European Union pp 231-249 | Cite as

Labour Market Duality Under the Insider-Outsider Theory, Labour Division, Rent-Seeking, and Clientelism

The Case of a European Union Member Country
  • Achilleas AnagnostopoulosEmail author
  • Pyrros Papadimitriou


This chapter presents the labour market duality and its persistence in Southern European countries. We examine the insider-outsider theory which shows that insiders, workers with permanent contracts and high job security use their insider market power and political influence to underbid the outsiders. Then, we focus on Greece and how its labour market institutions are linked with the context of insider-outsider model which is not a recent phenomenon. Moreover, we describe the introduction of major labour reforms during Greek recession, which eased employment protection legislation (EPL), increased flexibility on working arrangements, decentralized collective bargaining system and reduced labour cost. The chapter concludes by discussing how the deregulation plan of the Greek labour market may provide an exit from the crisis and reducing precarious work.


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Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Achilleas Anagnostopoulos
    • 1
    Email author
  • Pyrros Papadimitriou
    • 2
  1. 1.University of ThessalyLarissaGreece
  2. 2.University of PeloponneseKorinthosGreece

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