Wage reforms and equality gains: evidence from Greece

Bechlioulis, Alexandros P., Chletsos, Michael, Christou, Tryfonas and Karadimitropoulou, Aikaterini E. (2025) Wage reforms and equality gains: evidence from Greece. GreeSE Papers: Hellenic Observatory Discussion Papers on Greece and Southeast Europe (209). Hellenic Observatory, London School of Economics and Political Science, London, UK.

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Abstract

This paper examines whether minimum wage reforms affect income inequality among low-wage workers. We construct a novel “within-occupation” measure of wage dispersion, using a Greek dataset between 2010 and 2020. Using modern difference-in-differences analysis for causal inference, our findings show non-symmetrical effects on wage dispersion when a minimum wage reform is imposed. In particular, the minimum wage cut of 2012 did not alter the wage dispersion of low-wage workers, while the minimum wage increase of 2019 led to a decrease in wage inequality at the bottom segment of the labor market. Our paper equips policymakers with a solid understanding of the effects of minimum wage reforms on wage inequality and highlights the important role of wage rigidities in shaping these effects.

Item Type:	Monograph (Discussion Paper)
Official URL:	https://www.lse.ac.uk/hellenic-observatory/publica...
Additional Information:	© The Authors
Divisions:	Hellenic Observatory
Subjects:	H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HC Economic History and Conditions
JEL classification:	C - Mathematical and Quantitative Methods > C3 - Econometric Methods: Multiple; Simultaneous Equation Models; Multiple Variables; Endogenous Regressors > C31 - Cross-Sectional Models; Spatial Models; Treatment Effect Models J - Labor and Demographic Economics > J0 - General > J08 - Labor Economics Policies J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc.
Date Deposited:	29 Sep 2025 14:33
Last Modified:	29 Sep 2025 23:12
URI:	http://eprints.lse.ac.uk/id/eprint/129622

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