Human Capital and Production Structure in the Greek Economy

This chapter makes a first introduction to the concept of human capital which shows its importance for the development and growth of economies through a modern perspective. Human capital is roughly described, while the historical development of its concept by Adam Smith to date is presented. The central role attributed to human capital for the development of productivity and the growth of economies in the economic theory of the twentieth century is demonstrated. In addition, the relationship between human capital and knowledge and productivity is presented, which is the foundation for economic growth. The positive effect of human capital is demonstrated as it allows faster innovation and the adoption of new technologies, or leads to positive externalities between workers and generations. In conclusion, Becker’s theory of human capital is presented, which argues that education leads to higher wages and therefore higher labor productivity.

This chapter shows how human capital is related to the economic structure of a society, and how both usually differ from a country to another. Initially, a basic record of contemporary human capital theory is briefly executed. The observed differences in the accumulation of human capital at both national and international levels are noted and it is shown how different management policies are going to result in different results in terms of economic structure. At the same time, rapid technological change today, while reinforcing the importance of human capital, raises the question of what proper structure it should take. What are the required knowledge and skills today? To answer this question, this chapter goes deeper into the concept of human capital based on the different fields of application it may have (from the broadest to the narrowest: general, industry, professional, and firm level). Synthesizing these distinctions, task-specific human capital is established, through which the productive structure can be connected with the structure of human capital. Finally, the links between economic development and human capital are presented. Contrary to theorizing how the accumulation of the latter to lead to the former, we focus on how the refiguration of production structures affects human capital.

This chapter specifically presents how human capital requirements are affected by the economic structure, based on employment. Firstly, some basic concepts are presented which are necessary for any analysis of occupational information. Followingly, the basic cohesive elements that articulate human capital, the so-called occupational characteristics, and their consequent competencies are presented. As this chapter shows, these characteristics can be derived from various databases, which are compiled by national or international authorities. Next, the various forms of occupational characteristics are presented and grounded on occupational requirements and working activities. From the information in the aforementioned databases, we are focusing on the core of knowledge, skills, and abilities, which pose the main occupational requirements (popularized as KSAs). With regard to these general categories, a coherent conceptual framework is formed which can distinguish the various concepts from each other, notes their importance, but also shows the strong mutual relations that they have. This innovative framework is of great preliminary importance in the attempt of an in-depth analysis of the role that human capital plays in economies.

In this chapter, the focus is on how changes in the productive structure translate into different shapes of demand of human capital. This chapter aims to approach theoretically how the technological change, but also the changes in the production structure in general, affects the requirements in terms of occupational characteristics and the required skills. First, an overview of the effects of technology on occupational requirements is given and its general characteristics are described. This effect is then divided into two parts which are described and analyzed independently. The first concerns the external change of occupational characteristics, i.e., the change due to changes in the labor distribution which results in different needs of workforce characteristics. The remains of the change, or elseways said the residual of the former on the difference, are the internal change which concerns the change of the requirements of the professions themselves regardless of the division of labor. The latter also includes any requirement shifts arising from the organizational work environment. Therefore, even if technological change does not alter labor distribution, as it affects work processes, it is reflected in the overall occupational requirements. Both effects are analyzed in a macro-level to grasp current trends.

This chapter analyzes the Greek labor market by studying occupations, as well as the sectors of economic activity which employ these occupations. The restructuring of the production base of the Greek economy creates new conditions in the domestic labor market, while there are many external factors that also affect employment in the Greek economy, such as the COVID-19 pandemic, the digital transformation, and the decarbonization of the economy. This and the following chapters form an integral part of the study on the occupations of the Greek economy. This chapter analyzes the current conditions in the labor market and presents the methodology for conducting projections for its future course. In particular, an attempt is initially made to capture the effects of the economic cycle on employment and occupations, while examining the sectoral dimension of employment. Next, we present the methodological approach for estimating projections of key employment figures.

This chapter presents employment projections of sectors and occupations in the Greek economy under two different scenarios: a base scenario and an optimistic (upside) scenario which has higher investment from the impact of reforms that are expected to be implemented in the Greek economy. Each scenario is linked to a different trajectory of GDP, but also of its components, namely consumption, exports and investment. In this chapter, we analyze the evolution of employment at the level of sectors and occupational categories separately for each scenario. Both scenarios reveal the first effects of the pandemic. In greater detail, under the base scenario and over the period 2019–2027, employment is expected to strengthen most in wholesale trade and publishing activities, while it is projected to decline most in mining, waste management and fishing. In the upside scenario, the highest employment growth is projected to take place in legal and accounting activities—head offices—management consultancy, with forestry recording the strongest percentage decline. Correspondingly, in the occupations dimension, the highest growth is anticipated for sales workers and managers in hospitality-retail-services, while the strongest decline is projected for primary sector occupations.

The labor market is a volatile environment that supports economic activity though, it is directly affected by shifts in economic activity through the channels of labor supply and labor demand. These shifts are observable due to the changes in the relative demand for the occupations. Thus, the changes observed within these two channels can provide important information about the requirements within the labor market. This chapter analyzes the effects of the two major crises (2010, 2020) on the labor market by focusing on the conditions that impact the labor market. Furthermore, the Greek Labor market is being examined in terms of educational requirements for the period 2010–2025. The analysis elaborates on the need for reskilling and upskilling of the workforce as well as on the policy proposals that incorporate training and lifelong learning programs for the workforce.

In today’s ever-evolving society, knowledge is growing rapidly and labor market demands are constantly changing. Thus, the modernization of EU policy in the field of lifelong learning is a challenge for the Union in order to meet the great needs of upgrading the skills of the workforce but also its necessary specialization. These needs become more urgent as we strive to meet the challenges of the twenty-first century as well as the consequences of the 4th Industrial Revolution. It is an effort to support the recovery from the COVID-19 pandemic and to help build a more sustainable and resilient European Union. Lifelong learning is therefore considered necessary to strengthen the skills of the individual but also for the economy as a whole. It is also necessary for social and psychological reasons. It is a fact that education is closely linked to the freedom of the individual and the free will to evolve his abilities and skills. This chapter describes the above issues, presenting how lifelong learning is taking place in Europe and how policy actions on lifelong learning can lead to a restructuring of the European economies.

The purpose of this chapter is to analyze the knowledge requirements for production transformation in the aftermath of the 2010–2020 Greek economic crisis. The topic that the chapter is called to analyze is the following: The production structure of the Greek economy as reflected in 2018 in the sectors of the economy based on their employment has an equivalent in the professions that exist. Based on this analysis of professions, it is possible to identify the knowledge requirements that the Greek economy had in 2018 based on the structure of employment. This structure has the characteristics of the period after the crisis of 2011–2015 which was particularly strong for the country. Then, based on the available methodology and projecting the corresponding picture of employment and occupations for 2027, a new map of knowledge requirements for the new production structure can be identified, which is estimated to emerge in the year 2027. Thus, the differences in the two production structures can be identified, and any gaps that may arise can be predicted. The results of this analysis are of particular value for the design of formal, non-formal and informal education policy in order to facilitate the operation of the production model, to serve and possibly influence the restructuring of the production model.