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Do minimum wages increase job satisfaction? : micro data evidence from the new German minimum wage

Author

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  • Bossler, Mario

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

  • Broszeit, Sandra

    (IAB)

Abstract

"On 1 January 2015 a new statutory minimum wage of EURO 8.50 per hour of work was introduced in Germany. Using a difference-in-differences approach, we estimate effects on worker-level outcomes of continuing employees. The results reveal a meaningful absolute increase in the affected workers' pay satisfaction. The increase in job satisfaction is modest and predominantly driven by changes in pay satisfaction implying only a small effect on all other dimensions of job satisfaction. Moreover, effects from the minimum wage on work engagement and turnover intention are virtually zero." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Bossler, Mario & Broszeit, Sandra, 2016. "Do minimum wages increase job satisfaction? : micro data evidence from the new German minimum wage," IAB-Discussion Paper 201615, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  • Handle: RePEc:iab:iabdpa:201615
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    Cited by:

    1. Diriwaechter, Patric & Shvartsman, Elena, 2018. "The anticipation and adaptation effects of intra- and interpersonal wage changes on job satisfaction," Journal of Economic Behavior & Organization, Elsevier, vol. 146(C), pages 116-140.
    2. Bossler Mario & Gürtzgen Nicole & Betzl Ute & Feist Lisa & Lochner Benjamin, 2020. "The German Minimum Wage: Effects on Productivity, Profitability, and Investments," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 240(2-3), pages 321-350, April.
    3. Maczulskij, Terhi & Haapanen, Mika & Kauhanen, Antti & Riukula, Krista, 2021. "Dark Half: Decentralized Bargaining and Well-being at Work," ETLA Working Papers 89, The Research Institute of the Finnish Economy.
    4. Bossler, Mario & Gürtzgen, Nicole & Lochner, Benjamin & Betzl, Ute & Feist, Lisa, 2018. "The German minimum wage: Effects on business expectations, profitability, and investments," FAU Discussion Papers in Economics 13/2018, Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics.
    5. Marco Caliendo & Carsten Schröder & Linda Wittbrodt, 2019. "The Causal Effects of the Minimum Wage Introduction in Germany – An Overview," German Economic Review, Verein für Socialpolitik, vol. 20(3), pages 257-292, August.
    6. Bossler, Mario & Westermeier, Christian, 2020. "Measurement error in minimum wage evaluations using survey data," IAB-Discussion Paper 202011, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    7. SATO Kazuma, 2021. "The Impact of the Minimum Wage Increase on Subjective Wellbeing: Evidence from Japan," Discussion papers 21075, Research Institute of Economy, Trade and Industry (RIETI).
    8. Hafner, Lucas & Lochner, Benjamin, 2019. "Do minimum wages improve self-rated health? : Evidence from a natural experiment," IAB-Discussion Paper 201917, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    9. Hafner, Lucas, 2019. "Do minimum wages improve self-rated health? Evidence from a natural experiment," FAU Discussion Papers in Economics 02/2019, Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics.
    10. Filiz Gülal & Adam Ayaita, 2020. "The Impact of Minimum Wages on Well-Being: Evidence from a Quasi-experiment in Germany," Journal of Happiness Studies, Springer, vol. 21(7), pages 2669-2692, October.
    11. Redmond, Paul & Maître, Bertrand & McGuinness, Seamus & Maragkou, Konstantina, 2021. "A comparative assessment of minimum wage employment in Europe," Research Series, Economic and Social Research Institute (ESRI), number RS123.
    12. Andreas Koch & Andrea Kirchmann & Marcel Reiner & Tobias Scheu & Holger Bonin, 2018. "Rather a trigger than a cause of change.Responses of firms and workers to the statutory minimum wage in Germany," IAW Discussion Papers 132, Institut für Angewandte Wirtschaftsforschung (IAW).
    13. Mario Bossler & Joachim Möller, 2019. "The Effects of the Compulsory Minimum Wage in Germany," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 16(04), pages 14-18, January.
    14. Bossler, Mario & Schank, Thorsten, 2020. "Wage Inequality in Germany after the Minimum Wage Introduction," IZA Discussion Papers 13003, Institute of Labor Economics (IZA).
    15. Jiwei Chen, 2021. "Do minimum wage increases benefit worker health? Evidence from China," Review of Economics of the Household, Springer, vol. 19(2), pages 473-499, June.
    16. Teresa Backhaus & Kai-Uwe Müller, 2019. "Does the German Minimum Wage Help Low Income Households?: Evidence from Observed Outcomes and the Simulation of Potential Effects," Discussion Papers of DIW Berlin 1805, DIW Berlin, German Institute for Economic Research.
    17. Oliver Bruttel, 2019. "The effects of the new statutory minimum wage in Germany: a first assessment of the evidence," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 53(1), pages 1-13, December.
    18. repec:ces:ifodic:v:16:y:2019:i:4:p:50000000004802 is not listed on IDEAS
    19. Koch, Andreas & Kirchmann, Andrea & Reiner, Marcel & Scheu, Tobias & Boockmann, Bernhard & Bonin, Holger, 2018. "Verhaltensmuster von Betrieben und Beschäftigten im Zuge der Einführung des gesetzlichen Mindestlohns," IZA Research Reports 84, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Bundesrepublik Deutschland ; Mindestlohn ; Arbeitnehmerkündigung ; IAB-Datensatz Linked Personnel Panel ; Arbeitsmotivation ; Zufriedenheit;
    All these keywords.

    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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