Work

The café economy: structural transformation in Greece in the wake of austerity and “reforms”

Year: 2025

Type: report

Abstract: This paper investigates the structural transformation of the Greek economy over the past fifteen years, focusing on the increasing dominance of the Accommodation and Food Service Activities (AFSA) sector in the aftermath of austerity and structural reforms. Despite promises of productivity gains through labor market and product market reforms, the Greek economy has experienced a sharp decline in labor productivity and a significant reallocation of employment towards low-productivity sectors, especially AFSA, reminiscent of a Lewis-type dual sector economy. Using a simple Panel-VAR model we find that declining aggregate demand and real wages were key drivers of this productivity collapse. Our findings support theories of technological change that emphasize output growth and the cost of labor as fundamental determinants of productivity growth.

Source: London School of Economics and Political Science Research Online (London School of Economics and Political Science)

Authors: Nikiforos, Michalis, Missos, Vlassis, Pierros, Christos, Rodousakis, Nikolaos

Institutions: Azim Premji University, Centre for Planning and Economic Research

Language: English

Topic: Contemporary and Historical Greek Studies

Subfield: Sociology and Political Science

Field: Social Sciences

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: green

OpenAlex ID: W7130635449

Cites: 33

Cited by:

Related to: 10