DP 147 exof 200x294


I. Cholezas, N.C. Kanellopoulos. 2016.


DP 147 exof 200x294Women in Greece traditionally face higher unemployment rates compared with men, a phenomenon known as gender unemployment gap. Analyzing this gap in a certain labor market requires the use of detailed individual micro data, which we draw from the quarterly Labor Force Surveys. In order to decompose the observed unemployment gap to its components, we trace the determining factors of the probability of unemployment by gender. Our results reveal that, during the recession, the unexplained component of the gap decreased, perhaps as part of a rationalization process in the labor market. The detailed decomposition of the unemployment gap suggests the importance of prior employment status, which however varies significantly by industry, along with other variables, such as age, education and often ethnicity. Furthermore, the unemployment gap seems to be correlated with certain institutional features of the Greek labor market, such as the strictness of employment protection regulations. These findings have important policy implications.