Austerity, Labor Market Reform and the Growth of Precarious Employment in Greece during the Eurozone Crisis

Abstract

This article examines the relationship between structural reforms commonly referred to as austerity and the growth of precarious labour in Greece. It argues that, in contrast to the proponents of labour market flexibility, the liberalisation of labour markets, employment protection systems, social protection systems and collective bargaining institutions have not increased employment in Greece or minimised the growth of precarious employment. Rather, liberalising structural reforms have resulted in the creation of the very precarity its proponents claim is the product of rigid labour markets, and they have failed to significantly reduce existing levels of unemployment and increasing employment rates.