Monastiriotis, V. – To Archeio

The role of education in regional labour markets: Evidence from two fragile economies

apostolos — Tue, 16 Apr 2019 22:25:50 +0000

This chapter aims to describe regional disparities in the labour market performance of two southern EU countries, Greece and Spain, during the period covering the economic boom and the recession caused by the international financial crisis at the end of the last decade. The crisis hit these two economies with particular virulence due to their macroeconomic imbalances and the weaknesses of their economic structures. This resulted in adjustments in employment and wages in regions that were among the most dynamic during the booming period. An important factor in processes of adjustment, and in the determination of equilibrium outcomes with regard to wages and unemployment more generally, has to do with the human capital endowment available to each regional economy. Thus, this chapter also provides evidence of the effect of the individuals’ level of education on unemployment and wages in each region. The hypothesis is that the regional distribution of individuals’ education would be a key driver of disparities in labour market outcomes and in regional responses to the crisis, and that the impact that education has on unemployment and wages varies depending on the region.

From Indecision to Fast-track Privatisations: Can Greece Still Do It?

apostolos — Tue, 16 Apr 2019 22:25:09 +0000

This paper explains how the collapse of growth after 2008, in combination with soaring public and external deficits, led to the escalation of Greek debt, while the government’s delay in responding to the crisis increased the cost of borrowing and necessitated the bail-out agreement with the IMF and the European Union. One year later, Greece is struggling to harness fiscal deficits amidst a deep recession and rising social tension. Debt sustainability has not yet been ensured and another tranche of loans has been negotiated under new terms and conditions, including higher taxes and extensive privatisations of public companies and property. The paper discusses the main failures of the bail-out agreement and why the lack of growth so far has undermined efforts at stabilisation. As an alternative, the paper suggests that with a modest return to growth, combined with fast-track privatisations, the prospects of debt sustainability improve substantially. In light of the recent debate on the European Stability Mechanism, the paper suggests that the bail-out facility should avoid the debt seniority condition, so that Greece could return to normal market borrowing after 2013 without raising new fears of ‘haircuts’ on private sector obligations

The Return of Street Politics? Essays on the December Riots in Greece

apostolos — Tue, 16 Apr 2019 22:25:06 +0000

In December 2008, following the shooting of teenager Alexis Grigoropoulos, a wave of demonstrations and violent protest rocked Athens and quickly spread to other Greek cities. The initial demonstrations and outbreak of violence were directly linked to the death of the high school youth and were aimed against alleged police incompetence and brutality. The scope of the movement soon broadened to encompass protest against youth unemployment, social inequality, corruption, state inadequacy, higher education reforms and other perceived grievances. The decision to police the demonstration and violent protest in a ‘hands off ‘ manner exacerbated the impact of the events and allowed free rein to vandals and looters. The ‘December events’, and especially the scale of the violence, took many by surprise. Initial reactions and analyses struggled to explain the scope and timing of the events. The causes and consequences of the December riots in Greece need to be properly understood in Greece’s domestic and international context. As a way of initiating a broad and open discussion, the Hellenic Observatory of LSE has commissioned a series of short papers from a range of scholars, analysts and commentators. These papers published here offer a wide range of explanations and diverse interpretations of the cause of the riots and their impact. We hope that these papers will open a coherent, longer-term discussion on the events, which could have an impact on policy and allow us to tackle some key problems in contemporary Greek society.