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The minimum wage: An effective means to regain the electorate’s confidence?

Author

Listed:
  • Laub, Natalie
  • Kalweit, René

Abstract

This paper analyses whether the introduction of the minimum wage in Germany had an effect on the electorate's support for ruling parties. Estimations base on data from a large household survey and exploit regional differences in the bite of the minimum wage. The results show that in regions where the bite of the minimum wage was higher, the support for ruling parties significantly decreased in the year in which the minimum wage was introduced. Individuals with earnings just above the minimum wage mainly drive this result, which is robust to different model specifications.

Suggested Citation

  • Laub, Natalie & Kalweit, René, 2021. "The minimum wage: An effective means to regain the electorate’s confidence?," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242440, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc21:242440
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    File URL: https://www.econstor.eu/bitstream/10419/242440/1/vfs-2021-pid-50447.pdf
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    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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