Reforms

Your Content Goes Here In view of long-standing weaknesses in Greece’s labour markets, several labour market reforms were implemented during the economic adjustment programmes with two objectives. Firstly, to support the economy’s adjustment through more flexible labour markets and secondly, to enhance gains in cost competitiveness. In relation to their objectives, we find evidence that reforms largely fulfilled the second objective and partially the first, albeit left mostly unaddressed some of the long-standing weaknesses, such as low participation rate and high tax wedge. The analysis is backed by two distinct but complementary approaches. From a micro-founded analysis, while the [...]