Why are salaries so low in Greece?

In a low-tech and low-added-value economy, with jobs requiring little if any specialization, and unskilled managers who often secure profits by keeping wages low, salaries will never be satisfactory, says Professor Manos Matsaganis. [InTime News]

The decision to raise the minimum wage to 830 euros a month confirms the government's inclination for progressive measures on social issues. This is supported by both "high" and "low" policy calculations: On the one hand, concern for protecting the weak and defending social cohesion; on the other, the decision by the ruling party's present leadership to represent the vast political space stretching from the center-left to the fringes of the far-right. There is no point in delving into the question of intentions in order to interpret the government's social sensibilities; on a daily basis, we are all driven by mixed motives. What matters is that noble and less noble motives are aligned; this is certainly the case in the minimum wage hike.

Indeed, the government's move buttresses the purchasing power of low-wage earners in view of inflation: The cumulative increase in the...

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