Arbeitsmarktreformen: Was noch zu tun bleibt

Rürup, Bert; Heilmann, Dirk

doi:10.1007/s10273-012-1385-0

Cited by 2 publications

(1 citation statement)

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“…Proponents of the minimum wage, such as Rürup and Heilmann () or the Social Democrats (SPD, ), argue that the introduction of a general minimum wage is necessary to counter the negative effects of the new low‐pay sector and will increase the efficiency of the combination wage scheme, since the Aufstocker will obtain a larger share of their income from work and not from transfers. Assuming the absence of detrimental employment effects, a modestly set minimum wage would be beneficial for the public budget, due to the reduction in supplementary welfare payments for the Aufstocker and increases in payroll and income taxes.…”

Section: Institutional Backgroundmentioning

confidence: 99%

The Effects of Germany’s Statutory Minimum Wage on Employment and Welfare Dependency

Schmitz

2019

German Economic Review

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In January 2015, Germany introduced a federal, statutory minimum wage of 8.50 € per hour. This study evaluates the effects of this policy on regular and marginal employment and on welfare dependency. Based on the county-level administrative data, this study uses the difference-in-differences technique, exploiting regional variation in the bite of the minimum wage, i.e., the county-specific share of employees paid less than 8.50 € before the introduction of the minimum wage. The minimum wage had a considerable negative effect on marginal employment. There is also some indication that regular employment was slightly reduced. Concerning welfare dependency, the minimum wage reduced the number of working welfare recipients, with some indication that about one half of them left welfare receipt due to the minimum wage.

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Section: Institutional Backgroundmentioning

confidence: 99%