Abstract

By employing a highly educated workforce and providing, on average, better employment and working conditions than the private sector, the public sector has been a traditional nurturer of the middle classes in Greece. This role was neutralised by the harsh austerity policies that are being implemented since 2010 and are responsible for the Greek Great Depression. The public sector as an employer is under attack and welleducated young people - especially women - are prevented from entering and joining the middle classes. On the other hand, the public sector has contributed to the resilience of the middle classes under austerity. In spite of the erosion in publicsector wage and pension premiums and the narrowing of public-private differentials, better working conditions for the employees and better pensions for those retiring have been preserved.