Was it worth it? The impact of the German minimum wage on union membership of employees

2021 ◽  
pp. 0143831X2110358
Author(s):  
Simon Ress ◽  
Florian Spohr

This contribution scrutinises how introducing a statutory minimum wage of EUR 8.50 per hour, in January 2015, impacted German employees’ decision with regard to union membership. Based on representative data from the Labour Market and Social Security panel, the study applies a logistic difference-in-differences propensity score matching approach on entries into and withdrawals from unions in the German Trade Union Confederation (Deutscher Gewerkschaftsbund, DGB). The results show no separate effect on withdrawals from or entries into unions after the minimum wage introduction for those employees who benefited financially from it, but a significant increase of entries overall. Thus, unions’ campaign for a minimum wage strengthened their position in total but did not reverse the segmentation of union membership patterns.

1970 ◽  
Vol 20 (1) ◽  
Author(s):  
Christina Cregan ◽  
Chris Rudd ◽  
Stewart Johnston

This paper investigates the impact of the Employment Contracts Act on trade union membership. Two separate surveys of labour market participants lvere conducted in Dunedin on the eve of the legislation and one year later. The findings demonstrated that for these samples, trade union membership in aggregate was not based on compulsion before the legislation and remained at a similar level a year later. Democracy was not restored to the workplace it was already apparent there. This implies that changes in the industrial relations system had already taken place prior to the legislation and it is suggested that these findings are explicable if the effect of the exigencies of the recession on both parries is taken account of In the ensuing discussion, reasons for the persistence of the same level of union membership after the legislation were considered. It was demonstrated that most members li'anted the union to act as their bargaining agent and felt few pressures regarding their choice of employment contract. In other words, employers did not utilise the provisions of the Act to weaken union membership, at least in the short term.


Author(s):  
Lucas Hafner ◽  
Benjamin Lochner

AbstractWe analyze whether the introduction of the general minimum wage in Germany in 2015 had an effect on workers’ self-rated health. To this end, we use survey data linked to administrative employment records and apply difference-in-differences regressions combined with propensity score matching. This approach enables us to control for a vast set of potential confounding variables. We find a health improving effect among the individuals who were most likely to be affected by the reform. Our results indicate that workers’ improved satisfaction with pay, their reduced working hours, and a reduction in time pressure at work may drive this result.


2016 ◽  
Vol 23 (03) ◽  
pp. 36-56
Author(s):  
Loc Truong Dong ◽  
Tran Ngo My

The main objective of this study is to measure the impact of equitization on firm performance in Vietnam. The dataset, retrieved from the survey on enterprises conducted by the General Statistics Office of Vietnam (GSO), consists of 301 equitized state-owned firms and 127 unequitized state-owned firms during the period from 2007 to 2010. By using propensity score matching (PSM) combined with difference in differences (DID) approach, we find that equitization has positive impacts on the ratio of income before tax to total assets and the ratio of income before tax to sales. Moreover, this study reveals that debt ratio, total asset turnover, and the number of employees have significantly decreased after equitization. However, no evidence is found regarding the effect of equitization on productivity of equitized firms.


2021 ◽  
Vol 10 (1-2) ◽  
pp. 1-16
Author(s):  
Atrayee Ghosh Roy

Abstract The purpose of this paper is to explore the impact of effective teaching methods on learning outcomes in elementary schools in rural India. Particularly, this paper studies an innovative learning enhancement program called “Parrho Punjab” launched in 2007 in the Indian state of Punjab. Using cross-sectional data, the effect of the “Parrho Punjab” program on third to fifth grade children’s learning levels in basic mathematics is evaluated. This study develops combined research designs of propensity score matching technique and the difference-in-differences (DID) method. In a first step, propensity score matching technique is applied to create a synthetic control group that is as similar as possible to the treatment group in terms of pre- “Parrho Punjab” characteristics. The difference-in-differences approach is then used to estimate the effect of the program on third to fifth grade children’s learning outcomes in basic mathematics. The results indicate a positive and significant effect of the program on children’s learning outcomes in basic mathematics, underscoring the importance of effective pedagogy in enhancing learning outcomes. Combining propensity score matching with the difference-in-differences approach, this study addresses the problem of unmeasured confounding. The DID approach will produce misleading conclusions in the presence of bias due to unmeasured confounders. To the best of my knowledge, previous studies using a DID method for examining the impact of effective teaching strategies on student learning outcomes in India have not made such attempts to address the problem of confounding bias.


2019 ◽  
Vol 3 (02) ◽  
pp. 18
Author(s):  
Deden Ferry Kurniawan ◽  
Hera Susanti

<p><em>This research aims to generate empirical evidence on the impact of cash transfers on Poverty on households in Indonesia, using the Indonesian Family Life Survey (IFLS) panel data in 2007 and 2014, and the method of Difference-in-differences with propensity score matching. This study estimates the impact of relief and benefits that do not receive assistance on Poverty. Results are expected to find that the provision of assistance (cash transfers) has a significant impact on poverty in terms of beneficiaries and who does not receive assistance, or viewed from a total of two (beneficiaries and who are not receiving assistance). It is found that the provision of assistance to the people who were targeted as shown to improve the welfare of beneficiaries, but have not been able to exceed the group that did not receive aid.</em><em> </em></p><p><strong><em>JEL Classification: </em></strong><em>I31, I32, I38</em></p><p><strong><em>Keywords</em></strong><em>: </em><em>Cash transfer, Difference-in-differences, Poverty, Propensity Score Matching</em><em></em></p>


2004 ◽  
Vol 5 (4) ◽  
pp. 481-504 ◽  
Author(s):  
Laszlo Goerke ◽  
Markus Pannenberg

Abstract In the absence of closed shops and discriminatory wage policies, union membership can be explained by the existence of social norms.We describe a model, incorporating institutional features of the German labour market, which explicitly allows for social custom effects in the determination of union membership. Using panel data for Germany, we find evidence for according effects which restrict freeriding. The impact of social norms tends to increase with net union density. Hence, observed reductions in the demand for union membership can weaken the impact of a norm and accentuate the free-rider problem.


2020 ◽  
Vol 240 (2-3) ◽  
pp. 233-267 ◽  
Author(s):  
Patrick Burauel ◽  
Marco Caliendo ◽  
Markus M. Grabka ◽  
Cosima Obst ◽  
Malte Preuss ◽  
...  

AbstractThe present paper analyzes how the statutory minimum wage introduced on January 1, 2015, has affected working hours in Germany up to 2016. The data used come from the Socio-Economic Panel (SOEP), which provides not only contractual working hours but also actual hours worked. Using a difference-in-differences estimation approach, we find a significant and robust reduction in contractual working hours among employees who are subject to social security contributions and earned less than the minimum wage before the introduction. The effect in 2015 is about −5 % and corresponds to a 1.7 hours reduction in average weekly working hours. The effect on actual hours is smaller and estimated less precisely. Extending the analysis until 2016 does not yield significant effects on contractual or actual working hours, while some specifications reject the common trend assumption.


2020 ◽  
Vol 32 (3) ◽  
pp. 278-312
Author(s):  
Kebin Deng ◽  
Zhong Ding ◽  
Yalu Wang

This article examines the impact of spiritual tempering on corporate performance by investigating the experiences of CEOs who were part of the “peasant youth” between 1957 and 1976 in China. Using a sample of China’s listed companies and by developing propensity score matching and a difference-in-differences model, we find that CEOs who had profound peasant youth experiences have a stronger awareness of risk prevention and that these experiences lead to an improvement in corporate performance of over 3%. In addition, the positive impact of CEOs’ peasant youth experience on corporate performance is pronounced in either state-owned or non-state-owned enterprises. Overall, this study confirms that spiritual tempering has a significant positive impact on corporate performance.


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