Publication: Reacting Quickly and Protecting Jobs: The Short-Term Impacts of the COVID-19 Lockdown on the Greek Labor Market
Loading...
Published
2020-08
ISSN
Date
2020-08-13
Editor(s)
Abstract
This paper uses administrative, survey, and online vacancy data to analyze the short-term labor market impacts of the COVID-19 lockdown in Greece. The analysis finds that flows into unemployment have not increased; instead, separations were lower than would have been expected given trends in recent years. At the same time, employment was about 12 percent lower at the end of June than it would have been without the pandemic. The interrupted time-series and difference-in-differences estimates indicate that this was due to a dramatic slowdown in hiring during months when job creation typically peaks in normal years, mostly in tourism. Although the reasons for these patterns are not formally tested, the analysis suggests that the measures introduced to mitigate the effects of the crisis in Greece played an important role. These measures prohibited layoffs in industries affected by the crisis and tied the major form of income support to the maintenance of employment relationships.
Link to Data Set
Citation
“Betcherman, Gordon; Giannakopoulos, Nicholas; Laliotis, Ioannis; Pantelaiou, Ioanna; Testaverde, Mauro; Tzimas, Giannis. 2020. Reacting Quickly and Protecting Jobs: The Short-Term Impacts of the COVID-19 Lockdown on the Greek Labor Market. Policy Research Working Paper;No. 9356. © World Bank. http://hdl.handle.net/10986/34353 License: CC BY 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Publication Climate and Social Sustainability in Fragility, Conflict, and Violence Contexts(Washington, DC: World Bank, 2026-01-07)Climate change is widely recognized as a driver of violent conflict, but its broader social effects remain less understood. Ignoring these dimensions risks a vicious cycle where climate policies might undermine socially just adaptation. Evidence is still limited on how climate shocks influence political participation, trust, or migration. This paper helps fill that gap by examining links between climate change, conflict, and social sustainability, with a focus on inclusion, resilience, cohesion, and legitimacy. Using secondary data from 2019–24, the study applies simple correlation-based methods to test three hypotheses on the nature, severity, and composition of these associations. The analysis combines multiple climate impact measures, new conflict classifications, recent social sustainability frameworks, and controls for population and geography. The results reveal strong correlations—not causation—between climate events and contexts of fragility, conflict, and violence. Climate impacts are most pronounced in both national and subnational conflict settings. The study also finds robust links between fragility, conflict, and violence and low levels of social sustainability, reflecting its role as both a driver and consequence of conflict. Some dimensions—such as violent events and insecurity—appear weaker in areas most affected by climate shocks. Two of the hypotheses are supported, and one remains inconclusive.Publication The Macroeconomic Implications of Climate Change Impacts and Adaptation Options(Washington, DC: World Bank, 2025-05-29)Estimating the macroeconomic implications of climate change impacts and adaptation options is a topic of intense research. This paper presents a framework in the World Bank's macrostructural model to assess climate-related damages. This approach has been used in many Country Climate and Development Reports, a World Bank diagnostic that identifies priorities to ensure continued development in spite of climate change and climate policy objectives. The methodology captures a set of impact channels through which climate change affects the economy by (1) connecting a set of biophysical models to the macroeconomic model and (2) exploring a set of development and climate scenarios. The paper summarizes the results for five countries, highlighting the sources and magnitudes of their vulnerability --- with estimated gross domestic product losses in 2050 exceeding 10 percent of gross domestic product in some countries and scenarios, although only a small set of impact channels is included. The paper also presents estimates of the macroeconomic gains from sector-level adaptation interventions, considering their upfront costs and avoided climate impacts and finding significant net gross domestic product gains from adaptation opportunities identified in the Country Climate and Development Reports. Finally, the paper discusses the limits of current modeling approaches, and their complementarity with empirical approaches based on historical data series. The integrated modeling approach proposed in this paper can inform policymakers as they make proactive decisions on climate change adaptation and resilience.Publication Institutional Capacity for Policy Implementation: An Analytical Framework(Washington, DC: World Bank, 2026-01-07)State capacity is an important prerequisite for policy implementation, yet at the country level it is difficult to measure, assess, and reform. This paper proposes a focus on institutional capacity: the ability of public institutions to implement the specific policy mandates for which they are responsible. Based on a review of existing literature, the paper defines the different dimensions that compose institutional capacity and groups them into two cross-cutting categories: organizational dimensions (personnel, financial resources, information systems, and management practices) and governance dimensions (transparency, independence, and accountability). The paper proposes measures for organizational and governance dimensions using existing data, shows intra-institutional variation of these measures within countries, and discusses how new data could be collected for better measurement of these concepts. Finally, the paper illustrates how the framework can be used to diagnose the sources of common problems related to weak policy implementation.Publication South Africa’s Fragmented Cities: The Unequal Burden of Labor Market Frictions(Washington, DC: World Bank, 2026-01-08)Using high-resolution administrative, census, and satellite data, this paper shows that South African cities are characterized by spatial mismatches between where people live and where jobs are located, relative to 20 global peers. Areas within 5 kilometers of commercial centers have 9,300 fewer residents per square kilometer than expected, which is 60 percent below the global median. Poor, dense neighborhoods are most affected. In Johannesburg, a 10-percentile increase in distance from the nearest business hub corresponds to a 3.7-percentile drop in asset wealth (a proxy of household wellbeing) and 4.9-percentile drop in employment. In Cape Town, the declines are 4.0 and 3.7 percentiles, respectively. Employment is 87 percent lower in the poorest decile than the richest in Johannesburg and 61 percent lower in Cape Town. These findings suggest that South Africa’s spatial organization of people and economic activity constrains agglomeration and reinforces inequality. This methodology provides a scalable and standardized data-driven framework to analyze spatial accessibility and agglomeration frictions in complex, data-constrained urban systems.Publication Investment in Emerging and Developing Economies(Washington, DC: World Bank, 2026-01-07)The world faces a pressing challenge to meet key development objectives amid slowing growth and rising macroeconomic and geopolitical risks. With the number of job seekers rising rapidly, infrastructure shortfalls continuing to be large, and climate costs mounting, the case for a significant investment push has never been stronger. Yet the capacity to respond in many emerging markets and developing economies has eroded. Since the global financial crisis, investment growth has slowed to about half its pace in the 2000s, with both public and private investment weakening. Foreign direct investment inflows—a critical source of capital, technology, and managerial know-how—have also fallen sharply and become increasingly concentrated, leaving low-income countries with only a marginal share. The risks of further retrenchment are significant, as trade tensions, policy uncertainty, and elevated debt levels continue to weigh on investment. Reigniting momentum will require ambitious domestic reforms to strengthen institutions, rebuild macro-fiscal stability, and deepen trade and investment integration—the foundations of a supportive business climate. At the same time, international cooperation is indispensable. A renewed commitment to a predictable system of cross-border trade and investment flows, combined with scaled-up financial support and sustained technical assistance, is essential to help emerging markets and developing economies—especially low-income countries and economies in fragile and conflict situations—bridge financing gaps and implement the domestic reforms needed to restore investment as an engine of growth, jobs, and development.
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Labor Market Institutions : A Review of the Literature(World Bank, Washington, D.C., 2012-11)This paper reviews the findings of more than 150 studies on the impacts of four types of labor market institutions: minimum wages, employment protection regulation, unions and collective bargaining, and mandated benefits. The review places particular emphasis on results from developing countries. Impacts studied are on living standards (employment and earnings effects), productivity, and social cohesion, to the extent that this has been analyzed. Strong and opposing views are held on the costs and benefits of labor market institutions. On balance, the results of this review suggest that, in most cases, the impacts of these institutions are smaller than the heat of the debates would suggest. Efficiency effects of labor market regulations and collective bargaining are sometimes found but not always, and the effects can be in either direction and are usually modest. Distributional impacts are clearer, with two effects predominating: an equalizing effect among covered workers but groups such as youth, women, and the less skilled disproportionately outside the coverage and its benefits. While the overall conclusion is one of modest effects in most cases, this does not mean that impacts cannot be more dramatic where regulations are set or institutions operate in ways that exacerbate the labor market imperfections that they were designed to address.Publication Potential Responses to the COVID-19 Outbreak in Support of Migrant Workers(World Bank, Washington, DC, 2020-04-21)The note describes the key challenges facing the health, livelihoods, and mobility of internal and international migrants and their families due to the COVID-19 (Coronavirus) outbreak. The note presents the policy options available to governments to address these challenges and describes the assistance that the World Bank can offer in areas related to social protection and jobs to support these efforts. The living and working conditions of internal and international migrants make them vulnerable to contracting COVID-19 (Coronavirus). Measures put in place to control disease transmission both within and across countries have resulted in significant disruption in transportation networks and in labor markets that have hit migrant workers hard. The resulting decline in remittances will transmit these negative impacts to the families of migrants. Travel restrictions may lead to labor shortages in critical sectors like agriculture that are dominated by migrant workers. While the specific type of support that should be targeted to migrants depends on location, legal status, and type of migration, most migrants will need access to safety nets in the form of cash or in-kind assistance to support them as they comply with transmission control measures and cope with the impacts of the crisis. Policies to support employment retention and promotion will be particularly important as a complement to these safety nets for internal migrants and migrants returning from abroad. Policies to offset the expected declines in remittances will be important for all migrants and their families. Programs created to respond to the COVID-19 (Coronavirus) outbreak should be migrant-sensitive to take into account the unique challenges facing migrants.Publication Employment Regulation : Rules for Hiring and Termination(World Bank, Washington, DC, 2002-12)Employment protection - the set of rules governing hiring and terminating employees - is a key feature of any country's labor market. What types of contracts will be permitted between employers and employees? Under what conditions can the relationship be terminated? What are the requirements for providing advance notice? What are the obligations of the employer regarding severance or termination payments? These are important questions for policy-makers in addressing the trade-offs between labor market flexibility and the economic security of employed workers. A mix of cultural norms, collective bargaining, and legislation determines employment protection practices in any country. This primer note focuses on the statutory regulations affecting employment protection. It provides a basic overview of the policy options and a summary of what is known about their impacts on workers and on the labor market. It also addresses the institutional and political aspects of employment protection.Publication Labor Market Regulations : What Do We Know about Their Impacts in Developing Countries?(World Bank, Washington, DC, 2014-03)Labor market regulation is a high-profile, and often contentious, area of public policy. Although these regulations have been studied most extensively in developed countries, there is a growing body of literature on their effects in developing countries. This paper reviews that literature and focuses on the impacts of two important types of labor market regulation, minimum wages and employment protection legislation (EPL), on employment, earnings, and productivity. Strong and opposing views exist regarding the costs and benefits of these regulations, but the results of this review suggest that their impacts are generally smaller than the heat of the debates would suggest. Efficiency effects are found sometimes, but not always, and the effects can be in either direction and are usually modest. The distributional impacts of both minimum wage and employment protection legislation are clearer, with two effects predominating: an equalizing effect among covered workers, but with groups such as youth, women, and the less skilled disproportionately outside the coverage and its benefits. Although the overall conclusion is one of modest effects in most cases, the policy implication is not that these regulations do not matter. On the one hand, both minimum wages and EPL can affect distributional objectives. On the other hand, these regulations can generate undesirable economic or social impacts if they are established or operate in ways that exacerbate the labor market imperfections that they were designed to address.Publication From Red to Gray : The "Third Transition" of Aging Populations in Eastern Europe and the Former Soviet Union(Washington, DC: World Bank, 2007)This report focuses on the challenges that the region's aging countries will now face in having to deal with multiple transitions. It argues that their task ahead, though uniquely daunting, is by no means impossible. Indeed, many of the potential problems can be addressed through sensible and thoughtful policies that can be enacted over the next few years. The only danger likely lies in complacency, in not being proactive in addressing the challenges. This report finds, first, that some of the concerns about aging in Eastern European and Former Soviet countries are probably misplaced. Second, the analysis in the report validates concerns about future fiscal strains in some of the region's aging countries, but finds that many of the drivers of higher future public expenditures are unrelated to aging. This report is particularly focused on the future-a future in the region that is critically dependent on actions that countries and societies take now, and over the next few years. The report sends two central messages, which are analyzed against the different patterns of aging across the region. Red light to green light: Growing older does not have to mean growing slower. Aging is not a stop sign for growth-if countries enact policies that boost productivity and labor force participation. Red ink to black ink: Waging sensible policies can ease aging's spending impact. The policies needed to manage much of the expected jump in public spending-especially the impacts on pensions and on health care-are well known. They need only to be enacted and implemented.
Users also downloaded
Showing related downloaded files
Publication Digital Africa(Washington, DC: World Bank, 2023-03-13)All African countries need better and more jobs for their growing populations. "Digital Africa: Technological Transformation for Jobs" shows that broader use of productivity-enhancing, digital technologies by enterprises and households is imperative to generate such jobs, including for lower-skilled people. At the same time, it can support not only countries’ short-term objective of postpandemic economic recovery but also their vision of economic transformation with more inclusive growth. These outcomes are not automatic, however. Mobile internet availability has increased throughout the continent in recent years, but Africa’s uptake gap is the highest in the world. Areas with at least 3G mobile internet service now cover 84 percent of Africa’s population, but only 22 percent uses such services. And the average African business lags in the use of smartphones and computers as well as more sophisticated digital technologies that catalyze further productivity gains. Two issues explain the usage gap: affordability of these new technologies and willingness to use them. For the 40 percent of Africans below the extreme poverty line, mobile data plans alone would cost one-third of their incomes—in addition to the price of access devices, apps, and electricity. Data plans for small- and medium-size businesses are also more expensive than in other regions. Moreover, shortcomings in the quality of internet services—and in the supply of attractive, skills-appropriate apps that promote entrepreneurship and raise earnings—dampen people’s willingness to use them. For those countries already using these technologies, the development payoffs are significant. New empirical studies for this report add to the rapidly growing evidence that mobile internet availability directly raises enterprise productivity, increases jobs, and reduces poverty throughout Africa. To realize these and other benefits more widely, Africa’s countries must implement complementary and mutually reinforcing policies to strengthen both consumers’ ability to pay and willingness to use digital technologies. These interventions must prioritize productive use to generate large numbers of inclusive jobs in a region poised to benefit from a massive, youthful workforce—one projected to become the world’s largest by the end of this century.Publication Digital innovation in SMEs(Taylor and Francis, 2021-03-09)This paper presents a systematic literature review on digital innovation in Small and Medium-sized Enterprises (SMEs). It aims to synthesize previous research and identify knowledge gaps and future research opportunities. A systematic review of the literature was carried out by analyzing 382 articles published between 1979 and 2019. From synthesizing the extant literature, we developed a theoretical framework advocating that digital innovation in SMEs is driven by a configuration of antecedents, goes through different stages of innovation process, and leads to organizational and business process performance outcomes. Using an in-depth content analysis, we discuss the examined digital technologies, theories underpinning digital innovation in SMEs research, contextual orientations, and the content of research in this field. This review identifies significant knowledge gaps in relation to theory, context, method and content.Publication Deliberate Disengagement(Cambridge University Press, 2016-08)A large literature examining advanced and consolidating democracies suggests that education increases political participation. However, in electoral authoritarian regimes, educated voters may instead deliberately disengage. If education increases critical capacities, political awareness, and support for democracy, educated citizens may believe that participation is futile or legitimizes autocrats. We test this argument in Zimbabwe—a paradigmatic electoral authoritarian regime—by exploiting cross-cohort variation in access to education following a major educational reform. We find that education decreases political participation, substantially reducing the likelihood that better-educated citizens vote, contact politicians, or attend community meetings. Consistent with deliberate disengagement, education’s negative effect on participation dissipated following 2008’s more competitive election, which (temporarily) initiated unprecedented power sharing. Supporting the mechanisms underpinning our hypothesis, educated citizens experience better economic outcomes, are more interested in politics, and are more supportive of democracy, but are also more likely to criticize the government and support opposition parties.Publication Forced Migration, Social Cohesion and Conflict(World Bank, Washington, DC, 2022-01)In 2015, Germany welcomed close to one million asylum seekers and refugees from Syria, Afghanistan, the Western Balkans and elsewhere. Although the country was often praised for its welcome culture, the inflow has spurred a debate about identity, social cohesion and the limits of multiculturalism. This paper analyzes the effect of this inflow on various dimensions of social cohesion. To separate causation from correlation, it exploits the fact that asylum seekers in Germany are allocated to local areas based on an area’s tax revenues and population several years prior. Therefore, the allocation is unrelated to current economic, political or social conditions. Based on survey data as well as data scraped from newspapers, the paper documents two sets of results. First, it finds no effect on self-reported indicators of trust and perceived fairness, and a small negative effect on and attitudes towards immigrants. In contrast, it finds that the refugee inflow led to an increased incidence of anti-immigrant violence that lasted for about two years. This increase is larger in areas with higher unemployment and greater support for right-wing parties.Publication Africa's Cities(Washington, DC: World Bank, 2017-02-09)Cities in Sub-Saharan Africa are experiencing rapid population growth. Yet their economic growth has not kept pace. Why? One factor might be low capital investment, due in part to Africa’s relative poverty: Other regions have reached similar stages of urbanization at higher per capita GDP. This study, however, identifies a deeper reason: African cities are closed to the world. Compared with other developing cities, cities in Africa produce few goods and services for trade on regional and international markets To grow economically as they are growing in size, Africa’s cities must open their doors to the world. They need to specialize in manufacturing, along with other regionally and globally tradable goods and services. And to attract global investment in tradables production, cities must develop scale economies, which are associated with successful urban economic development in other regions. Such scale economies can arise in Africa, and they will—if city and country leaders make concerted efforts to bring agglomeration effects to urban areas. Today, potential urban investors and entrepreneurs look at Africa and see crowded, disconnected, and costly cities. Such cities inspire low expectations for the scale of urban production and for returns on invested capital. How can these cities become economically dense—not merely crowded? How can they acquire efficient connections? And how can they draw firms and skilled workers with a more affordable, livable urban environment? From a policy standpoint, the answer must be to address the structural problems affecting African cities. Foremost among these problems are institutional and regulatory constraints that misallocate land and labor, fragment physical development, and limit productivity. As long as African cities lack functioning land markets and regulations and early, coordinated infrastructure investments, they will remain local cities: closed to regional and global markets, trapped into producing only locally traded goods and services, and limited in their economic growth.