The Employment Effect of Industry-Specific, Collectively-Bargained Minimum Wages
This paper estimates the employment effects of industry-specific, collectively-bargained minimum wages in Germany for two occupations associated with the construction sector. I propose a truly exogenous control group in contrast to the control group design used in the literature. Further, a difference-in-differences-in-differences estimator is presented as a robustness test for occupation-specific and/or industry-specific, timevarying, unobserved heterogeneity. I do not find a significantly negative employment effect, even though the minimum wage is binding in (East) Germany. This result can be explained by substitution effects, noncompliance and models of monopsonic competition.
|Date of creation:||Jul 2012|
|Date of revision:|
|Contact details of provider:|| Postal: Hohenzollernstraße 1-3, 45128 Essen|
Web page: http://www.rwi-essen.de/
More information through EDIRC
|Order Information:||Web: http://www.rwi-essen.de/publikationen/|
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.:
- Sara Lemos, 2003.
"Political Variables as Instruments for the Minimum Wage,"
Anais do XXXI Encontro Nacional de Economia [Proceedings of the 31th Brazilian Economics Meeting]
f08, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
- Lemos Sara, 2005. "Political Variables as Instruments for the Minimum Wage," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(1), pages 1-33, December.
- Sara lemos, 2004. "Political Variables as Instruments for the Minimum Wage," Discussion Papers in Economics 04/11, Department of Economics, University of Leicester.
- Sara Lemos, 2004. "Political Variables as Instruments for the Minimum Wage," Labor and Demography 0403010, EconWPA.
- Lemos, Sara, 2004. "Political Variables as Instruments for the Minimum Wage," IZA Discussion Papers 1136, Institute for the Study of Labor (IZA).
- David Neumark & William Wascher, 2004.
"Minimum Wages, Labor Market Institutions, and Youth Employment: A Cross-National Analysis,"
Cornell University, ILR School, vol. 57(2), pages 223-248, January.
- David Naumark & William Wascher, 2003. "Minimum wages, labor market institutions, and youth employment: a cross-national analysis," Finance and Economics Discussion Series 2003-23, Board of Governors of the Federal Reserve System (U.S.).
- 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.
- Pia Rattenhuber, 2011. "Building the Minimum Wage: Germany's First Sectoral Minimum Wage and Its Impact on Wages in the Construction Industry," Discussion Papers of DIW Berlin 1111, DIW Berlin, German Institute for Economic Research.
- Daniel S. Hamermesh & Stephen J. Trejo, 1997.
"The Demand for Hours of Labor: Direct Evidence from California,"
NBER Working Papers
5973, National Bureau of Economic Research, Inc.
- Daniel S. Hamermesh & Stephen J. Trejo, 2000. "The Demand for Hours of Labor: Direct Evidence from California," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 38-47, February.
- Pinoli, Sara, 2010.
"Rational Expectations and the Puzzling No-Effect of the Minimum Wage,"
IZA Discussion Papers
4933, Institute for the Study of Labor (IZA).
- Pinoli, Sara, 2010. "Rational Expectations and the Puzzling No-Effect of the Minimum Wage," Working Paper Series 2010:10, Uppsala University, Department of Economics.
- Pinoli, Sara, 2008. "Rational Expectations and the Puzzling No-Effect of the Minimum Wage," MPRA Paper 11405, University Library of Munich, Germany.
- Pinoli, Sara, 2010. "Rational Expectations and the Puzzling No-E¤ect of the Minimum Wage," Working Paper Series, Center for Labor Studies 2010:10, Uppsala University, Department of Economics.
- Bruce D. Meyer, 1994.
"Natural and Quasi- Experiments in Economics,"
NBER Technical Working Papers
0170, National Bureau of Economic Research, Inc.
- Barry T. Hirsch & Bruce E. Kaufman & Tetyana Zelenska, 2015.
"Minimum Wage Channels of Adjustment,"
Industrial Relations: A Journal of Economy and Society,
Wiley Blackwell, vol. 54(2), pages 199-239, 04.
- Schmucker, Alexandra & Seth, Stefan, 2009. "BA-Beschäftigtenpanel 1998-2007 Codebuch," FDZ Datenreport. Documentation on Labour Market Data 200901_de, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
- Addison, John T. & Blackburn, McKinley L. & Cotti, Chad D., 2009. "Do minimum wages raise employment? Evidence from the U.S. retail-trade sector," Labour Economics, Elsevier, vol. 16(4), pages 397-408, August.
When requesting a correction, please mention this item's handle: RePEc:rwi:repape:0348. 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: (Sabine Weiler)
If references are entirely missing, you can add them using this form.