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

Bachmann, Ronald; Penninger, Marion; Schaffner, Sandra

doi:10.2139/ssrn.2721693

Cited by 2 publications

(1 citation statement)

References 25 publications

(27 reference statements)

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“…However, they are highly important for understanding the underlying structures and to identify job loss and hiring effects and should therefore be examined more closely in the future (see e.g. Bachmann et al ., mimeo).…”

Section: Causal Evidencementioning

confidence: 99%

The Causal Effects of the Minimum Wage Introduction in Germany – An Overview

Caliendo

Schröder

Wittbrodt

2019

German Economic Review

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In 2015, Germany introduced a statutory hourly minimum wage that was not only universally binding but also set at a relatively high level. We discuss the shortrun effects of this new minimum wage on a wide set of socioeconomic outcomes, such as employment and working hours, earnings and wage inequality, dependent and selfemployment, as well as reservation wages and satisfaction. We also discuss difficulties in the implementation of the minimum wage and the measurement of its effects related to non-compliance and suitability of data sources. Two years after the minimum wage introduction, the following conclusions can be drawn: while hourly wages increased for low-wage earners, some small negative employment effects are also identifiable. The effects on aspired goals, such as poverty and inequality reduction, have not materialised in the short run. Instead, a tendency to reduce working hours is found, which alleviates the desired positive impact on monthly income. Additionally, the level of noncompliance was substantial in the short run, thus drawing attention to problems when implementing such a wide reaching policy.

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Section: Causal Evidencementioning

confidence: 99%

The Causal Effects of the Minimum Wage Introduction in Germany – An Overview

Caliendo

Schröder

Wittbrodt

2019

German Economic Review

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High-impact minimum wages and heterogeneous regions

Berge

Frings

2019

Empir Econ

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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. Die Deutsche Bibliothek verzeichnet diese Publikation in der deutschen Nationalbibliografi e; detaillierte bibliografi sche Daten sind im Internet über: http://dnb.d-nb.de abrufb ar. AbstractWe estimate the eff ects on wage and employment growth rates of the introduction and subsequent increases of a substantial minimum wage in the main construction industry of Germany. Using a regional dataset constructed from individual employment histories, we exploit the spatial dimension and border discontinuities of the regional data to account for spillovers between districts and unobserved heterogeneity at the local level. The results indicate that the minimum wage increased the wage growth rate for East Germany but did not have a signifi cant impact on the West German equivalent. The estimated eff ect on the employment growth rate reveals a contraction in the East of about 2.6 to 3.1 percentage points for a one-standard-deviation increase in the minimum-wage bite, amounting to roughly half of the overall decline in the growth rate, but no signifi cant change is observed for the West. JEL Classifi cation: J31, J38

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

Cited by 2 publications

References 25 publications

The Causal Effects of the Minimum Wage Introduction in Germany – An Overview

The Causal Effects of the Minimum Wage Introduction in Germany – An Overview

High-impact minimum wages and heterogeneous regions

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