Minimum Wage and Unemployment in Greek Labour Market: A Descriptive Analysis

Abstract

The purpose of this paper is to investigate the relationship between the minimum wage level and the rates of unemployment and employment in the Greek labour market. More specifically, this study analyses the evolution of the minimum wage during the period 2000-2013 and also whether these changes have really affected the unemployment and employment rates or not. The main conclusion of our study supports several other studies conclusions suggesting that the level of minimum wage in Greece did not really affect the unemployment and employment rates. The views of economists on effect of the establishing of minimum wages are quite contradictory. The evaluation of relationship between labour market and minimum wage rate is either positive or negative or even not related at all, depending on the assumptions about characteristics of labour market.