Migration and Unregistered Labour in the Greek Economy

Abstract

Despite the fact that Greece is far from being the most prosperous of the Southern European economies (in fact on many indicators it is the poorest of the four Southern EU countries), it has the highest proportion of immigrant workers — 500,000 according to some estimates, accounting for more than a tenth of the labour force. This chapter takes as its main theme the interaction between these mostly illegal immigrant workers and the Greek economy and labour market. The account is structured in six parts. First, a brief overview is made of Greek external migration trends since 1945. Secondly, I will examine the specific characteristics of the Greek economy and labour market, paying particular attention to the demand and supply of unskilled labour. Thirdly, the evolution of immigration into Greece is traced through the key role of network factors. Next, the wages and productivity of immigrant workers are described, using a variety of primary and secondary data sources. In the fifth section of the chapter I look at the effects of immigration on the Greek economy, including demographic and employment/unemployment effects. Sixthly, I turn to some policy considerations, which are updated in an epilogue on the very recent regularization process.