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Structural reforms to boost inclusive growth in Greece

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  • Christian Daude

    (OECD)

Abstract

This paper takes stock of the main structural reforms that Greece has undertaken since 2010, those currently proposed and that are in the process of implementation, and quantifies the medium and long‑term effects on output. Special attention is given to three issues that are relevant to understanding reform dynamics in Greece: i) the short-term impact of reforms; ii) the effect of some reforms on income inequality and other socioeconomic outcomes; iii) implementation problems that might undermine the ability of structural reforms to deliver their expected outcomes. The reforms, if fully implemented, could raise output by more than 13% over the next decade. Reforms in product markets are particularly important in boosting growth. Poverty and inequality have increased despite policies to mitigate the social impacts of Greece’s deep depression since 2009. Better social policies are needed to strengthen the social safety net and make growth more inclusive. Much of the burden of adjustment has been borne by labour. Labour market institutions should balance the objectives of increasing jobs, reallocating workers to where they can earn the most, and ensuring the fruits of the economic recovery are widely shared. Des réformes structurelles pour une croissance inclusive en Grèce Ce document a pour objet de faire le point sur les principales réformes structurelles que la Grèce a engagées depuis 2010, tant celles qui sont actuellement proposées que celles qui sont en cours de mise en oeuvre, et de chiffrer les effets à moyen et à long terme de ces réformes sur la production. Une attention particulière est accordée aux trois aspects qui comptent pour appréhender la dynamique des réformes en Grèce : i) les effets à court terme des réformes ; ii) les effets de certaines réformes sur les inégalités de revenu et sur d’autres résultats socioéconomiques ; iii) les difficultés de mise en oeuvre qui pourraient compromettre l’obtention des résultats attendus des réformes structurelles. Si elles sont pleinement mises en oeuvre, les réformes pourraient permettre d’accroître la production de plus de 13 % au cours des dix prochaines années. Les réformes des marchés de produits sont particulièrement importantes pour la dynamisation de la croissance. La pauvreté et les inégalités se sont aggravées malgré les mesures prises pour atténuer les conséquences sociales de la profonde dépression dans laquelle la Grèce est plongée depuis 2009. Il faut améliorer les politiques sociales pour renforcer le système de protection sociale et rendre la croissance plus inclusive. Le fardeau de l’ajustement a reposé pour une bonne partie sur la main-d’oeuvre. Il conviendrait que les institutions du marché du travail parviennent à concilier les objectifs que sont la création d’emplois, le redéploiement des travailleurs vers les emplois les mieux rémunérés et un large partage des fruits de la reprise économique.

Suggested Citation

  • Christian Daude, 2016. "Structural reforms to boost inclusive growth in Greece," OECD Economics Department Working Papers 1298, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:1298-en
    DOI: 10.1787/5jlz404fx631-en
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    References listed on IDEAS

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    1. Chrysa Leventi & Manos Matsaganis, 2016. "Estimating the distributional impact of the Greek crisis (2009-2014)," OECD Economics Department Working Papers 1312, OECD Publishing.
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    10. Romain Bouis & Orsetta Causa & Lilas Demmou & Romain Duval & Aleksandra Zdzienicka, 2012. "The Short-Term Effects of Structural Reforms: An Empirical Analysis," OECD Economics Department Working Papers 949, OECD Publishing.
    11. Christine Lewis & Nigel Pain, 2014. "Lessons from OECD forecasts during and after the financial crisis," OECD Journal: Economic Studies, OECD Publishing, vol. 2014(1), pages 9-39.
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    Cited by:

    1. Kouamé, Wilfried A.K. & Tapsoba, Sampawende J.-A., 2019. "Structural reforms and firms’ productivity: Evidence from developing countries," World Development, Elsevier, vol. 113(C), pages 157-171.
    2. Christine de la Maisonneuve, 2016. "How to boost export performance in Greece," OECD Economics Department Working Papers 1299, OECD Publishing.
    3. Juan Carlos Cuestas & Javier Ordóñez & Karsten Staehr, 2019. "Unit labour costs and the dynamics of output and unemployment in the southern European crisis countries," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 46(3), pages 597-616, August.

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    More about this item

    Keywords

    economic growth; inclusive growth; labour market; product markets; structural reforms;
    All these keywords.

    JEL classification:

    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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