Employment Effects of Environmental Policies in Greece

Abstract

The international literature on the impact of environmental policies on employment has almost exclusively dealt with the experience of industrialized countries. Evidence from Greece, for the period 1983–87, suggests that environmental programs initiated by the government in an attempt to alleviate fundamental ecological imbalances and support the declining private sector were self-regulatory. This was based on deficit financing and has affected employment positively. Regarding qualitative aspects of generated employment, low-skill — low-wage workers have been favored, owing to the nature of environmental programs undertaken. This picture, however, is expected to reverse soon, calling for immediate action to sustain employment in this nonindustrialized country.