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Employment expectations and uncertainties ahead of the new German minimum wage

Author

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  • Bossler, Mario

    (Institute for Employment Research (IAB), Nuremberg, Germany)

Abstract

"Followed by an extensive policy discussion late 2013 and early 2014, the new German minimum wage was introduced on 1 January 2015. This article analyzes announcement effects of the new statutory minimum wage on employer expectations in 2014. The IAB Establishment Panel allows for a difference-in-differences comparison between affected and unaffected employers and entails variables that address the employers' employment expectations. In 2014, affected employers show an increased employment uncertainty and a drop in their expected employment development. They also more likely report wage costs to become a problem. In size, the employment expectations translate into a loss of about 12 800 jobs." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Bossler, Mario, 2016. "Employment expectations and uncertainties ahead of the new German minimum wage," IAB-Discussion Paper 201603, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    • Handle: RePEc:iab:iabdpa:201603
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    More about this item

    Keywords

    Bundesrepublik Deutschland ; Beschäftigungseffekte ; Einstellungen ; IAB-Betriebspanel ; Mindestlohn ; Mindestlohnrecht ; Arbeitgeber ; 2014-2014;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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