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The public-private duality in wage reforms and adjustment during the Greek crisis

Christopoulou, Rebekka and Monastiriotis, Vassilis (2014) The public-private duality in wage reforms and adjustment during the Greek crisis. Crisis Observatory Research Paper, No. 9/2014. Hellenic Foundation for European and Foreign Policy (ELIAMEP), Athens, Greece.

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Abstract

Publications » Rebekka Christopoulou & Vassilis Monastiriotis: The public-private duality in wage reforms and adjustment during the Greek crisis 14 April, 2014 0 Comments There is a general perception that the crisis in Greece impacted mostly public sector wages, whereas in fact its impact on private sector wages has been equally large, if not larger. In this paper we examine sector-specific wage reforms and dynamics for the duration of the crisis, using micro-data from the Greek Labour Force Survey over 2009-2013 and applying a wage-decomposition analysis on the basis of an endogenous switching regression model, which controls for sector-selection. We find large sectoral differences in wage adjustment not only in terms of magnitude but also in terms of timing and direction. While the private sector has recorded a substantial response to the heavy demand pressure, changing noticeably its valuation of worker and job characteristics, adjustment in the public sector, despite the significant wage-cuts, has been slower and less sizeable. Consequently, public premia for monthly regular wages never fell during the crisis; rather, they initially increased and subsequently returned back to their original level.

Item Type: Monograph (Discussion Paper)
Official URL: http://www.crisisobs.eu/
Additional Information: © 2014 Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Library of Congress subject classification: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HJ Public Finance
Journal of Economic Literature Classification System: H - Public Economics > H1 - Structure and Scope of Government > H11 - Structure, Scope, and Performance of Government
J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc.
J - Labor and Demographic Economics > J4 - Particular Labor Markets > J45 - Public Sector Labor Markets
J - Labor and Demographic Economics > J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining > J58 - Public Policy
Sets: Departments > European Institute
Research centres and groups > Spatial Economics Research Centre
Research centres and groups > Hellenic Observatory
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Identification Number: No. 9/2014
Date Deposited: 12 May 2014 16:11
URL: http://eprints.lse.ac.uk/56732/

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