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The Minimum Wage in Germany: How Many People Are Affected?

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  • Oliver Falck
  • Andreas Knabe
  • Andreas Mazat
  • Simon Wiederhold

Abstract

This article uses two different data sets on the structure of wages in Germany – the socio-economic panel and the Structure of Earnings Survey – to calculate the share of employees that would be affected by the minimum wage agreed upon in the coalition agreement. The extensive introduction of a legal minimum wage can be expected to increase labour costs, particularly in small companies.

Suggested Citation

  • Oliver Falck & Andreas Knabe & Andreas Mazat & Simon Wiederhold, 2013. "The Minimum Wage in Germany: How Many People Are Affected?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 66(24), pages 68-73, December.
    • Handle: RePEc:ces:ifosdt:v:66:y:2013:i:24:p:68-73
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    References listed on IDEAS

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    1. Metcalf, David, 1999. "The Low Pay Commission and the National Minimum Wage," Economic Journal, Royal Economic Society, vol. 109(453), pages 46-66, February.
    2. David Neumark & William L. Wascher, 2008. "Minimum Wages," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262141027, December.
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    5. Karl Brenke & Kai-Uwe Müller, 2013. "Gesetzlicher Mindestlohn: kein verteilungspolitisches Allheilmittel," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 80(39), pages 3-17.
    6. Marcel Thum & Joachim Ragnitz, 2007. "On the introduction of minimum wages: empirical relevance of the low wage sector," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 60(10), pages 33-35, May.
    7. Joachim Ragnitz & Marcel Thum, 2007. "Zur Einführung von Mindestlöhnen: empirische Relevanz des Niedriglohnsektors," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 14(03), pages 36-39, June.
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    Citations

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    Cited by:

    1. Amlinger, Marc & Bispinck, Reinhard & Schulten, Thorsten, 2014. "Niedriglohnsektor: Jeder Dritte ohne Mindestlohn? Ausnahmen vom geplanten Mindestlohn und ihre Konsequenzen," WSI Reports 12, The Institute of Economic and Social Research (WSI), Hans Böckler Foundation.
    2. Knabe Andreas & Schöb Ronnie & Thum Marcel, 2014. "Der flächendeckende Mindestlohn," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 15(2), pages 133-157, June.
    3. Beyer, Robert, 2016. "The Labor Market Performance of Immigrants in Germany," VfS Annual Conference 2016 (Augsburg): Demographic Change 145799, Verein für Socialpolitik / German Economic Association.
    4. Robert C. M. Beyer, 2017. "The Performance of Immigrants in the German Labor Market," SOEPpapers on Multidisciplinary Panel Data Research 892, DIW Berlin, The German Socio-Economic Panel (SOEP).
    5. Arne Heise & Toralf Pusch, 2020. "Introducing minimum wages in Germany employment effects in a post Keynesian perspective," Journal of Evolutionary Economics, Springer, vol. 30(5), pages 1515-1532, November.
    6. Steffen Henzel & Kira Engelhardt, 2014. "Labour Market Effects of a Nationwide Minimum Wage in Germany – a Sensitivity Analysis," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 67(10), pages 23-29, May.
    7. Heise, Arne, 2018. "Reconciling Facts with Fiction, or: A Theoretical Speculation of why the Minimum Wage has no Discernible Effect on Employment," MPRA Paper 92483, University Library of Munich, Germany.
    8. Marco Caliendo & Alexandra Fedorets & Malte Preuss & Carsten Schröder & Linda Wittbrodt, 2017. "The Short-Term Distributional Effects of the German Minimum Wage Reform," SOEPpapers on Multidisciplinary Panel Data Research 948, DIW Berlin, The German Socio-Economic Panel (SOEP).
    9. Döhrn, Roland & Barabas, György & Gebhardt, Heinz & Micheli, Martin & Rujin, Svetlana & Zwick, Lina, 2014. "Die wirtschaftliche Entwicklung im Inland: Aufschwung bleibt moderat," RWI Konjunkturberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, vol. 65(1), pages 37-94.
    10. Roland Döhrn & György Barabas & Heinz Gebhardt & Martin Micheli & Svetlana Rujin & Lina Zwick, 2014. "Die wirtschaftliche Entwicklung im Inland: Aufschwung bleibt moderat," RWI Konjunkturbericht, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, pages 58, 03.
    11. Filiz Gülal & Adam Ayaita, 2020. "The Impact of Minimum Wages on Well-Being: Evidence from a Quasi-experiment in Germany," Journal of Happiness Studies, Springer, vol. 21(7), pages 2669-2692, October.
    12. Karl Brenke, 2014. "Mindestlohn: Zahl der anspruchsberechtigten Arbeitnehmer wird weit unter fünf Millionen liegen," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 81(5), pages 71-77.
    13. Andreas Knabe & Christine Lücke & Ronnie Schöb & Marcel Thum & Lars Vandrei & Michael Weber, 2014. "Regionale Beschäftigungseffekte des Mindestlohns im Freistaat Sachsen," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 21(05), pages 03-12, October.
    14. Caliendo Marco & Wittbrodt Linda & Schröder Carsten, 2019. "The Causal Effects of the Minimum Wage Introduction in Germany – An Overview," German Economic Review, De Gruyter, vol. 20(3), pages 257-292, August.
    15. Michele Battisti & Gabriel Felbermayr, 2015. "Migrants in the German Labour Market: Wages, Unemployment, Employment Rates," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 68(20), pages 39-47, October.
    16. Joachim Möller & Karl Brenke & Gert Wagner & Thorsten Schulten & Gustav Horn & Hagen Lesch & Alexander Mayer & Lisa Schmid & Patrick Arni & Werner Eichhorst & Alexander Spermann & Klaus Zimmermann, 2014. "Das Mindestlohngesetz — Hoffnungen und Befürchtungen," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 94(6), pages 387-406, June.
    17. Amlinger, Marc & Bispinck, Reinhard & Schulten, Thorsten, 2014. "Jugend ohne Mindestlohn? Zur Diskussion um Ausnahme- und Sonderregelungen für junge Beschäftigte," WSI Reports 14, The Institute of Economic and Social Research (WSI), Hans Böckler Foundation.
    18. Bellmann, Lutz & Bossler, Mario & Gerner, Hans-Dieter & Hübler, Olaf, 2015. "IAB-Betriebspanel: Reichweite des Mindestlohns in deutschen Betrieben (The New Federal Minimum Wage in Germany : Affectedness of German Establishments)," IAB-Kurzbericht 201506, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    19. Antje Schubert & Johannes Steinbrecher & Marcel Thum & Michael Weber, 2016. "The Impact of the Statutory Minimum Wage Act in Saxony," ifo Dresden Studien, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 77.
    20. Wolfgang Nierhaus & Timo Wollmershäuser, 2016. "ifo Konjunkturumfragen und Konjunkturanalyse: Band II," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 72.
    21. Boysen-Hogrefe, Jens & Fiedler, Salomon & Groll, Dominik & Jannsen, Nils & Kooths, Stefan & Potjagailo, Galina, 2015. "Deutsche Konjunktur im Sommer 2015 - Deutsche Konjunktur: Expansionstempo bleibt hoch [German Economy Summer 2015 - German economy: Expansion rate remains high]," Kieler Konjunkturberichte 8, Kiel Institute for the World Economy (IfW Kiel).
    22. Dütsch Matthias & Himmelreicher Ralf & Ohlert Clemens, 2019. "Calculating Gross Hourly Wages – the (Structure of) Earnings Survey and the German Socio-Economic Panel in Comparison," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 239(2), pages 243-276, April.

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    More about this item

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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