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The undocumented economic immigrants (UEI) in Greece (about half a million since the early 1990s, forming the bulk of the immigration to the country) find jobs because of their wage and job-flexible labour and the rigidities in the Greek labour market. They have positive effects on the GDP through the increase in the supply of labour, and there is evidence that they also contribute to relieving the inflationary pressures on the economy. The immigrant-induced unemployment, the decreasing effect on real wages and the adverse distributional effects on income appear to be limited, but other tangible and intangible socio-economic costs are likely to be significant: the UEI expand further the underground economy, although their work is not among its main causes; they – among others – are often subject to exploitation, which exposes Greece to criticism that it benefits from their labour without offering them any opportunity to integrate economically and socially. Despite ample evidence that the recent increased criminality in Greece is mainly due to individuals and organized gangs who enter in order to commit crimes, usually in close collaboration with local people, many Greeks believe that the UEI are the main cause. Finally, by restricting increases in real wage costs, the UEI may have diminished the efforts to increase capital investment and economic restructuring. Until January 1998, when the five-month registration period for their regularization started, the undocumented immigrants – mostly young people without their families – had a short average stay in the country and no civil rights. Consequently, the ‘positive’ demographic and social effects of immigration have been limited.

Postwar Greece provides an excellent case study in international migration research: few countries have been affected by such a variety and intensity of migratory phenomena. This paper offers a review and evaluation of the Greek experience of international migration. Such a synthetic and comprehensive overview has particular utility given the lack of published research on recent Greek migration trends. The analysis is based partly on available published data, and partly on qualitative appraisals. Three major international migration phases are analysed–emigration, return migration and immigration–and the main socio‐economic and cultural effects of these migration trends are discussed. The paper pays particular attention to the recent mass immigration movements, noting their heterogeneity (Albanians, Poles, Egyptians, Filipinos, etc.) and describing their impact on the Greek labour market. The article concludes with some comments on the difficulties of formulating a Greek migration policy in the light of the country's location, open borders and internationalized economy.

Strong push, pull and network formation factors account for the over 600,000 foreign immigrants, mostly economic and with irregular status, who have been since the early 1990s in Greece, a traditionally emigration country. Over a quarter of them are females who have come alone, marking the new trend in female migration. And like their male counterparts, they find jobs due to their wage and job flexibility. The recent Greek policy to regularise irregular or undocumented immigrants (UI), that is, to issue work and, in most cases, residence permits to those foreigners who work and/or live in the country irregularly, will settle some political, moral and social issues and allow more households and large firms to employ in a variety of jobs more women with a legal immigrant status. From the research point of view it may also facilitate more research on immigrant female employment, social and family life, and adult and child prostitution. On the other hand, it will also increase the cost of immigrant labour, its flexibility is likely to decrease and the invited depended family members of the legalised immigrants may tax heavily the inadequate and subsidised social infrastructure. Given that many irregular migrants have not applied for regularisation and new ones enter the market, perhaps a new regularisation would be needed soon, raising the broader question about the proper economic and social policies on irregular immigration.