Training and minimum wages: first evidence from the introduction of the minimum wage in Germany

Bellmann, Lutz; Bossler, Mario; Gerner, Hans-Dieter; Hübler, Olaf

doi:10.1186/s40172-017-0058-z

Cited by 6 publications

(2 citation statements)

References 36 publications

(40 reference statements)

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“…were systematically reduced for workers whose hourly wage had to be raised to the minimum wage level. Bellmann et al (2017b) further find that the intensity of employer-financed training was reduced at establishments treated by the minimum wage. Finally, the incidence of increased labor costs may have also been passed on to firm owners and consumers through lower profits and higher output prices (Bossler et al, 2018).…”

Section: Resultsmentioning

confidence: 79%

The German Statutory Minimum Wage and Its Effects on Regional Employment and Unemployment

Bonin

Isphording

Krause-Pilatus

et al. 2019

Jahrbücher Für Nationalökonomie Und Statistik

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This paper studies the effects of the introduction of Germany’s statutory minimum wage in 2015 on employment and unemployment on the level of regional labor markets. Using variation in the regional exposure to the new wage floor, we employ a difference-in-differences approach that compares the evolution of employment and unemployment between regions with varying minimum wage bites. Overall, we find no statistically significant effect of the introduction of the German minimum wage on regular employment subject to social insurance, but a statistically significant negative effect on marginal employment. The reduction is not accompanied by a proportional increase in unemployment.

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Section: Resultsmentioning

confidence: 79%

The German Statutory Minimum Wage and Its Effects on Regional Employment and Unemployment

Bonin

Isphording

Krause-Pilatus

et al. 2019

Jahrbücher Für Nationalökonomie Und Statistik

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“…4.5.3. Training and internships Bellmann et al (2017) analyse the effect of the wage floor reform on both training incidence and intensity. Employing a DiD-E approach with the IAB-EP, the authors do not find a reduction in the training incidence, that is, the decision to provide training to at least one employee.…”

Section: Satisfaction and Motivationmentioning

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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