IDEAS home Printed from https://ideas.repec.org/p/hel/greese/80.html
   My bibliography  Save this paper

Beyond Rising Unemployment: Unemployment Risk, Crisis and Regional Adjustments in Greece

Author

Listed:
  • Vassilis Monastiriotis
  • Angelo Martelli

Abstract

The remarkable rise in unemployment in Greece has in a way overshadowed the substantial differentiation, across regions, in terms of regional unemployment and labour market adjustment. This paper examines the geography of these dynamics using probit regressions of unemployment risk and decomposing the observed regional unemployment differentials into three components corresponding to differences in labour quality, matching efficiency and effective demand. We find that, underlying the general increase in unemployment is a wealth of unemployment dynamics and adjustment trajectories. The fall in effective demand has been largest in the main metropolitan regions and the north and north-western periphery. Adjustment has been strong in some areas (e.g., Athens) but, overall, adjustment processes (such as bumping-down and changes in the mix of workforce characteristics) have been weak. The crisis has nullified the improvements in labour market performance registered since the country’s entry into the Eurozone, hitting especially those regions that benefitted most from the latter. The spatial differentiation of adjustment intensities and demand pressures suggests a heightened role for regional policy in the post-crisis period, especially in relation to addressing problems of over-education and matching efficiency in the demand-depressed areas and of inter-regional adjustment mechanisms nationally.

Suggested Citation

  • Vassilis Monastiriotis & Angelo Martelli, 2013. "Beyond Rising Unemployment: Unemployment Risk, Crisis and Regional Adjustments in Greece," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 80, Hellenic Observatory, LSE.
  • Handle: RePEc:hel:greese:80
    as

    Download full text from publisher

    File URL: http://www.lse.ac.uk/europeanInstitute/research/hellenicObservatory/CMS%20pdf/Publications/GreeSE/GreeSE-No80.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Theologos Dergiades & Costas Milas & Theodore Panagiotidis, 2015. "Tweets, Google trends, and sovereign spreads in the GIIPS," Oxford Economic Papers, Oxford University Press, vol. 67(2), pages 406-432.
    2. Christos Dimas, 2010. "Privatization in the Name of ‘Europe’: analyzing the telecoms privatization in Greece from a ‘discursive institutionalist’ perspective," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 41, Hellenic Observatory, LSE.
    3. Anagnostopoulos, Achilleas & Siebert, W. Stanley, 2012. "The Impact of Greek Labour Market Regulation on Temporary and Family Employment: Evidence from a New Survey," IZA Discussion Papers 6504, Institute for the Study of Labor (IZA).
    4. Caraveli, Helen & Tsionas, Efthymios G., 2012. "Economic restructuring, crises and the regions: the political economy of regional inequalities in Greece," LSE Research Online Documents on Economics 44882, London School of Economics and Political Science, LSE Library.
    5. Prodromos Vlamis, 2013. "Greek Fiscal Crisis and Repercussions for the Property Market," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 76, Hellenic Observatory, LSE.
    6. Yannis Kechagiaras, 2012. "Why did Greece block the Euro-Atlantic integration of the Former Yugoslav Republic of Macedonia? An Analysis of Greek Foreign Policy Behaviour Shifts," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 58, Hellenic Observatory, LSE.
    7. Voskeritsian, Horen & Kornelakis, Andreas, 2011. "Institutional change in Greek industrial relations in an era of fiscal crisis," LSE Research Online Documents on Economics 41758, London School of Economics and Political Science, LSE Library.
    8. Nicholas APERGIS & Arusha COORAY, 2013. "New Evidence on the Remedies of the Greek Sovereign Debt Problem," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 79, Hellenic Observatory, LSE.
    9. Dimas, Christos, 2010. "Privatization in the name of ‘Europe’: analyzing the telecoms privatization in Greece from a ‘discursive institutionalist’ perspective," LSE Research Online Documents on Economics 31089, London School of Economics and Political Science, LSE Library.
    10. Alexis Heraclides, 2011. "The Essence of the Greek-Turkish Rivalry: National Narrative and Identity," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 51, Hellenic Observatory, LSE.
    11. Yiannos Katsourides, 2013. "Political Parties and Trade Unions in Cyprus," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 74, Hellenic Observatory, LSE.
    12. Apergis, Nicholas, 2011. "Characteristics of inflation in Greece: mean spillover effects among CPI components," LSE Research Online Documents on Economics 32597, London School of Economics and Political Science, LSE Library.
    13. George Alogoskoufis, 2013. "Macroeconomics and Politics in the Accumulation of Greece’s Debt: An econometric investigation, 1975-2009," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 68, Hellenic Observatory, LSE.
    14. Mamatzakis, Emmanuel, 2013. "Are there any animal spirits behind the scenes of the Euro area sovereign debt crisis?," LSE Research Online Documents on Economics 50984, London School of Economics and Political Science, LSE Library.
    15. Nicos Christodoulakis, 2013. "Currency crisis and collapse in interwar Greece: predicament or policy failure?," European Review of Economic History, Oxford University Press, vol. 17(3), pages 272-293, August.
    16. Nikos Chrysoloras, 2013. "Rebuilding Eurozone’s Ground Zero. A review of the Greek economic crisis," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 66, Hellenic Observatory, LSE.
    17. Kostas Ifantis, 2013. "The US and Turkey in the fog of Regional Uncertainty," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 73, Hellenic Observatory, LSE.
    18. Elpida Prasopoulou, 2011. "In quest for accountability in Greek public administration: The case of the Taxation Information System (TAXIS)," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 53, Hellenic Observatory, LSE.
    19. George Alogoskoufis, 2012. "Greece’s Sovereign Debt Crisis: Retrospect and Prospect," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 54, Hellenic Observatory, LSE.
    20. Kosmidis, Spyros, 2013. "Government constraints and economic voting in Greece," LSE Research Online Documents on Economics 50259, London School of Economics and Political Science, LSE Library.
    21. Julien Etienne, 2013. "Controlled negative reciprocity between the state and civil society: the Greek case," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 71, Hellenic Observatory, LSE.
    22. Georgia Kaplanoglou & Vassilis T. Rapanos, 2011. "The Greek Fiscal Crisis and the Role of Fiscal Governance," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 48, Hellenic Observatory, LSE.
    23. Stella Ladi, 2012. "The Eurozone Crisis and Austerity Politics: A Trigger for Administrative Reform in Greece?," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 57, Hellenic Observatory, LSE.
    24. Christos Lyrintzis, 2011. "Greek Politics in the Era of Economic Crisis: Reassessing Causes and Effects," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 45, Hellenic Observatory, LSE.
    25. Lyrintzis, Christos, 2011. "Greek politics in the era of economic crisis: reassessing causes and effects," LSE Research Online Documents on Economics 33826, London School of Economics and Political Science, LSE Library.
    26. Yannis Valinakis, 2012. "Greece’s European Policy Making," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 63, Hellenic Observatory, LSE.
    27. Manussos Marangudakis & Kostas Rontos & Maria Xenitidou, 2013. "State Crisis and Civil Consciousness in Greece," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 77, Hellenic Observatory, LSE.
    28. Spyros Kosmidis, 2013. "Government Constraints and Economic Voting in Greece," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 70, Hellenic Observatory, LSE.
    29. Christodoulakis, Nicos, 2012. "Currency crisis and collapse in interwar Greece: predicament or policy failure?," LSE Research Online Documents on Economics 44881, London School of Economics and Political Science, LSE Library.
    30. Spyros Skouras & Nicos Christodoulakis, 2011. "Electoral Misgovernance Cycles: Evidence from wildfires and tax evasion in Greece and elsewhere," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 47, Hellenic Observatory, LSE.
    31. Melina Skouroliakou, 2012. "The Communication Factor in Greek Foreign Policy: An Analysis," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 55, Hellenic Observatory, LSE.
    32. Vlamis, Prodromos, 2013. "Greek fiscal crisis and repercussions for the property market," LSE Research Online Documents on Economics 52627, London School of Economics and Political Science, LSE Library.
    33. Elias Katsikas & Theodore Panagiotidis, 2010. "Student Status and Academic Performance: an approach of the quality determinants of university studies in Greece," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 40, Hellenic Observatory, LSE.
    34. Anastassios Chardas, 2012. "Multi-level governance and the application of the partnership principle in times of economic crisis in Greece," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 56, Hellenic Observatory, LSE.
    35. Dimitris Venieris, 2013. "Crisis Social Policy and Social Justice: the case for Greece," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 69, Hellenic Observatory, LSE.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Athanasia Chalari & Clive Sealey & Mike Webb, 2016. "A Comparison of Subjective Experiences and Responses to Austerity of UK and Greek Youth," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 102, Hellenic Observatory, LSE.
    2. Jordaan, Jacob A. & Monastiriotis, Vassilis, 2016. "The domestic productivity effects of FDI in Greece: loca(lisa)tion matters!," LSE Research Online Documents on Economics 68816, London School of Economics and Political Science, LSE Library.
    3. Stavros B. Thomadakis, 2015. "Growth, Debt and Sovereignty: Prolegomena to the Greek Crisis," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 91, Hellenic Observatory, LSE.
    4. Yannis Tsirbas & Dimitri Sotiropoulos, 2015. "What Greek political elites think about Europe and the crisis? An exploratory analysis," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 93, Hellenic Observatory, LSE.
    5. Nick Papandreou, 2014. "Life in the First Person and the Art of Political Storytelling:The Rhetoric of Andreas Papandreou," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 85, Hellenic Observatory, LSE.
    6. Monokroussos, Platon & Thomakos, Dimitrios, D. & Alexopoulos, Thomas A., 2016. "The determinants of loan loss provisions:an analysis of the Greek banking systemin light of the sovereign debt crisis," LSE Research Online Documents on Economics 68586, London School of Economics and Political Science, LSE Library.
    7. Rosa VAsilaki, 2016. "Policing the crisis in Greece: The others' side of the story," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 98, Hellenic Observatory, LSE.
    8. Chalari, Athanasia & Sealey, Clive & Webb, Mike, 2016. "A comparison of subjective experiencesand responses to austerity of UK andGreek youth," LSE Research Online Documents on Economics 68585, London School of Economics and Political Science, LSE Library.
    9. Kougias, Konstantinos, 2017. "‘Real’ flexicurity worlds in action: evidence from Denmark and Greece," LSE Research Online Documents on Economics 69576, London School of Economics and Political Science, LSE Library.
    10. Nicos Christodoulakis, 2014. "The Conflict Trap in the Greek Civil War 1946-1949: An economic approach," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 83, Hellenic Observatory, LSE.
    11. Konstantinos Kougias, 2017. "‘Real’ Flexicurity Worlds in action: Evidence from Denmark and Greece," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 106, Hellenic Observatory, LSE.
    12. Stavros Thomadakis, Dimitrios Gounopoulos, Christos Nounis and Michalis Riginos, 2014. "Financial Innovation and Growth: Listings and IPOs from 1880 to World War II in the Athens Stock Exchange," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 86, Hellenic Observatory, LSE.
    13. Vassilis Arapoglou, Kostas Gounis, 2015. "Poverty and Homelessness in Athens: Governance and the Rise of an Emergency Model of Social Crisis Management," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 90, Hellenic Observatory, LSE.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hel:greese:80. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vassilis Monastiriotis). General contact details of provider: http://edirc.repec.org/data/lsepsuk.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.