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The wage curve before and during the Greek economic crisis

Author

Listed:
  • Joan Daouli

    (University of Patras)

  • Michael Demoussis

    (University of Patras)

  • Nicholas Giannakopoulos

    () (University of Patras)

  • Ioannis Laliotis

    (University of Surrey)

Abstract

Abstract Using cross-sectional data from the Labour Force Survey, we investigate whether a wage curve, i.e. a negative relationship between real wages and regional unemployment, could be estimated in the Greek labour market and in the period 1999–2014. Adopting individual static and regional dynamic specifications, our results do not support the existence of such a relationship despite the extensive macroeconomic adjustment of real wages after 2009. However, allowing for period-specific heterogeneous slopes, we find that a negative relationship between wages and regional unemployment emerged in the period 2010Q2–2011Q4 which however was short-lived. This relationship appears to be exclusively due to the restructuring of the collective bargaining regime and the reduction in the national minimum wages, both of which were implemented in the private sector.

Suggested Citation

  • Joan Daouli & Michael Demoussis & Nicholas Giannakopoulos & Ioannis Laliotis, 2017. "The wage curve before and during the Greek economic crisis," Empirical Economics, Springer, vol. 52(1), pages 59-77, February.
  • Handle: RePEc:spr:empeco:v:52:y:2017:i:1:d:10.1007_s00181-016-1073-9
    DOI: 10.1007/s00181-016-1073-9
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    References listed on IDEAS

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    Cited by:

    1. Chletsos, Michael & Roupakias, Stelios, 2018. "Education and wage inequality before and during the fiscal crisis: A quantile regression analysis for Greece 2006-2016," MPRA Paper 87633, University Library of Munich, Germany.
    2. repec:sgh:erfinj:v:3:y:2018:i:2:p:79-92 is not listed on IDEAS

    More about this item

    Keywords

    Wage curve; Regional unemployment; Reforms; Crisis; Greece;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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