The German Statutory Minimum Wage and Its Effects on Regional Employment and Unemployment-Reference-Cited by-同舟云学术

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

Published:2019-06-28 Issue:2-3 Volume:240 Page:295-319
ISSN:2366-049X
Container-title:Jahrbücher für Nationalökonomie und Statistik
language:en
Short-container-title:

Author:

Bonin Holger¹,Isphording Ingo E.¹,Krause-Pilatus Annabelle¹,Lichter Andreas²,Pestel Nico¹,Rinne Ulf¹

Affiliation:

1. IZA – Institute of Labor Economics , Schaumburg-Lippe-Str. 5–9, 53113 Bonn , Germany

2. Heinrich-Heine University Düsseldorf and Düsseldorf Institute for Competition Economics (DICE) , Düsseldorf , Germany

Abstract

Abstract 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.

Publisher

Walter de Gruyter GmbH

Subject

Economics and Econometrics,Social Sciences (miscellaneous),General Business, Management and Accounting

Link

https://www.degruyter.com/document/doi/10.1515/jbnst-2018-0067/pdf

Reference31 articles.

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3. Bellmann, L., M. Bossler, M. Dütsch, H.-D. Gerner, C. Ohlert (2016), Folgen des Mindestlohns in Deutschland: Betriebe reagieren nur selten mit Entlassungen, IAB-Kurzbericht 18/2016.

4. Bellmann, L., M. Bossler, H.-D. Gerner, O. Hübler (2017b), Training and Minimum Wages: First Evidence from the Introduction of the Minimum Wage in Germany. IZA Journal of Labor Economics 6 (1): 8.

5. Belman, D., P. J. Wolfson (2014), What Does the Minimum Wage Do? Kalamazoo MI: W.E. Upjohn Institute for Employment Research.

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