The Short-Run Employment Effects of the German Minimum Wage Reform

Caliendo, Marco; Fedorets, Alexandra; Preuß, Malte; Schroeder, Carsten; Wittbrodt, Linda

doi:10.2139/ssrn.3105436

Cited by 28 publications

(47 citation statements)

References 21 publications

(4 reference statements)

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“…20 Unfortunately, the data are available only for 2014, but not for our preferred period, 2013, meaning that anticipatory effects may already have taken effect on the bite. However, in a companion paper (Caliendo et al, 2017) we show that there were no anticipation effects on wages. Table 11 replicates the main analyses for hourly wages, except that instead of the SOEP-based bite for 2013 we use the SES-based bite for 2014.…”

Section: Wage Outliers and Item Non-responsementioning

confidence: 66%

“…On the other hand, non-compliance could also dampen reactions on the labor market. This is potentially part of the the reason why Garloff (2016), Bossler and Gerner (2016) and Caliendo et al (2017) report that the minimum-wage reform has had no or only minor negative employment effects in the short run. …”

Section: Resultsmentioning

confidence: 99%

“…By construction, as Sample 2 conditions on employment, analyses using this sample say nothing about the reform's effects on those who entered or left the labor force between 2014 and 2015. However, the short-term effects of the reform on employment are shown to be minor and thus negligible for our analysis (Mindestlohnkommission, 2016a;Bossler and Gerner, 2016;Caliendo et al, 2017).…”

Section: Working Samplementioning

confidence: 85%

“…However, the short-term empirical evidence does not support such negative predictions. Using administrative data on regional employment and firm data, Garloff (2016), Bossler and Gerner (2016), and Caliendo et al (2017) find no or only small negative short-run employment effects. Rather, there is evidence that the reform led to the phenomenon of "mini-jobs" 3 being transformed into regular employment.…”

Section: Introductionmentioning

confidence: 99%

“…Methodologically, our analysis uses descriptive tools borrowed from the literature on economic inequalities and poverty, as well as a difference-in-differences regression framework (DiD) with continuous treatment (Card, 1992b;Caliendo et al, 2017). Descriptively, we provide graphical representations of hourly wage distributions before and after the reform, and we also assess wage inequalities among low-wage employees and quantify their wages relative to the minimum wage.…”

Section: Introductionmentioning

confidence: 99%

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

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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: Wage Outliers and Item Non-responsementioning

confidence: 66%

Section: Resultsmentioning

confidence: 99%

Section: Working Samplementioning

confidence: 85%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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

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Did earnings mobility change after minimum wage introduction? Evidence from parametric and semi‐nonparametric methods in Germany

Naguib

2022

J of Applied Econometrics

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We analyze the evolution of earnings mobility in Germany between 2011 and 2018. We use transition matrices and parametric and semi-nonparametric copula models to assess the impact of the introduction of the national minimum wage on January 1, 2015, on individual positional persistence in the wage distribution. We find a drop in mobility at the bottom of the distribution. This is confirmed both by the parametric and the semi-nonparametric methods used. Prediction accuracy of the semi-nonparametric model is higher than that of the fully parametric model.

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Did earnings mobility change after minimum wage introduction? Evidence from parametric and semi‐nonparametric methods in Germany

Naguib

2022

J of Applied Econometrics

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The Short-Run Employment Effects of the German Minimum Wage Reform

Cited by 28 publications

References 21 publications

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

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

Did earnings mobility change after minimum wage introduction? Evidence from parametric and semi‐nonparametric methods in Germany

Did earnings mobility change after minimum wage introduction? Evidence from parametric and semi‐nonparametric methods in Germany

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