The first part of this paper briefly examines the merits of neo-classical arguments regarding the causes of the recent upsurge in Greek unemployment. It shows that the view according to which high unemployment in Greece is caused by high waged rests on a weak empirical foundation. Moreover, by examining features of the Greek labour market (especially the large and eminently 'flexible' informal sector) it suggests that the experience of Greece casts doubt on the view that labour-market flexibility can serve as a cure to unemployment. The second, and major part, examines trade union decline.
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Paper provided by European Institute - Political and Social Sciences in its series Papers with number
99/6.
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