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Side effects of the new German minimum wage on (un-)employment : first evidence from regional data

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  • Garloff, Alfred

    (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

Abstract

"In Germany, decreasing collective bargaining coverage and rising wage inequality led to the introduction of a new statutory minimum wage of EURO 8.50 per hour of work. We analyze the relationship between the bite of the minimum wage and employment/ unemployment growth using regional data of the Federal Employment Agency for prime age individuals. We use difference-in-differences type of specifications using a panel of region-age-sex cells. The results do not provide evidence in favor of a reduced employment growth for the analysed groups, nor do they provide evidence for an increase in unemployment growth due to the minimum wage. However, we find an increase in growth of regular employment at the expense of marginal employment." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Garloff, Alfred, 2016. "Side effects of the new German minimum wage on (un-)employment : first evidence from regional data," IAB Discussion Paper 201631, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  • Handle: RePEc:iab:iabdpa:201631
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    Cited by:

    1. Bonin Holger & Isphording Ingo E. & Krause-Pilatus Annabelle & Pestel Nico & Rinne Ulf & Lichter Andreas, 2020. "The German Statutory Minimum Wage and Its Effects on Regional Employment and Unemployment," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 240(2-3), pages 295-319, April.
    2. Caliendo, Marco & Fedorets, Alexandra & Preuss, Malte & Schröder, Carsten & Wittbrodt, Linda, 2018. "The short-run employment effects of the German minimum wage reform," Labour Economics, Elsevier, vol. 53(C), pages 46-62.
    3. Holtemöller, Oliver & Pohle, Felix, 2020. "Employment effects of introducing a minimum wage: The case of Germany," Economic Modelling, Elsevier, vol. 89(C), pages 108-121.
    4. Braun, Helge & Döhrn, Roland & Krause, Michael & Micheli, Martin & Schmidt, Torsten, 2020. "Macroeconomic Long-Run Effects of the German Minimum Wage when Labor Markets are Frictional," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 351-386.
    5. Gürtzgen, Nicole & Blömer, Maximilian & Pohlan, Laura & Stichnoth, Holger & van den Berg, Gerard, 2016. "Estimating an Equilibrium Job Search Model for the German Labour Market," VfS Annual Conference 2016 (Augsburg): Demographic Change 145950, Verein für Socialpolitik / German Economic Association.
    6. Blömer, Maximilian J. & Guertzgen, Nicole & Pohlan, Laura & Stichnoth, Holger & van den Berg, Gerard J., 2018. "Unemployment effects of the German minimum wage in an equilibrium job search model," ZEW Discussion Papers 18-032, ZEW - Leibniz Centre for European Economic Research.
    7. Aleksandra Majchrowska & Pawe³ Strawiñski, 2019. "Minimum wage workers in the private sector in Poland: regional perspective," Lodz Economics Working Papers 1/2019, University of Lodz, Faculty of Economics and Sociology.
    8. Braun, Helge & Döhrn, Roland & Krause, Michael & Micheli, Martin & Schmidt, Torsten, 2020. "Macroeconomic Long-Run Effects of the German Minimum Wage when Labor Markets are Frictional," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 351-386.

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    More about this item

    Keywords

    Mindestlohn - Auswirkungen; Beschäftigungseffekte; Arbeitslosigkeitsentwicklung; Beschäftigungsentwicklung; regionaler Vergleich; Arbeitsmarktregion; altersspezifische Faktoren; geschlechtsspezifische Faktoren; Mini-Job;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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