IDEAS home Printed from https://ideas.repec.org/a/bog/econbl/y2015i41p7-29.html
   My bibliography  Save this article

The effects of minimum wages on wages and employment

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://www.bankofgreece.gr/BogEkdoseis/econbull201507.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Vasilios Manesiotis, 2011. "Numerical fiscal rules in practice," Economic Bulletin, Bank of Greece, issue 35, pages 7-13, June.
    2. Panagiota Tzamourani, 2013. "The Household Finance Survey: description of the 2009 survey and main results on households’ income, wealth and debt in Greece," Economic Bulletin, Bank of Greece, issue 38, pages 85-101, November.
    3. Theodoros S. Papaspyrou, 2004. "EMU strategies for new Member States: the role of Exchange Rate Mechanism II," Economic Bulletin, Bank of Greece, issue 23, pages 7-25, July.
    4. Mitrakos Theodore, 2008. "Child Poverty: Recent Developments and Determinants," Economic Bulletin, Bank of Greece, issue 30, pages 57-85, May.
    5. Faidon Kalfaoglou, 2011. "The usefulness of stress testing exercise for assessing the soundness of the banking system," Economic Bulletin, Bank of Greece, issue 35, pages 25-46, June.
    6. Evangelia Papapetrou & Dimitrios Bakas, 2013. "The Greek labour market during the crisis: unemployment, employment and labour force participation," Economic Bulletin, Bank of Greece, issue 38, pages 65-83, November.
    7. Daphne Nicolitsas, 2005. "Per capita income, productivity and labour market participation: recent developments in Greece," Economic Bulletin, Bank of Greece, issue 25, pages 37-60, August.
    8. Evangelia Papapetrou, 2007. "Education, labour market and wage differentials in Greece," Economic Bulletin, Bank of Greece, issue 28, pages 51-73, February.
    9. Pavlos Petroulas, 2008. "Foreign Direct Investment in Greece: Productivity and Spillover effects," Economic Bulletin, Bank of Greece, issue 31, pages 31-48, November.
    10. Panayiotis P. Athanasoglou & Ioannis G. Asimakopoulos & Evangelia A. Georgiou, 2005. "The effect of merger and acquisition announcement on Greek bank stock returns," Economic Bulletin, Bank of Greece, issue 24, pages 27-44, January.
    11. Maria K. Albani & Nicholas G. Zonzilos & Zacharias G. Bragoudakis, 2007. "An operational framework for the short-term forecasting of inflation," Economic Bulletin, Bank of Greece, issue 29, pages 89-106, October.
    12. Costas N. Kanellopoulos, 2012. "Employment and worker flows during the financial crisis," Economic Bulletin, Bank of Greece, issue 36, pages 31-41, April.
    13. Evangelia Papapetrou, 2004. "Gender Wage Differentials in Greece," Economic Bulletin, Bank of Greece, issue 23, pages 47-64, July.
    14. Zacharias Bragoudakis & Stelios Panagiotou, 2010. "Determinants of the receipts from shipping services: the case of Greece," Economic Bulletin, Bank of Greece, issue 34, pages 41-55, September.
    15. Costas N. Kanellopoulos, 2014. "The private sector Greek labour market during the crisis," Economic Bulletin, Bank of Greece, issue 39, pages 21-36, July.
    16. Petros M. Migiakis, 2012. "Reviewing the proposals for common bond issuances by the euro-area sovereign under a long-term perspective," Economic Bulletin, Bank of Greece, issue 37, pages 43-54, December.
    17. Theodore M. Mitrakos, 2004. "Education and economic inequalities," Economic Bulletin, Bank of Greece, issue 23, pages 27-46, July.
    18. Heather D. Gibson, 2005. "Greek Banking Profitability: recent developments," Economic Bulletin, Bank of Greece, issue 24, pages 7-25, January.
    19. Christos Papazoglou, 2009. "Is Greece's export performance really low?," Economic Bulletin, Bank of Greece, issue 32, pages 27-37, May.
    20. Tassos Anastasatos & Constantina Manou, 2008. "Speculative Attacks on the Drachma and the Changeover to the Euro," Economic Bulletin, Bank of Greece, issue 31, pages 49-77, November.
    21. Theodore M. Mitrakos & Nicholas G. Zonzilos, 2006. "The impact of exogenous shocks on the dynamics and persistence of inflation: a macroeconomic model-based approach for Greece," Economic Bulletin, Bank of Greece, issue 26, pages 37-57, January.
    22. Costas N. Kanellopoulos, 2012. "The Size and structure of uninsured employment," Economic Bulletin, Bank of Greece, issue 37, pages 23-41, December.
    23. Theodoros Mitrakos & Panos Tsaklogou & Ioannis Cholezas, 2010. "Determinants of the wage rates in Greece with an emphasis on the wages of tertiary education graduates," Economic Bulletin, Bank of Greece, issue 34, pages 7-40, September.
    24. J. Tobin, 1958. "Liquidity Preference as Behavior Towards Risk," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 25(2), pages 65-86.
    25. Daphne Nicolitsas, 2011. "On-the-job training in Greece: a brief overview," Economic Bulletin, Bank of Greece, issue 35, pages 47-76, June.
    26. Evangelia Vourvachaki, 2013. "Structural reform of the road haulage sector," Economic Bulletin, Bank of Greece, issue 38, pages 21-32, November.
    27. Theodore M. Mitrakos & Georgios Th Simigiannis & Panagiota G. Tzamourani, 2005. "Indebtedness of Greek households: evidence from a survey," Economic Bulletin, Bank of Greece, issue 25, pages 13-35, AUgust.
    28. Sophia Lazaretou, 2014. "The smart economy: cultural and creative industries in Greece. Can they be a way out of the crisis? (in Greek)," Working Papers 175, Bank of Greece.
    29. Anastasios Evgenidis & Costas Siriopoulos, 2015. "What are the International Channels Through Which a US Policy Shock is Transmitted to The World Economies? Evidence from a Time Varying FAVAR," Working Papers 190, Bank of Greece.
    30. Nikos P. karabalis & Euripides K. Kondelis, 2007. "Inflation Measurement in Greece," Economic Bulletin, Bank of Greece, issue 28, pages 83-95, February.
    31. Ioannis Cholezas & Nikolaos C Kanellopoulos & Theodoros Mitrakos & Panos Tsakloglou, 2013. "The impact of the current crisis on private returns to education in Greece," Economic Bulletin, Bank of Greece, issue 38, pages 33-63, November.
    32. Daphne Nicolitsas, 2006. "Female labour force participation in Greece: developments and determining factors," Economic Bulletin, Bank of Greece, issue 26, pages 7-35, January.
    33. Nikos G. Zonzilos & Zacharias G. Bragoudakis & Georgia I. Pavlou, 2009. "An analysis of the reliability of first (flash) quarterly national account data releases for Greece," Economic Bulletin, Bank of Greece, issue 32, pages 39-51, May.
    34. George A. Christodoulakis, 2007. "The evolution of credit risk: phenomena, methods and management," Economic Bulletin, Bank of Greece, issue 28, pages 75-82, February.
    35. Nikos P Karabalis & Euripides K. Kondelis, 2004. "Alterative Measures of Inflation," Economic Bulletin, Bank of Greece, issue 22, pages 67-78, January.
    36. Theodore Mitrakos & Stauros Zografakis, 2005. "The redistributional impact of inflation in Greece," Economic Bulletin, Bank of Greece, issue 24, pages 45-82, January.
    37. Papaspyrou Theodoros, 2012. "EMU sustainability and the prospects of peripheral economies," Economic Bulletin, Bank of Greece, issue 36, pages 7-29, April.
    38. Zacharias Bragoudakis & Dimitrios Sideris, 2012. "Do retail gasoline prices adjust symmetrically to crude oil price changes? the case of the Greek oil market," Economic Bulletin, Bank of Greece, issue 37, pages 7-21, December.
    39. Anastasia Litina & Theodore Palivos, 2015. "Corruption and Tax Evasion: Reflections on Greek Tragedy," Working Papers 193, Bank of Greece.
    40. Asimakopoulos, Ioannis & Athanasoglou, Panayiotis & Siriopoulos, Konstantinos, 2006. "External financing, growth and capital structure," MPRA Paper 16451, University Library of Munich, Germany.
    41. George T. Simigiannis & Panagiota G. Tzamourani, 2007. "Borrowing and socio-economic characteristics of households: results of sample surveys carried out by the Bank of Greece," Economic Bulletin, Bank of Greece, issue 28, pages 31-50, February.
    42. Sophocles N. Brissimis & Thomas Vlassopoulos, 2007. "Determinants of bank interest rates and comparisons between Greece and the euro area," Economic Bulletin, Bank of Greece, issue 28, pages 7-30, February.
    43. Evangelos Th. Pantelidis & Georgios A. Kouvatseas, 2006. "Frontier Survey on Travel Expenditure: methodology, presentation and output assessment (2003-2005)," Economic Bulletin, Bank of Greece, issue 27, pages 63-106, July.
    44. Theodoros M. Mitrakos & George T. Simigiannis, 2009. "The determinants of Greek household indebtedness and financial stress," Economic Bulletin, Bank of Greece, issue 32, pages 7-26, May.
    45. Hiona Balfoussia & Heather Gibson, 2010. "Inflation and Nominal Uncertainty: the case of Greece," Economic Bulletin, Bank of Greece, issue 33, pages 63-78, May.
    46. Vassilis Th. Rapanoss & Georgia Kaplanoglou, 2010. "Independent Fiscal Councils and Their Possible Role in Greece," Economic Bulletin, Bank of Greece, issue 33, pages 7-20, May.
    47. Daphne Nicolitsas, 2007. "Youth participation in the Greek labour market: developments and obstacles," Economic Bulletin, Bank of Greece, issue 29, pages 37-88, October.
    48. Faidon Kalfaoglou, 2006. "Stress Testing of the Greek Banking System," Economic Bulletin, Bank of Greece, issue 27, pages 43-62, July.
    49. Theodore Mitrakos & Daphne Nicolitsas, 2006. "Long-term Unemployment in Greece: developments, incidence and composition," Economic Bulletin, Bank of Greece, issue 27, pages 7-41, July.
    50. Dimitrios P. Louzis & Angelos T. Vouldis, 2015. "Profitability in the Greek Banking System: a Dual Investigation of Net Interest and Non-Interest Income," Working Papers 191, Bank of Greece.
    51. Faidon Kalfaoglou, 2012. "Bank capital adequacy framework," Economic Bulletin, Bank of Greece, issue 36, pages 43-81, April.
    52. Nikos Karabalis & Euripides Kondelis, 2013. "Indirect tax increases and their impact on inflation over 2010 – 2012," Economic Bulletin, Bank of Greece, issue 38, pages 7-19, November.
    53. Balfoussia Hiona, 2008. "Stock market integration-the athens exchange in the european financial market," Economic Bulletin, Bank of Greece, issue 30, pages 29-55, May.
    54. Petros M Migiakis, 2010. "Determinants of the Greek stock-bond correlation," Economic Bulletin, Bank of Greece, issue 33, pages 79-90, May.
    55. Panayiotis Kapopoulos & Sophia Lazaretou, 2007. "Foreign bank presence: the experience of South-East European countries during the transition process," Economic Bulletin, Bank of Greece, issue 29, pages 7-35, October.
    56. Heather Gibson & Hiona Balfoussia, 2010. "The impact of nominal and real uncertainty on macroeconomic aggregates in Greece," Economic Bulletin, Bank of Greece, issue 34, pages 57-71, September.
    57. Sophia Lazaretou, 2014. "The smart economy: cultural and creative industries in Greece: can they be a way out of the crisis?," Economic Bulletin, Bank of Greece, issue 39, pages 73-103, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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. 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.
    5. 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.
    6. repec:bog:econbl:y:2016:i:43:p:55-75 is not listed on IDEAS
    7. Sofia Anyfantaki, 2016. "The evolution of financial technology (FinTech)," Economic Bulletin, Bank of Greece, issue 44, pages 47-62, December.
    8. 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.
    9. 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.
    10. 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.
    11. repec:bog:econbl:y:2016:i:43:p:31-53 is not listed on IDEAS
    12. 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.
    13. Ioannis Chatzivasiloglou, 2016. "Introduction to solvency ii of (re)insurance undertakings," Economic Bulletin, Bank of Greece, issue 44, pages 63-103, December.
    14. 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.
    15. repec:bog:econbl:y:2016:i:43:p:7-17 is not listed on IDEAS
    16. 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.
    17. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sofia Lazaretou, 2015. "How can the use of historical macroeconomic data series support economic analysis and policy-making? The new Greek macro history database 1833-1949 as part of the large database of Southeastern Europe," Economic Bulletin, Bank of Greece, issue 41, pages 71-101, July.
    2. Evangelia Georgiou, 2015. "The use of cash and electronic payment instruments in the economy," Economic Bulletin, Bank of Greece, issue 41, pages 31-44, July.
    3. Faidon Kalfaoglou, 2015. "Alternative approaches to NPLs resolution. Case studies," Economic Bulletin, Bank of Greece, issue 41, pages 45-70, July.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. Ioannis Chatzivasiloglou, 2016. "Introduction to solvency ii of (re)insurance undertakings," Economic Bulletin, Bank of Greece, issue 44, pages 63-103, December.
    11. Sofia Anyfantaki, 2016. "The evolution of financial technology (FinTech)," Economic Bulletin, Bank of Greece, issue 44, pages 47-62, December.
    12. Sophia Lazaretou, 2014. "The smart economy: cultural and creative industries in Greece: can they be a way out of the crisis?," Economic Bulletin, Bank of Greece, issue 39, pages 73-103, July.
    13. Faidon Kalfaoglou, 2014. "European banking union: “Europeanising” banks’ financial safety net," Economic Bulletin, Bank of Greece, issue 39, pages 37-72, July.
    14. Costas N. Kanellopoulos, 2014. "The private sector Greek labour market during the crisis," Economic Bulletin, Bank of Greece, issue 39, pages 21-36, July.
    15. Aikaterini Chaireti, 2014. "The housing situation of residents of Greece in the time of crisis 2008-2012," Economic Bulletin, Bank of Greece, issue 39, pages 105-141, July.
    16. Dimitra Dimitropoulou & Anastasia Koutsomanoli-Filippaki & Evangelos Charalambakis & Georgios Aggelis, 2014. "The financing of Greek enterprises before and during the crisis," Economic Bulletin, Bank of Greece, issue 39, pages 7-20, July.
    17. repec:bog:econbl:y:2016:i:43:p:31-53 is not listed on IDEAS
    18. repec:bog:econbl:y:2016:i:43:p:55-75 is not listed on IDEAS
    19. repec:bog:econbl:y:2016:i:43:p:19-29 is not listed on IDEAS
    20. repec:bog:econbl:y:2016:i:43:p:7-17 is not listed on IDEAS
    21. Petros M. Migiakis, 2012. "Reviewing the proposals for common bond issuances by the euro-area sovereign under a long-term perspective," Economic Bulletin, Bank of Greece, issue 37, pages 43-54, December.
    22. Costas N. Kanellopoulos, 2012. "The Size and structure of uninsured employment," Economic Bulletin, Bank of Greece, issue 37, pages 23-41, December.
    23. Zacharias Bragoudakis & Dimitrios Sideris, 2012. "Do retail gasoline prices adjust symmetrically to crude oil price changes? the case of the Greek oil market," Economic Bulletin, Bank of Greece, issue 37, pages 7-21, December.
    24. Costas N. Kanellopoulos, 2012. "Employment and worker flows during the financial crisis," Economic Bulletin, Bank of Greece, issue 36, pages 31-41, April.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bog:econbl:y:2015:i:41:p:7-29. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Anastasios Rizos (email available below). General contact details of provider: https://edirc.repec.org/data/boggvgr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.