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The employment effects of raising negotiated minimum wages for apprentices

Author

Listed:
  • Carolin Linckh
  • Caroline Neuber-Pohl
  • Harald Pfeifer

Abstract

This study examines the employment effects of raising the minimum wages for underage apprentices in Germany. To estimate our effects, we exploit age-, sector-, and state-level variations of negotiated minimum wage increases within a triple difference framework. Using a full sample of apprenticeship contracts, we find negative employment effects, as the number of training contracts for underage apprentices decreases significantly due to the minimum wage adjustments. Furthermore, we find that the negative employment effect increases with the size of the minimum wage adjustments. The effects are mainly driven by a reduction in contracts for low-qualified training applicants and for sectors where firms mainly follow a substitution- rather than an investment-oriented training strategy.

Suggested Citation

  • Carolin Linckh & Caroline Neuber-Pohl & Harald Pfeifer, 2023. "The employment effects of raising negotiated minimum wages for apprentices," Economics of Education Working Paper Series 0202, University of Zurich, Department of Business Administration (IBW).
    • Handle: RePEc:iso:educat:0202
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    More about this item

    Keywords

    Minimum wage; Apprenticeship market; Collective bargaining;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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