Impacts of minimum wages: a microdata analysis for the German construction sector

König, Marion; Möller, Joachim

doi:10.1108/01437720910997362

Cited by 50 publications

(53 citation statements)

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“…This approach has been used extensively to evaluate German sector-specific minimum wages (Fitzenberger and Doerr, 2016). In a study on the construction sector, König and Möller (2009) compared wages below and above the minimum wage threshold and reported a positive redistributional effect of the minimum wage. A study by Frings (2013) evaluated the effect of minimum wages on painters and electricians, using the transport and communication industry and the wholesale and retail sectors as control groups.…”

Section: Distributional Effects Of Minimum Wagesmentioning

confidence: 99%

“…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%

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

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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Section: Distributional Effects Of Minimum Wagesmentioning

confidence: 99%

Section: Institutional Backgroundmentioning

confidence: 99%

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

et al. 2017

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“…Although economists agree that minimum wages reduce inequality in society, they disagree over the possible adverse impacts, such as increasing unemployment, rising prices, and declining economic growth (Brown et al, 1982;Card, 1992;Card and Krueger, 1992;Machin and Manning, 1994;König and Möller, 2009;Dube et al, 2010;Frings, 2013;Neumark et al, 2014). Most economists are skeptical about the asserted positive effects of a minimum wage, particularly on low-skilled workers.…”

Section: Introductionmentioning

confidence: 98%

“…Many in the German expert community therefore expected higher disemployment effects than those found in the US. 6 Moreover, findings of disemployment effects in studies on industry-specific minimum wages (Bachmann et al, 2008;König and Möller, 2009) and predictions of negative outcomes in simulation studies (Müller andSteiner, 2010, 2013) lished an open letter to politicians signed by 130 renowned professors of economics with the warning of high and rising unemployment following the introduction of a minimum wage. At that time, there were only a few studies presenting a more optimistic picture (Bosch, 2007;Möller, 2012).…”

mentioning

confidence: 99%

Economic Aspects of Subjective Attitudes towards the Minimum Wage Reform

Fedorets

Schroeder

2017

SSRN Journal

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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. AbstractDespite some skepticism among experts about the effects of a minimum wage, there is remarkably widespread public support for such policies. Using representative survey data from 2015 and 2016, we investigate the subjective attitudes driving public support for Germany's recent minimum wage reform. We find that socio-economic characteristics and political orientations explain a minor part of the variation in attitudes, whereas beliefs that the reform will bring positive redistributional effects and perceptions that it will help people to maintain or improve their overall economic situation (measured by living standards, income, hours worked, and job security) play a major role.JEL-Classification: D71, E64, J38.

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“…König and Möller (2009) analyze the minimum wage effects on wage growth and the individual employment retention probability in the main construction sector. Rattenhuber (2014) focuses on the consequences in wage distribution and Müller (2010) on the employment effects in the same sector.…”

Section: Introductionmentioning

confidence: 99%