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Public-private wage duality during the Greek crisis

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  • Christopoulou, Rebekka
  • Monastiriotis, Vassilis

Abstract

During the recent crisis, Greece experienced a severe contraction and rapid transformation in its labour relations and pay-setting system in both the private and public sectors. Although the quantity (employment) adjustments that followed have been well documented, the changes that were triggered in the wage structures of the two sectors remain largely unexplored. In this paper we examine these changes using Greek Labour Force Survey micro-data. We find a differential adjustment across sectors in terms of magnitude, timing, and structure. Despite general perceptions, adjustment in public sector wages has been slow and limited, with pre-crisis premia persisting throughout the period. Instead, the private sector recorded substantial adjustment, changing noticeably its valuation of worker and job characteristics and emerging from the crisis with a structure of returns that rewards more intensively marketable skills. This may be an important feature in the prospective recovery of the Greek economy.

Suggested Citation

  • Christopoulou, Rebekka & Monastiriotis, Vassilis, 2016. "Public-private wage duality during the Greek crisis," LSE Research Online Documents on Economics 62743, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:62743
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    File URL: http://eprints.lse.ac.uk/62743/
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    Cited by:

    1. repec:eee:poleco:v:53:y:2018:i:c:p:59-83 is not listed on IDEAS
    2. Daniela Piazzalunga & Maria Laura Di Tommaso, 2019. "The increase of the gender wage gap in Italy during the 2008-2012 economic crisis," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 17(2), pages 171-193, June.
    3. Kumara, Ajantha Sisira, 2015. "Wage Differentials in Sri Lanka: The case of a post-conflict country with a free education policy," MPRA Paper 68068, University Library of Munich, Germany, revised 25 Nov 2015.
    4. repec:spr:izalpo:v:7:y:2018:i:1:d:10.1186_s40173-017-0093-1 is not listed on IDEAS
    5. Christopoulou, Rebekka & Pantalidou, Maria, 2017. "The parental home as labor market insurance for young Greeks during the crisis," GLO Discussion Paper Series 158, Global Labor Organization (GLO).
    6. repec:eee:socmed:v:211:y:2018:i:c:p:147-156 is not listed on IDEAS
    7. repec:eee:ecosys:v:41:y:2017:i:2:p:248-265 is not listed on IDEAS
    8. Tryphon Kollintzas & Dimitris Papageorgiou & Efthymios Tsionas & Vanghelis Vassilatos, 2018. "Market and political power interactions in Greece: an empirical investigation," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-43, December.
    9. Chrysafis Iordanoglou & Manos Matsaganis, 2017. "Why Grexit cannot save Greece (but staying in the Euro area might)," LEQS – LSE 'Europe in Question' Discussion Paper Series 123, European Institute, LSE.
    10. repec:bpj:bejeap:v:19:y:2019:i:2:p:30:n:2 is not listed on IDEAS
    11. Rebekka Christopoulou & Vassilis Monastiriotis, 2018. "Did the crisis make the Greek economy less inefficient? Evidence from the structure and dynamics of sectoral premia," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 125, Hellenic Observatory, LSE.
    12. Chletsos Michael & Roupakias Stelios, 2019. "Do Immigrants Compete with Natives in the Greek Labour Market? Evidence from the Skill-Cell Approach before and during the Great Recession," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 19(2), pages 1-30, April.
    13. Monastiriotis, Vassilis & Martelli, Angelo, 2019. "Crisis, adjustment and resilience in the Greek labour market: an unemployment decomposition approach," LSE Research Online Documents on Economics 100402, London School of Economics and Political Science, LSE Library.
    14. Kollintzas, Tryphon & Papageorgiou, Dimitris & Vassilatos, Vanghelis, 2018. "Market and political power interactions in Greece: A theory," European Journal of Political Economy, Elsevier, vol. 53(C), pages 59-83.

    More about this item

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • H1 - Public Economics - - Structure and Scope of Government
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy

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