Active Labour Market Policies in Greece: Challenges and responses during the economic crisis


Paraskevi - Viviane Galata
Manolis Chrysakis
Abstract

The effects of recession in Greece and the austerity measures promoted in the framework of Economic Adjustment Programmes had a devastating impact in the labour market. Although several reforms have been introduced in the labour market and social protection, doubts are expressed whether the solutions adopted have been effective so far to mitigate the effects of the crisis. This paper aims to explore the role of active labour market policies in Greece during the economic crisis and the necessary conditions to enhance their contribution in reducing the social repercussions of the crisis. Τhe findings from the analysis of existing literature show that there are several challenges for promoting active labour market policies, particularly in a recession, provided that they will not substitute the fundamental guarantees of income replacement and that will be associated with a comprehensive policy of job creation, while preserving the public character and the role of the state that should not be undermined under the pretext of budgetary constraints.

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