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The ins and outs of Greek unemployment in the Great Depression

Author

Listed:
  • Daouli, Joan
  • Demoussis, Michael
  • Giannakopoulos, Nicholas
  • Lambropoulou, Nikolitsa

Abstract

We investigate the unemployment inflows and outflows using micro-data from the Greek Labour Force Survey (1998-2013). Focusing on the post-2008 recessionary period, aggregate unemployment decompositions show that both, inflow and outflow rates affect unemployment variations. In particular, early in the recession the inflow rate dominates while later the outflow rate takes over. These findings remain unaltered when unemployment persistence and low transition rates are taken into account. Furthermore, applying multinomial regression techniques we find that the ins and outs of unemployment vary with individual-specific heterogeneity (gender, age, education, etc.). This heterogeneity however exhibits a differentiated impact in the pre- and post-2008 periods. Overall, the design of an effective employment policy in Greece needs to take into consideration the exceptionally low job finding rate (10%) and its composition in the ongoing labour market crisis.

Suggested Citation

  • Daouli, Joan & Demoussis, Michael & Giannakopoulos, Nicholas & Lambropoulou, Nikolitsa, 2015. "The ins and outs of Greek unemployment in the Great Depression," MPRA Paper 66299, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:66299
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    File URL: https://mpra.ub.uni-muenchen.de/66299/1/MPRA_paper_66299.pdf
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    References listed on IDEAS

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    Cited by:

    1. Giannakopoulos, Nicholas, 2015. "The added worker effect of married women in Greece during the Great Depression," MPRA Paper 66298, University Library of Munich, Germany.
    2. Kamil Galuscak & Jan Solc & Pawel Strzelecki, 2018. "Labour Market Flows over the Business Cycle: The Role of the Participation Margin," Working Papers 2018/17, Czech National Bank.

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    More about this item

    Keywords

    Unemployment; worker flows; transition probabilities; unemployment decomposition;
    All these keywords.

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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