In Greece, during the last four years, have been legislated and implemented a series of legislative provisions introducing
some significant structural changes in the Greek labour market. These changes had to do, among others, with the reduction
of minimum wage level compressing the labour cost companies in order to increase the employment rate. 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.
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.