Labour market flows and unemployment dynamics by sex in Greece during the crisis

Although, during the current Greek crisis, male employment retreated much more than female employment, the gender unemployment gap remained remarkably stable. To explain this outcome we have analysed labour market flows by sex using descriptive statistics and counterfactual techniques. Empirical findings suggest that while men experienced more dramatically the labour demand shock of the crisis because its impact was harder on male-dominated sectors, their falling participation rate mitigated the rise in the male unemployment rate. Women were affected less than men by the labour demand shock, but inactive women joined the labour force in increasing numbers that boosted the female unemployment rate. We interpret supply-side responses in terms of the discouraged worker and added worker effects.