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Side effects of the new German minimum wage on (un-)employment : first evidence from regional data

Author

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  • Garloff, Alfred

    (Institute for Employment Research (IAB), Nuremberg, Germany ; Federal Ministry of Economic Affairs and Energy)

Abstract

"In Germany, decreasing collective bargaining coverage and rising wage inequality led to the introduction of a new statutory minimum wage of EURO 8.50 per hour of work. We analyze the relationship between the bite of the minimum wage and employment/ unemployment growth using regional data of the Federal Employment Agency for prime age individuals. We use difference-in-differences type of specifications using a panel of region-age-sex cells. The results do not provide evidence in favor of a reduced employment growth for the analysed groups, nor do they provide evidence for an increase in unemployment growth due to the minimum wage. However, we find an increase in growth of regular employment at the expense of marginal employment." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Garloff, Alfred, 2016. "Side effects of the new German minimum wage on (un-)employment : first evidence from regional data," IAB-Discussion Paper 201631, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    • Handle: RePEc:iab:iabdpa:201631
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    More about this item

    Keywords

    Bundesrepublik Deutschland ; Auswirkungen ; Beschäftigungseffekte ; Beschäftigungsentwicklung ; geschlechtsspezifische Faktoren ; Arbeitslosigkeitsentwicklung ; altersspezifische Faktoren ; Mindestlohn ; Mini-Job ; regionaler Vergleich ; Arbeitsmarktregion ; 2013-2015;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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