High-Impact Minimum Wages and Heterogeneous Regions

Berge, Philipp vom; Frings, Hanna; Paloyo, Alfredo R.

doi:10.2139/ssrn.2246760

“…5 Most sector-specific minimum wages are higher than the statutory minimum wage and were increased after the minimum wage reform (Amlinger et al, 2016). An overview of sector-specific minimum wages is given in Schröder (2014), while König andMöller (2009), Frings (2013), and vom Berge et al (2013) investigate their economic effects.…”

Section: Institutional Backgroundmentioning

confidence: 99%

The Short-Term Distributional Effects of the German Minimum Wage Reform

Caliendo

¹

,

Fedorets

²

,

Preuß

³

et al. 2017

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in SOEPpapers on Multidisciplinary Panel Data Research at DIW BerlinThis series presents research findings based either directly on data from the German SocioEconomic Panel study (SOEP) or using SOEP data as part of an internationally comparable data set (e.g. CNEF, ECHP, LIS, LWS, CHER/PACO). SOEP is a truly multidisciplinary household panel study covering a wide range of social and behavioral sciences: economics, sociology, psychology, survey methodology, econometrics and applied statistics, educational science, political science, public health, behavioral genetics, demography, geography, and sport science.The decision to publish a submission in SOEPpapers is made by a board of editors chosen by the DIW Berlin to represent the wide range of disciplines covered by SOEP. There is no external referee process and papers are either accepted or rejected without revision. Papers appear in this series as works in progress and may also appear elsewhere. They often represent preliminary studies and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be requested from the author directly.Any opinions expressed in this series are those of the author(s) and not those of DIW Berlin.Research disseminated by DIW Berlin may include views on public policy issues, but the institute itself takes no institutional policy positions. Working Paper AbstractThis study quantifies the short-term distributional effects of the new statutory minimum wage in Germany. Using detailed survey data (German Socio-Economic Panel), we assess changes in the distributions of hourly wages, contractual and actual working hours, and monthly earnings. Our descriptive results indicate growth at the bottom of the hourly wage distribution in the post-reform year, but also considerable noncompliance among eligible employees. In a second step, we employ a difference-in-differences analysis and exploit regional variation in the "bite" of the intervention, measured by the share of employees in a geographical region with wages below the minimum wage prior to the reform. We document the reform's positive effect at the bottom of the wage distribution. However, we find a negative effect of the reform on contractual hours worked, which explains why there is no effect on monthly earnings. Given that actual hours worked decrease less than contractual hours, our evidence suggests an increase in unpaid overt...

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“…The empirical studies on employment effects of (sectoral) minimum wages in Germany (König and Möller, 2009;Frings, 2013;Vom Berge, Frings and Paloyo, 2013) is similarly inconclusive as in the US (Card and Krueger, 1994;Dube, Lester and Reich, 2010;Neumark and Wascher, 2008) or the UK (Machin and Wilson, 2004;Metcalf, 2008;Dolton, Bondibene and Wadsworth, 2012), but shows a tendency towards reporting neutral employment effects 1 . In the political and academic discussion leading to the introduction of the statutory minimum wage in 2015, the monopsonistic structure of the labour market was repeatedly brought forward as a theoretical explanation for the non-negative employment effects of the existing minimum wages at the industry level.…”

Section: Introductionmentioning

confidence: 99%

Monopsonistic Competition, Low-Wage Labour Markets, and Minimum Wages An Empirical Analysis

Bachmann

¹

,

Frings

²

2015

Self Cite

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in

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“…account, vom Berge, Frings, and Paloyo (2013) analyze the effects on wage growth and employment growth. In contrast, Frings (2013) concentrates on employment effects in other subsectors of the construction industry where different minimum wage rates were introduced.…”

mentioning

confidence: 99%

The Effect of Minimum Wages on Labour Market Flows Evidence from Germany

Bachmann

¹

,

Penninger

²

,

Schaffner

³

2015

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The working papers published in the Series constitute work in progress circulated to stimulate discussion and critical comments. Views expressed represent exclusively the authors' own opinions and do not necessarily refl ect those of the editors. Terms of use: Documents in Ruhr Economic Papers #598Ronald Bachmann, Marion Penninger, and Sandra Schaff ner The Eff ect of Minimum Wages on Labour Market Flows -Evidence from Germany

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High-Impact Minimum Wages and Heterogeneous Regions

Cited by 6 publications

References 38 publications

The Short-Term Distributional Effects of the German Minimum Wage Reform

The Short-Term Distributional Effects of the German Minimum Wage Reform

Monopsonistic Competition, Low-Wage Labour Markets, and Minimum Wages An Empirical Analysis

The Effect of Minimum Wages on Labour Market Flows Evidence from Germany

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