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2005 OECD Economic Surveys: Greece 2005

image of OECD Economic Surveys: Greece 2005

This 2005 edition of OECD's periodic survey of Greece's economy examines two key challenges: the need for sustained fiscal consolidation and closing the income gap with the European Union. After an examination of major economic trends, the Survey looks in more detail at the fiscal challenge and at raising productivity and labour force participation. This edition's special chapter looks at the economic impact of migration in Greece.

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Raising Labour Force Participation and Employment Rates

This chapter discusses a number of features of the labour market which are particularly important for raising labour force participation and employment rates, which would improve Greece’s long-term economic performance and help speed economic and social convergence with European Union member countries. These are: the flexibility of the wage system; non-wage labour costs; employment protection provisions; labour mobility; active labour market policies; and the stock of human capital. The chapter concludes with a box (Box 4.3) summarising recent progress in labour market reforms and main recommendations for further policy action.

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