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Turning the Switch: An Evaluation of the Minimum Wage in the German Electrical Trade Using Repeated Natural Experiments

Author

Listed:
  • Boockmann Bernhard
  • Krumm Raimund
  • Rattenhuber Pia

    (Institute for Applied Economic Research (Institut für Angewandte Wirtschaftsforschung, IAW), Tübingen, Germany)

  • Neumann Michael

    (German Institute for Economic Research (Deutsches Institut für Wirtschaftsforschung, DIW), Mohrenstraße 58, Berlin, Germany)

Abstract

The introduction, abolition and subsequent re-introduction of the minimum wage in the German electrical trade gave rise to series of natural experiments, which are used to study minimum wage effects. We find similar impacts in all three cases on wages, employment and the receipt of public welfare benefits. Average wages are raised by the minimum wage in East Germany, but there is almost no evidence for employment effects. The results also show that the wage effect is quickly undone after the abolition of the minimum wage.

Suggested Citation

  • Boockmann Bernhard & Krumm Raimund & Rattenhuber Pia & Neumann Michael, 2013. "Turning the Switch: An Evaluation of the Minimum Wage in the German Electrical Trade Using Repeated Natural Experiments," German Economic Review, De Gruyter, vol. 14(3), pages 316-348, August.
    • Handle: RePEc:bpj:germec:v:14:y:2013:i:3:p:316-348
    DOI: 10.1111/geer.12016
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    Citations

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    Cited by:

    1. Schumann, Mathias, 2017. "The effects of minimum wages on firm-financed apprenticeship training," Labour Economics, Elsevier, vol. 47(C), pages 163-181.
    2. Börschlein, Erik-Benjamin & Bossler, Mario, 2019. "Eine Bilanz nach fünf Jahren gesetzlicher Mindestlohn: Positive Lohneffekte, kaum Beschäftigungseffekte (Five Years of statutory minimum wage in Germany: Significant wage effects, barely any employmen," IAB-Kurzbericht 201924, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. Kugler Franziska & Schwerdt Guido & Wößmann Ludger, 2014. "Ökonometrische Methoden zur Evaluierung kausaler Effekte der Wirtschaftspolitik," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 15(2), pages 105-132, June.

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