Public-private wage duality during the Greek crisis

Christopoulou, Rebekka and Monastiriotis, Vassilis ORCID: 0000-0003-3709-3119 (2016) Public-private wage duality during the Greek crisis. Oxford Economic Papers, 68 (1). 174 - 196. ISSN 0030-7653

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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 article 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.

Item Type:	Article
Official URL:	http://oep.oxfordjournals.org/
Additional Information:	©2016 The Authors.
Divisions:	Spatial Economics Research Centre Hellenic Observatory
Subjects:	H Social Sciences > HC Economic History and Conditions H Social Sciences > HD Industries. Land use. Labor
JEL classification:	C - Mathematical and Quantitative Methods > C3 - Econometric Methods: Multiple; Simultaneous Equation Models; Multiple Variables; Endogenous Regressors > C31 - Cross-Sectional Models; Spatial Models; Treatment Effect Models C - Mathematical and Quantitative Methods > C3 - Econometric Methods: Multiple; Simultaneous Equation Models; Multiple Variables; Endogenous Regressors > C34 - Truncated and Censored Models H - Public Economics > H1 - Structure and Scope 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
Date Deposited:	16 Jul 2015 11:35
Last Modified:	01 Nov 2024 05:27
URI:	http://eprints.lse.ac.uk/id/eprint/62743

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