Empirical analysis on the impact of labour market regulations on uninsured employment in Greece

Abstract

The impact of labour market regulations on uninsured employment in Greece between 2014 and 2019 is a crucial exploration in response to the pervasive challenge of undeclared work. With the rise of globalization and evolving labour dynamics, understanding and addressing the complexities of uninsured employment by analysing data from the Greek Ministry of Labour and Social Affairs was the main purpose of this study. Employing a comprehensive examination of key indicators, the study sought to evaluate the effectiveness of measures in curbing undeclared work. The pivotal strategies implemented by the Ministry of Labour and Social Affairs during the specified period were analysed using statistical analysis, focusing on high fines, reduced non-salary costs, the ERGANI information system, and a modernized fines framework. Statistical graphs were utilized to examine trends, providing a solid foundation for evaluating the impact of the implemented strategies. Qualitative assessments were employed to offer a nuanced understanding of the contextual factors influencing the outcomes. The findings reveal a positive trend, showcasing a significant reduction in undeclared workers and non-compliant businesses, underscoring the effectiveness of the implemented measures. An examination of 237,455 businesses in Greece over the period 2014-2019 revealed that 28,044 entities (11.81%) employed undeclared workers. Among 812,460 scrutinized employees, 44,642 (5.49%) were identified as undeclared, leading to fines totalling €468,997,663 in efforts to address non-compliance with labour regulations. This study not only sheds light on the successful strategies adopted by the Greek government but also offers valuable practical lessons for policymakers globally.