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Job creation and job destruction in economic crisis at firm level: the case of Greek manufacturing sectors

Author

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  • F. Voulgaris
  • G. Agiomirgianakis
  • T. Papadogonas
Abstract
The current European economic crisis changes radically the structure of present and future employment, the political agenda and the adoption of appropriate economic policy means in the whole Europe. This is mostly true for southern European countries that were hit hard by economic crisis and thus raising questions about the appropriate policy mix required in supporting employment. In Greece, for example, the problem of unprecedented large unemployment (27 %) by summer 2013, is an urgent issue dominating in all current discussions related to adoption of the best economic policy means. Often, these discussions are focused on some general macroeconomic policy suggestions that are not based on a microeconomic analysis of how firms are affected by economic crisis, not only, in the same sector, but also, in different sectors of the economy. In this study, we explore the determinants of job creation and job destruction using a large and comprehensive panel data set of Greek manufacturing firms, covering the time period 2004 – 2011 and distinguishing between the pre-crisis (2004–2007) and post-crisis (2008–2011) period. Our study reveals that, although the crisis has indeed a substantial negative effect on employment growth in all sectors of Greek manufacturing, some sectors (such as food products) are less affected compared to others (especially textiles, wearing apparel and leather products). Thus, our results suggest that a discretionary microeconomic policy that could encourage production and exports, with such measures as tax reductions, investment subsidies, export grants, etc., in favour of the less affected sectors could contribute to reducing large unemployment. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • F. Voulgaris & G. Agiomirgianakis & T. Papadogonas, 2015. "Job creation and job destruction in economic crisis at firm level: the case of Greek manufacturing sectors," International Economics and Economic Policy, Springer, vol. 12(1), pages 21-39, March.
    • Handle: RePEc:kap:iecepo:v:12:y:2015:i:1:p:21-39
    DOI: 10.1007/s10368-014-0287-6
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    References listed on IDEAS

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    Cited by:

    1. Prodromos Chatzoglou & Dimitrios Chatzoudes & Zografia Petrakopoulou & Elena Polychrou, 2018. "Plant location factors: a field research," OPSEARCH, Springer;Operational Research Society of India, vol. 55(3), pages 749-786, November.
    2. RUSU Valentina Diana & ROMAN Angela, 2016. "The Impact Of Macroeconomic Conditions On Smes Performance In Terms Of Employment," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 68(3), pages 142-159, December.
    3. Christofakis Manolis & Gaki Eleni & Lagos Dimitrios, 2019. "The impact of economic crisis on regional disparities and the allocation of economic branches in Greek regions," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 44(44), pages 7-21, June.
    4. KONTOGEORGOS, Achilleas & PENDARAKI, Konstantina & CHATZITHEODORIDIS, Fotios, 2017. "Economic Crisis And Firms’ Performance: Empirical Evidence For The Greek Cheese Industry," Revista Galega de Economía, University of Santiago de Compostela. Faculty of Economics and Business., vol. 26(1), pages 73-82.
    5. Consuela-Elena POPESCU & Alexandra HOROBET & Georgiana Vrinceanu & Lucian BELASCU, 2021. "Business recovery in the European Union after the global financial crisis: lessons for the Coronavirus pandemic," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 12, pages 231-249, August.
    6. Demetrius Papathanasiou & Prodromos Prodromidis & Athanasia Zovoili, 2020. "Business Size, Numbers, Production Value and Productivity Trends in Manufacture and Mining-Quarrying across the EU, 2008-2017," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 82-106.

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    More about this item

    Keywords

    Industry study; Dynamic growth; Manufacturing; Financial performance; C23; D21; G32; J23; L11; L6;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L6 - Industrial Organization - - Industry Studies: Manufacturing

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