Institutional Change in South European Labour Markets in the Shadow of the Troika

This paper seeks to map and compare change in labour markets institutions in Spain, Italy, Portugal and Greece in the aftermath of the financial crisis. While the extent of austerity policies in terms of fiscal retrenchment in these countries has been the subject of much interest, we still lack an overall picture of change in the areas of employment protection, income compensation, minimum wages, education and collective bargaining , and how reforms pushed by international financial institutions have reshaped institutional complementarities. Contradicting arguments supporting the idea that markets adapt more quickly than top-down political control, we show how greater state intervention prior to the crisis fostered swifter change in the face of private sector resistance, even on the side of employers.