Nikiforos, M., "The café economy: Structural transformation in Greece in the wake of austerity and “reforms”"
Wednesday, 24 September 2025
Title: The café economy: Structural transformation in Greece in the wake of austerity and “reforms”
Speaker: Associate Professor Michalis Nikiforos, Department of History, Economics and Society, University of Geneva
Host: Assistant Professor Kospentaris Ioannis, Department of Economics, Athens University of Economics and Business
Time: 13.30 -15.00
Room: 76, Patission Str., Antoniadou Wing, 3rd floor, Room A36
Attachments: 
PDF of Relevant Paper
Abstract: This paper investigates the structural transformation of the Greek economy over the past fifteen years, focusing on the increasing dominance of the Accommodation and Food Service Activities (AFSA) sector in the aftermath of austerity and structural reforms. Despite promises of productivity gains through labor market and product market reforms, the Greek economy has experienced a sharp decline in labor productivity and a significant reallocation of employment towards low-productivity sectors, especially AFSA, reminiscent of a Lewis-type dual sector economy. Using a simple Panel-VAR model we find that declining aggregate demand and real wages were key drivers of this productivity collapse. Our findings support theories of technological change that emphasize output growth and the cost of labor as fundamental determinants of productivity growth.
