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The effects of minimum wages on wages and employment

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  • Costas N. Kanellopoulos

    (Bank of Greece)

Abstract

This study analyses the relationship between minimum wages, average wages and employment in the Greek private sector throughout the past decade, using published IKA data on employment and wages, as well as data on minimum statutory wages. It appears that minimum wages affect a substantial proportion of employees in the Greek private sector, especially in certain industries and in small firms (employing less than 10 workers). The analysis shows that minimum wages affect the average wages of both males and females and that increases in minimum wages affect the employment of both genders.

Suggested Citation

  • Costas N. Kanellopoulos, 2015. "The effects of minimum wages on wages and employment," Economic Bulletin, Bank of Greece, issue 41, pages 7-29, July.
    • Handle: RePEc:bog:econbl:y:2015:i:41:p:7-29
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    File URL: https://www.bankofgreece.gr/BogEkdoseis/econbull201507.pdf
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Georgios Gatopoulos & Alexandros Louka & Ioannis Polycarpou & Nikolaos Vettas, 2021. "Evaluating the Impact of Labour Market Reforms in Greece during 2010-2018," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 156, Hellenic Observatory, LSE.
    2. Styliani Belli & Constantina Backinezos, 2016. "The transition to the new methodology for the compilation of balance of payments statistics – BPM6," Economic Bulletin, Bank of Greece, issue 43, pages 19-29, July.
    3. repec:bog:econbl:y:2016:i:43:p:19-29 is not listed on IDEAS
    4. Christos Papazoglou & Dimitrios Sideris & Orestis Tsagklas, 2016. "Europe as an optimum currency area: the experience of the Baltic countries," Economic Bulletin, Bank of Greece, issue 44, pages 35-46, December.
    5. repec:bog:econbl:y:2016:i:43:p:55-75 is not listed on IDEAS
    6. Sofia Anyfantaki, 2016. "The evolution of financial technology (FinTech)," Economic Bulletin, Bank of Greece, issue 44, pages 47-62, December.
    7. Andreas Georgiadis & Ioannis Kaplanis & Vassilis Monastiriotis, 2018. "Greece after the Bailouts: The Impact of Minimum Wages on Wages and Employment: Evidence from Greece," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 131, Hellenic Observatory, LSE.
    8. Nikos Vettas & Ioannis Giotopoulos & Evangelia Valavanioti & Svetoslav Danchev, 2016. "The determinants of new firms’ export performance," Economic Bulletin, Bank of Greece, issue 43, pages 7-17, July.
    9. repec:bog:econbl:y:2016:i:43:p:31-53 is not listed on IDEAS
    10. Konstantina Manou & Evangelia Papapetrou, 2016. "The economic behaviour of households in Greece: recent developments and prospects," Economic Bulletin, Bank of Greece, issue 44, pages 7-33, December.
    11. Sophia Lazaretou, 2016. "The Greek brain drain: the new pattern of Greek emigration during the recent crisis," Economic Bulletin, Bank of Greece, issue 43, pages 31-53, July.
    12. repec:bog:econbl:y:2016:i:43:p:7-17 is not listed on IDEAS
    13. Georgiadis, Andreas & Kaplanis, Ioannis & Monastiriotis, Vassilis, 2018. "The impact of minimum wages on wages and employment: evidence from Greece," LSE Research Online Documents on Economics 91959, London School of Economics and Political Science, LSE Library.
    14. Bechlioulis, Alexandros & Chletsos, Michael, 2021. "The differentiated effects of minimum wage reforms on unemployment Evidence from the Greek labor market," MPRA Paper 109327, University Library of Munich, Germany.
    15. Andriopoulou Eirini & Karakitsios Alexandros, 2022. "Unemployment transitions and the role of minimum wage: From pre-crisis to crisis and recovery," IZA Journal of Labor Policy, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 12(1), pages 1-26, January.
    16. Faidon Kalfaoglou, 2016. "Bank recapitalisation: a necessary but not sufficient condition for resuming lending," Economic Bulletin, Bank of Greece, issue 43, pages 55-75, July.
    17. Ioannis Chatzivasiloglou, 2016. "Introduction to solvency ii of (re)insurance undertakings," Economic Bulletin, Bank of Greece, issue 44, pages 63-103, December.

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    More about this item

    Keywords

    minimum wages; average wages; employment effects;
    All these keywords.

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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