scholarly journals Using Occupations to Evaluate the Employment Effects of the German Minimum Wage

2020 ◽  
Vol 240 (2-3) ◽  
pp. 269-294 ◽  
Author(s):  
Martin Friedrich
Keyword(s):  
Minimum Wage ◽  
West Germany ◽  
Difference In Differences ◽  
Regional Effect ◽  
Employment Effects ◽  
Regular Employment ◽  
Short Run ◽  
Wage Floor ◽  
Effect Heterogeneity ◽  
The Impact

AbstractThis paper evaluates the short to medium run employment effects of the 2015 introduction of a statutory minimum wage in Germany. The effect of the policy is recovered from variation in the bite of the minimum wage across occupations using a difference-in-differences estimator. The analysis reveals that the reform only had a small impact on employment and highlights the importance of regional effect heterogeneity. In East Germany, marginal employment decreased by about 18,000 jobs in the short run and 52,000 jobs in the medium run, respectively, due to the minimum wage. In West Germany, no negative employment effects are detectable, but regular employment increased temporarily because of the reform. The medium run estimates include the impact of the first marginal increase of the wage floor from €8.50 to €8.84 in 2017.

scholarly journals The Impact of the German Minimum Wage on Individual Wages and Monthly Earnings

2020 ◽  
Vol 240 (2-3) ◽  
pp. 201-231 ◽  
Author(s):  
Patrick Burauel ◽  
Marco Caliendo ◽  
Markus M. Grabka ◽  
Cosima Obst ◽  
Malte Preuss ◽  
...  
Keyword(s):  
Minimum Wage ◽  
Wage Growth ◽  
Wage Structure ◽  
Causal Analysis ◽  
Hourly Wage ◽  
Difference In Differences ◽  
Short Run ◽  
Wage Floor ◽  
The Impact

AbstractThis paper evaluates the short-run impact of the introduction of a statutory minimum wage in Germany on the hourly wages and monthly earnings of workers targeted by the reform. We first provide detailed descriptive evidence of changes to the wage structure in particular at the bottom of the distribution and distinguish between trends for regularly employed and marginally employed workers. In the causal analysis, we then employ a differential trend adjusted difference-in-differences (DTADD) strategy to identify the extent to which these changes in wages and earnings can be attributed to the minimum wage introduction. We find that the minimum wage introduction can account for hourly wage growth in the order of roughly 6.5 % or \euro0.45/hour and an increase in monthly earnings of 6.6 % or \euro53/month. Despite finding wage growth at the bottom of the distribution, the paper documents widespread non-compliance with the mandated wage floor of \euro8.50/hour.

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

2020 ◽  
Vol 240 (2-3) ◽  
pp. 295-319 ◽  
Author(s):  
Holger Bonin ◽  
Ingo E. Isphording ◽  
Annabelle Krause-Pilatus ◽  
Andreas Lichter ◽  
Nico Pestel ◽  
...  
Keyword(s):  
Labor Markets ◽  
Minimum Wage ◽  
Social Insurance ◽  
Difference In Differences ◽  
Regional Labor Markets ◽  
Regional Labor ◽  
Regular Employment ◽  
Negative Effect ◽  
Proportional Increase ◽  
Wage Floor

AbstractThis 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.

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
Keyword(s):  
Propensity Score ◽  
Social Security ◽  
Labour Market ◽  
Propensity Score Matching ◽  
Minimum Wage ◽  
Trade Union ◽  
Union Membership ◽  
Difference In Differences ◽  
German Trade ◽  
The Impact

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.

scholarly journals The impact of minimum wages for domestic workers in Bloemfontein, South Africa

2010 ◽  
Vol 8 (1) ◽  
Author(s):  
Phillip F. Blaauw ◽  
Louis J. Bothma
Keyword(s):  
South Africa ◽  
Minimum Wage ◽  
Structural Changes ◽  
Domestic Workers ◽  
Real Wages ◽  
Employment Effects ◽  
Course Of Action ◽  
Minimum Wage Legislation ◽  
The Impact

Orientation: The number of domestic workers in South Africa has decreased in the last decade, seemingly corresponding with efforts by government to increase regulation.Research purpose: The purpose of this study was to investigate possible structural changes in this labour market over the last decade, as well as the possible employment effects of the latest minimum wage provisions.Motivation for the study: Previous studies on the topic were carried out either prior to, or just after, the implementation of the minimum wage legislation for domestic workers. Now, five years after implementation, the conclusions and predictions of these studies need to be evaluated.Research design, approach and method: The study utilised a repeat survey in the suburb of Langenhoven Park in Bloemfontein, where two previous microstudies had been conducted. Structural interviews were conducted with a sample of 132 respondents and the data analysed.Main findings: There are now fewer domestic workers working for more employers, than there were ten years ago. In contrast to predictions from the literature, these changes mostly occurred before the implementation of the legislation. Real wages and legislative compliance improved for those who remained employed.Practical implications: The task of balancing the improvement of the lives of domestic workers and the possible adverse consequences of the legislation, in the form of job losses, remains as daunting as it was ten years ago.Contribution: Literature predicts changes in the market for domestic workers to be long term. This study shows that most changes took place before the implementation of the legislation as employers decided on their course of action.

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

2017 ◽  
Author(s):  
Marco Caliendo ◽  
Alexandra Fedorets ◽  
Malte Preuss ◽  
Carsten Schroeder ◽  
Linda Wittbrodt
Keyword(s):  
Minimum Wage ◽  
Employment Effects ◽  
Short Run

The Effects of Germany’s Statutory Minimum Wage on Employment and Welfare Dependency

2019 ◽  
Vol 20 (3) ◽  
pp. 330-355 ◽  
Author(s):  
Sebastian Schmitz
Keyword(s):  
Minimum Wage ◽  
Welfare Recipients ◽  
County Level ◽  
Welfare Dependency ◽  
Welfare Receipt ◽  
Difference In Differences ◽  
Regular Employment ◽  
Negative Effect ◽  
Marginal Employment ◽  
The Difference

AbstractIn January 2015, Germany introduced a federal, statutory minimum wage of 8.50 € per hour. This study evaluates the effects of this policy on regular and marginal employment and on welfare dependency. Based on the county-level administrative data, this study uses the difference-in-differences technique, exploiting regional variation in the bite of the minimum wage, i.e., the county-specific share of employees paid less than 8.50 € before the introduction of the minimum wage. The minimum wage had a considerable negative effect on marginal employment. There is also some indication that regular employment was slightly reduced. Concerning welfare dependency, the minimum wage reduced the number of working welfare recipients, with some indication that about one half of them left welfare receipt due to the minimum wage.

Did the German Minimum Wage Reform Influence (Un)employment Growth in 2015? Evidence from Regional Data

2019 ◽  
Vol 20 (3) ◽  
pp. 356-381 ◽  
Author(s):  
Alfred Garloff
Keyword(s):  
Growth Rate ◽  
Minimum Wage ◽  
Employment Growth ◽  
Difference In Differences ◽  
Lower Growth ◽  
Total Employment ◽  
Negative Results ◽  
Regular Employment ◽  
Lower Growth Rate ◽  
The Relationship

Abstract Using the variation across space, age and sex and the variation across space and sectors, we analyse the relationship between the minimum wage and (un)employment growth in 2015. We use difference-in-differences specifications and instrument the bite of the minimum wage by the lagged bite. The results provide stable evidence that a higher minimum wage bite is related to a higher growth rate of regular employment. We also find stable evidence that a higher minimum wage bite is related to a lower growth rate of marginal employment. These results are consistent with a transformation of marginal to regular jobs. The relationship to total employment is slightly positive in our preferred specification but insignificant or negative in others. For unemployment, we find a positive relationship between the bite of the minimum wage and unemployment growth in our preferred specification but insignificant or negative results in others.

scholarly journals The impact of minimum wage on unemployment, prices, and growth: A multivariate analysis for Turkey

2019 ◽  
Vol 64 (221) ◽  
pp. 65-83
Author(s):  
Biçerli Kemal ◽  
Merve Kocaman
Keyword(s):  
Error Correction ◽  
Minimum Wage ◽  
Causality Test ◽  
Producer Price ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Turkish Economy ◽  
Short Run ◽  
The Impact

The aim of this study is to research the impact of minimum wage on unemployment, prices, and growth for the Turkish economy. The data used is monthly and covers the period from January 2005 to March 2017. The producer price index represents prices and the industrial production index represents growth. The Autoregressive Distributed Lag (ARDL) model is used to see the effect of the minimum wage on these variables. An error-correction based Granger causality test is then conducted to see short-run and long-run causalities. The bounds test yields evidence of a long-run relationship between variables. The obtained ARDL results also show that while the minimum wage has a statistically significant effect on unemployment and prices, it does not have a statistically significant effect on production. While there is short-run causality from minimum wage to prices only, the obtained significant error correction terms indicate long-run causality for all of the variables. Consequently, the minimum wage plays a significant role in increasing prices and the number of unemployed people in Turkey.

scholarly journals Employment Effects of the New German Minimum Wage: Evidence from Establishment-Level Microdata

ILR Review ◽  
2019 ◽  
Vol 73 (5) ◽  
pp. 1070-1094 ◽  
Author(s):  
Mario Bossler ◽  
Hans-Dieter Gerner
Keyword(s):  
Minimum Wage ◽  
Labor Demand ◽  
Working Hours ◽  
Employment Effect ◽  
Demand Elasticity ◽  
First Year ◽  
Difference In Differences ◽  
Employment Effects ◽  
Iab Establishment Panel

The authors present the first evidence on the consequences of the new statutory minimum wage in Germany, which was implemented on January 1, 2015. Using the IAB Establishment Panel, they identify employment effects from variation in the extent that establishments are affected by the minimum wage. A difference-in-differences estimation reveals an increase in average wages between 3.8% and 6.3% and an employment loss by approximately 1.7% in establishments affected by the minimum wage. These estimates imply a labor demand elasticity with respect to wages ranging between −0.2 and −0.4. The authors also observe a transitory reduction of the working hours in the first year after the introduction and that the employment effect seems mostly driven by a reduction in hires rather than by an increase in layoffs.

Sign in / Sign up

Export Citation Format

Share Document