Crisis, adjustment and resilience in the Greek labour market: an unemployment decomposition approach

Vassilis Monastiriotis () and Angelo Martelli

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: The crisis in Greece led to one of the largest economic shocks in European history. Drawing on micro-data from the Greek Labour Force Survey, we utilise standard micro-econometric methods and non-linear decomposition techniques to measure the size of the shock exerted on the Greek regional and national labour markets and the compositional and price adjustments in response to this. We find elements of economic dynamism, with some sizeable price adjustments in the economy of the Greek capital, Athens; but overall our results show that compositional adjustments (in labour quality/characteristics) have been partial and limited, becoming stronger only in the more recent recovery. Our results suggest a significant metropolitan advantage with regard to economic resilience, coming predominantly from a more efficient functioning of the labour market in metropolitan areas vis-a-vis other regions. Our use of the decomposition techniques for the analysis of macro-level developments in the labour market offers a novel perspective to the application of the decomposition methodology.

Keywords: Unemployment risk; Non-linear decomposition; Greek crisis; Shock; Adjustment (search for similar items in EconPapers)
JEL-codes: J01 N0 R14 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2021-01-01
New Economics Papers: this item is included in nep-geo
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Citations: View citations in EconPapers (2)

Published in International Regional Science Review, 1, January, 2021, 44(1), pp. 85-112. ISSN: 0160-0176

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http://eprints.lse.ac.uk/106209/ Open access version. (application/pdf)

Related works:
Journal Article: Crisis, Adjustment and Resilience in the Greek Labor Market: An Unemployment Decomposition Approach (2021)
Working Paper: Crisis, adjustment and resilience in the Greek labour market: an unemployment decomposition approach (2019)
Working Paper: Crisis, adjustment and resilience in the Greek labour market: an unemployment decomposition approach (2019)
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