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Does organizational context matter? An examination of the factors influencing employees’ judgments of minimum wage increases

Author

Listed:
  • Dütsch, Matthias

    (BAuA und Universität Bamberg)

  • Senghaas, Monika

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

  • Stephan, Gesine

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

  • Struck, Olaf

    (Universität Bamberg)

Abstract

"This article presents novel findings on company factors that determine judgments regarding the fairness of minimum wage increases. Drawing on minimum wage and organizational justice research, we conducted a factorial survey among German employees. It seems that the internal wage structure plays a crucial role because raising only the pay of minimum wage workers and not that of other employees causes a minimum wage increase to be rated as less fair. While a hiring freeze does not negatively influence fairness judgments, layoffs do. Finally, if a minimum wage increase adversely affects a company’s economic situation, respondents assess it as less fair." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Dütsch, Matthias & Senghaas, Monika & Stephan, Gesine & Struck, Olaf, 2025. "Does organizational context matter? An examination of the factors influencing employees’ judgments of minimum wage increases," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 59, pages 1-006.
    • Handle: RePEc:iab:iabjlr:v:59:i::p:a006
    DOI: 10.1186/s12651-025-00392-3
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    References listed on IDEAS

    as
    1. Konow, James, 2001. "Fair and square: the four sides of distributive justice," Journal of Economic Behavior & Organization, Elsevier, vol. 46(2), pages 137-164, October.
    2. Mark B. Stewart, 2012. "Quantile estimates of counterfactual distribution shifts and the effect of minimum wage increases on the wage distribution," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 175(1), pages 263-287, January.
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