Private returns to Education in the Greek labour market: unemployment-adjusted estimates


The relationship between the employment position(s) one has -as reflected by his/her remuneration- and the acquired level of education is well-established in literature. The crisis, itself, seems to have a remarkably great impact to policies which reform the labour market and affect educational investment decisions. The aim of this essay is to compare the private returns to education in the Greek labour market before (2008) and during (2014) the economic crisis taking into account the probability of unemployment. In fact, the latter, in 2014, does not appear to be affected by education. However, Human Capital Theory is confirmed since more years of schooling yield greater returns and, hence, income both before and during the crisis. Women enjoy greater returns than men tertiary graduates were less touched by the crisis since their income is significantly higher than the other educational groups albeit the increasing unemployment rate, especially for the youth.

Athens University of Economics & Business
Yannis Galanakis
Yannis Galanakis
Postdoctoral Research Associate