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The Wage-Local Unemployment Relationship in a Highly Regulated Labour Market: Greece

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  • Ilias Livanos

Abstract

Livanos I. The wage-local unemployment relationship in a highly regulated labour market: Greece, Regional Studies. Using data obtained from 80 000 employees, this paper examines the relationship between individual wages and regional unemployment in Greece. The findings highlight the dynamics of the local labour markets in a case such as Greece, where the Organisation for Economic Co-operation and Development (OECD) claims that wage flexibility is limited. This study does not find evidence that wages in Greece are rigid, but finds a wage curve elasticity of close to - 0.1, which corresponds to evidence from many counties. Interestingly, graduates are found to be the most responsive group of workers to the behaviour of local labour markets. [image omitted] Livanos I. Le rapport salaire-chomage local dans un marche du travail extremement reglemente: la Grece, Regional Studies. A partir des donnees provenant de 80.000 salaries, cet article cherche a examiner le rapport entre les salaires des individus et le chomage regional en Grece. Les resultats soulignent la dynamique des marches du travail locaux d'un pays, tel la Grece, ou l'OCDE pretend que la flexibilite des salaires est limitee. Les resultats de cette etude ne temoignent pas de la rigidite des salaires en Grece, mais montrent que l'elasticite de la courbe des salaires se chiffre a pres de - 0,1, ce qui correspond aux resultats provenant de beaucoup de pays. Il est a noter que les diplomes constituent le groupe de travailleurs qui repond le mieux au comportement des marches du travail locaux. Courbe des salaires Courbe de Philips Marches du travail locaux Effets fixes Grece Livanos I. Das Verhaltnis zwischen Lohnen und lokaler Arbeitslosigkeit in einem hochgradig regulierten Arbeitsmarkt: Griechenland, Regional Studies. In diesem Beitrag wird anhand der Daten von 80.000 Arbeitnehmern die Beziehung zwischen den einzelnen Lohnen und der regionalen Arbeitslosigkeit in Griechenland untersucht. Die Ergebnisse verdeutlichen die Dynamik von lokalen Arbeitsmarkten in Fallen wie Griechenland, wo die Lohne laut Angaben der OECD nur begrenzte Flexibilitat aufweisen. In dieser Studie wurden keine Belege dafur gefunden, dass die Lohne in Griechenland rigide ausfallen; stattdessen wurde eine Elastizitat der Lohnkurve in Hohe von annahernd - 0,1 festgestellt, was den Belegen aus zahlreichen Bezirken entspricht. Interessanterweise sind nach den Ergebnissen dieser Studie Hochschulabsolventen diejenige Gruppe an Arbeitnehmern, die am starksten auf das Verhalten der lokalen Arbeitsmarkte reagiert. Lohnkurve Philips-Kurve Lokale Arbeitsmarkte Fixed-effects Griechenland Livanos I. La relacion entre desempleo local y salario en un mercado laboral altamente regulado: Grecia, Regional Studies. Con ayuda de datos obtenidos a partir de 80.000 empleados, en este articulo examino la relacion entre los salarios individuales y el desempleo regional en Grecia. Los resultados destacan las dinamicas de los mercados laborales locales en un caso como el de Grecia, donde la OCDE afirma que la flexibilidad de salarios es limitada. En este estudio no se halla evidencias de que los salarios en Grecia sean rigidos sino mas bien veo una elasticidad de la curva de salarios de aproximadamente - 0,1, lo que corresponde al ejemplo de muchos paises. Es interesante observar que los licenciados son el grupo de trabajadores mas receptivos al comportamiento de los mercados locales de trabajo. Curva salarial Curva de Philips Mercados laborales locales Efectos fijos Grecia

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Article provided by Taylor & Francis Journals in its journal Regional Studies.

Volume (Year): 44 (2010)
Issue (Month): 4 ()
Pages: 389-400

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Handle: RePEc:taf:regstd:v:44:y:2010:i:4:p:389-400
DOI: 10.1080/00343400802251486
Contact details of provider: Web page: http://www.tandfonline.com/CRES20

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Keywords: Wage curve; Philips curve; Local labour markets; Fixed-effects; Greece;

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Cited by:

  1. Roberto Bande Ramudo & Melchor Fernández Fernández & Víctor Montuenga Gómez, 2011. "Wage flexibility and local labour markets: homogeneity of the wage curve in Spain," Documentos de trabajo - Analise Economica 0044, IDEGA - Instituto Universitario de Estudios e Desenvolvemento de Galicia.
  2. 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.
  3. Cholezas, Ioannis & Kanellopoulos, Nikolaos C., 2015. "Labour market reforms in Greece and the wage curve," Economics Letters, Elsevier, vol. 136(C), pages 19-21.
  4. García-Mainar , Inmaculada & Montuenga-Gómez , Víctor M., 2012. "Wage dynamics in Spain: evidence from individual data (1994-2001)," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 24, pages 41-58.
  5. Livanos, Ilias & Pouliakas, Konstantinos, 2009. "The Gender Wage Gap as a Function of Educational Degree Choices in an Occupationally Segregated EU Country," IZA Discussion Papers 4636, Institute for the Study of Labor (IZA).
  6. Livanos, Ilias & Pouliakas, Konstantinos, 2008. "Returns to education by academic discipline in the Greek labour market," MPRA Paper 14159, University Library of Munich, Germany.
  7. Chletsos, Michael & Roupakias, Stelios, 2016. "Do Immigrants Compete with Natives in the Greek Labour Market? Evidence from the Skill-Cell Approach Before and During the Great Recession," MPRA Paper 75659, University Library of Munich, Germany.
  8. Livanos, Ilias, 2009. "The Relationship Between Higher Education and Labour Market in Greece: the Weakest Link?," MPRA Paper 16239, University Library of Munich, Germany.

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