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
2020 ◽  
Vol 240 (2-3) ◽  
pp. 269-294 ◽  
Author(s):  
Martin Friedrich

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.


2018 ◽  
Vol 53 ◽  
pp. 46-62 ◽  
Author(s):  
Marco Caliendo ◽  
Alexandra Fedorets ◽  
Malte Preuss ◽  
Carsten Schröder ◽  
Linda Wittbrodt

Author(s):  
Marco Caliendo ◽  
Alexandra Fedorets ◽  
Malte Preuss ◽  
Carsten Schroeder ◽  
Linda Wittbrodt

2013 ◽  
Vol 14 (3) ◽  
pp. 282-315 ◽  
Author(s):  
Bodo Aretz ◽  
Terry Gregory ◽  
Melanie Arntz

Abstract This study contributes to the sparse literature on employment spillovers of minimum wages. We exploit the minimum wage introduction and subsequent increases in the German roofing sector that gave rise to an internationally unprecedented hard bite of a minimum wage. We look at the chances of remaining employed in the roofing sector for workers with and without a binding minimum wage and use the plumbing sector that is not subject to a minimum wage as a suitable benchmark sector. By estimating the counterfactual wage that plumbers would receive in the roofing sector given their characteristics, we are able to identify employment effects along the entire wage distribution. The results indicate that the chances for roofers to remain employed in the sector in eastern Germany deteriorated along the entire wage distribution. Such employment spillovers to workers without a binding minimum wage may result from scale effects and/or capital-labour substitution.


10.3386/w0812 ◽  
1981 ◽  
Author(s):  
John Boschen ◽  
Herschel Grossman

2019 ◽  
Author(s):  
José Azar ◽  
Emiliano Huet-Vaughn ◽  
Ioana Elena Marinescu ◽  
Bledi Taska ◽  
Till Von Wachter

2019 ◽  
Vol 20 (3) ◽  
pp. 293-329 ◽  
Author(s):  
David Neumark

Abstract I discuss the econometrics and the economics of past research on the effects of minimum wages on employment in the United States. My intent is to try to identify key questions raised in the recent literature, and some from the earlier literature, which I think hold the most promise for understanding the conflicting evidence and arriving at a more definitive answer about the employment effects of minimum wages. My secondary goal is to discuss how we can narrow the range of uncertainty about the likely effects of the large minimum wage increases becoming more prevalent in the United States. I discuss some insights from both theory and past evidence that may be informative about the effects of high minimum wages, and try to emphasize what research can be done now and in the near future to provide useful evidence to policymakers on the results of the coming high minimum wage experiment, whether in the United States or in other countries.


Sign in / Sign up

Export Citation Format

Share Document