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Indirect Employment Effects of Branch-Specific Minimum Wages

Author

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  • Ulrich van Suntum

Abstract

Empirical studies often find no negative employment effects on branch-related minimum wages. However, Ulrich van Suntum, University of Münster, shows that the monitoring of trends in employment in the respective minimum wage sectors is insufficient. Inelastic demand inevitably leads to loss-of-purchasing-power effects and corresponding employment losses in other sectors that are not affected by minimum wages.

Suggested Citation

  • Ulrich van Suntum, 2014. "Indirect Employment Effects of Branch-Specific Minimum Wages," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 67(03), pages 39-44, February.
    • Handle: RePEc:ces:ifosdt:v:67:y:2014:i:03:p:39-44
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    References listed on IDEAS

    as
    1. Christian Ragacs, 2003. "Mindestlöhne und Beschäftigung: Ein Überblick über die neuere empirische Literatur," Working Papers geewp25, Vienna University of Economics and Business Research Group: Growth and Employment in Europe: Sustainability and Competitiveness.
    2. Card, David & Krueger, Alan B, 1994. "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania," American Economic Review, American Economic Association, vol. 84(4), pages 772-793, September.
    3. Stephen Machin & Alan Manning, 1994. "The Effects of Minimum Wages on Wage Dispersion and Employment: Evidence from the U.K. Wages Councils," ILR Review, Cornell University, ILR School, vol. 47(2), pages 319-329, January.
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    Cited by:

    1. Andreas Kappeler & Andrés Fuentes Hutfilter, 2014. "Making Economic Growth more Socially Inclusive in Germany," OECD Economics Department Working Papers 1175, OECD Publishing.

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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • 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

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