rate and the employment rate, and to highlight the fact that in the current environment of deep and protracted economic downturn, these developments varied significantly compared with the period before the crisis. The empirical analysis, employing a two-regime threshold cointegration model, shows that the labor force participation rate has increased throughout the period from 1990 onwards, reflecting the long-term trend for increasing female employment. However, prior to 2010, this upward trend is found to be independent of the level of the unemployment rate. Conversely, after the period of Greece's entry into the Memorandum of Understanding (MoU), the participation rate appears to be associated with a particularly high level of unemployment rate that characterizes this period, while accompanied by a sharp fall in the employment rate. It is concluded that the recent high level of unemployment does not discourage potential workers from seeking employment. It appears, however, that new entrants have low employment chances.

Keywords: Labour force participation; Employment; Unemployment; Threshold cointegration; Non-linearity; Non-stationarity (search for similar items in EconPapers)
JEL-codes: C32 J21 J64 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (39)

Downloads: (external link)
https://www.bankofgreece.gr/BogEkdoseis/econbull201311.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bog:econbl:y:2013:i:38:p:65-83

Access Statistics for this article

Economic Bulletin is currently edited by Dimitris Malliaropulos

More articles in Economic Bulletin from Bank of Greece Contact information at EDIRC.
Bibliographic data for series maintained by Anastasios Rizos ().