Das Entsendegesetz: Suendenfall oder Loesung des Arbeitslosigkeitsproblems?
In March 1996, the Bundestag introduced a minimum wage law for the German construction business in order to protect native workers from low wage competition by posted workers from other EU countries. This Entsendegesetz (Posted Workers Act) was backed formally by the EU Posted Workers Directive of December 1996. This paper analyzes the economic and political background of the law as well as its impact on the German construction business according to economic theory and provisional empirical evidence from similar protective measures taken in the U.S. The effectiveness of the law is seriously limited by practical and conceptional problems, like resource constraints in control, shifts from legal to illegal employment, or compatibility with basic EU law and principles. Moreover, since the central problems of the German construction business are structural, one cannot expect much of a relief for the labor market of native workers. Since the Entsendegesetz seems therefore only justifiable in the short run in order to smoothen structural adjustment and to avoid political unrest and xenophobia, it should not be extended.
|Date of creation:||May 1998|
|Date of revision:|
|Publication status:||published in: Staatswissenschaften und Staatspraxis, 1998, 9 (2), 191-208; see IZA Reprints 4/99|
|Contact details of provider:|| Postal: |
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Brown, Charles & Gilroy, Curtis & Kohen, Andrew, 1982. "The Effect of the Minimum Wage on Employment and Unemployment," Journal of Economic Literature, American Economic Association, vol. 20(2), pages 487-528, June.
- Machin, Stephen & Manning, Alan, 1996. "Employment and the Introduction of a Minimum Wage in Britain," Economic Journal, Royal Economic Society, vol. 106(436), pages 667-76, May.
- Volker Rußig, 1996. "Bauwirtschaft in Deutschland : beschleunigter Strukturwandel," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 49(25-26), pages 14-29, October.
- David Card & Alan Krueger, 1993.
"Minimum Wages and Employment: A Case Study of the Fast Food Industry in New Jersey and Pennsylvania,"
694, Princeton University, Department of Economics, Industrial Relations Section..
- Card, David & Krueger, Alan B, 1994. "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania," American Economic Review, American Economic Association, vol. 84(4), pages 772-93, September.
- David Card & Alan B. Krueger, 1993. "Minimum Wages and Employment: A Case Study of the Fast Food Industry in New Jersey and Pennsylvania," NBER Working Papers 4509, National Bureau of Economic Research, Inc.
- Klaus F. Zimmermann, 1995. "Tackling the European Migration Problems," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 45-62, Spring.
- Charles Brown & Curtis Gilroy & Andrew Kohen, 1982. "The Effect of the Minimum Wage on Employment and Unemployment: A Survey," NBER Working Papers 0846, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp8. 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: (Mark Fallak)
If references are entirely missing, you can add them using this form.