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The Ins and Outs of Unemployment in the Current Greek Economic Crisis

Author

Listed:
  • Joan Daouli

    (University of Patras, Greece)

  • Michael Demoussis

    (University of Patras, Greece)

  • Nicholas Giannakopoulos

    (University of Patras, Greece)

  • Nikolitsa Lampropoulou

    (University of Patras, Greece)

Abstract

We are investigating unemployment inflows and outflows using micro-data from the Greek Labour Force Survey (1998-2013). Focusing on the post-2008 recessionary period, aggregate unemployment decompositions show that both inflow and outflow rates affect unemployment fluctuations. In particular, early on in the recession period, inflow rates dominates, while later outflow rates take over. These findings remain unaltered when unemployment persistence and low transition rates are taken into account. Furthermore, by applying multinomial regression techniques, we find that the ins and outs of unemployment vary with individual-specific heterogeneity (gender, age, education, etc.). This heterogeneity, however, exhibits a differentiated impact in the pre- and post-2008 periods. Overall, designing an effective employment policy in Greece needs to take into consideration the exceptionally low job finding rate (10%) and employment composition in the ongoing labour market crisis.

Suggested Citation

  • Joan Daouli & Michael Demoussis & Nicholas Giannakopoulos & Nikolitsa Lampropoulou, 2015. "The Ins and Outs of Unemployment in the Current Greek Economic Crisis," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 13(2), pages 177-196.
  • Handle: RePEc:seb:journl:v:13:y:2015:i:2:p:177-196
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    References listed on IDEAS

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    Cited by:

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    2. Vassilis Monastiriotis & Corrado Macchiarelli & Nikolitsa Lampropoulou, 2019. "Transition Dynamics in European Labour Markets During Crisis and Recovery," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 61(2), pages 213-234, June.
    3. Athanasios O. Tagkalakis, 2016. "Unemployment dynamics and the Beveridge curve in Greece," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-34, December.

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    More about this item

    Keywords

    Unemployment; Worker Flows; Transition Probabilities; Unemployment Decomposition;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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