IDEAS home Printed from https://ideas.repec.org/a/jns/jbstat/v240y2020i2-3p233-267n6.html
   My bibliography  Save this article

The Impact of the Minimum Wage on Working Hours

Author

Listed:
  • Burauel Patrick

    ()

  • Grabka Markus M.

    ()

  • Schröder Carsten

    () (DIW Berlin/SOEP, Berlin, Germany)

  • Caliendo Marco

    () (University of Potsdam, August-Bebel-Str. 89, 14482Potsdam, Germany)

  • Obst Cosima

    () (University of Potsdam, Potsdam, Germany)

  • Preuss Malte

    () (Free University Berlin, Berlin, Germany)

Abstract

The present paper analyzes how the statutory minimum wage introduced on January 1, 2015, has affected working hours in Germany up to 2016. The data used come from the Socio-Economic Panel (SOEP), which provides not only contractual working hours but also actual hours worked. Using a difference-in-differences estimation approach, we find a significant and robust reduction in contractual working hours among employees who are subject to social security contributions and earned less than the minimum wage before the introduction. The effect in 2015 is about −5 % and corresponds to a 1.7 hours reduction in average weekly working hours. The effect on actual hours is smaller and estimated less precisely. Extending the analysis until 2016 does not yield significant effects on contractual or actual working hours, while some specifications reject the common trend assumption.

Suggested Citation

  • Burauel Patrick & Grabka Markus M. & Schröder Carsten & Caliendo Marco & Obst Cosima & Preuss Malte, 2020. "The Impact of the Minimum Wage on Working Hours," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 240(2-3), pages 233-267, April.
  • Handle: RePEc:jns:jbstat:v:240:y:2020:i:2-3:p:233-267:n:6
    as

    Download full text from publisher

    File URL: https://www.degruyter.com/view/j/jbnst.2020.240.issue-2-3/jbnst-2018-0081/jbnst-2018-0081.xml?format=INT
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    minimum wage; working hours; DiD estimation;

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jns:jbstat:v:240:y:2020:i:2-3:p:233-267:n:6. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Golla). General contact details of provider: https://www.degruyter.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.