Labour markets are not frictionless. Dealing with these frictions, calls for the establishment of institutions to protect employees from inter alia extreme income volatility. The Greek labour market was characterized by a combination of high employment protection and limited benefits of the unemployed. Institutions to deal with the shortcomings of the labour market were adopted in Greece a very long time ago. This presentation looks at the political economy considerations that led to the adoption of the specific labour market institutions, discusses whether these were appropriate at the time they were instated and at the eve of the 21st century. The presentation argues that these institutions contributed to the loss of competitiveness of the Greek economy that led up to the crisis without protecting those more in need.

Daphne Nicolitsas is an Academic Visitor at St Antony’s College in Hilary and Trinity terms of the academic year 2018/19. Since March 2014, Daphne is an Assistant Professor in Applied Economic Theory at the Department of Economics of the University of Crete. Her main research interests are in the field of labor economics, education economics and well-being. Immediately prior to joining the University of Crete, Daphne worked at the Bank of Greece (Deputy Director, Economic Research Department). She holds a an undergraduate degree in Economics from the Athens School of Economics and Business Sciences, an MPhil in Economics from the University of Oxford and a PhD in Economics (Modeling Strike Activity in the UK) from the University of Manchester. Her current research focuses on the economic impact of the extensions of sectoral collective agreements (part of a cross-country EU-funded project); the origins and reforms of Greek labor market institutions; educational outcomes of University students and comparisons of well-being across European nations.