IDEAS home Printed from https://ideas.repec.org/p/zbw/iwhdps/312017.html
   My bibliography  Save this paper

The minimum wage effects on skilled crafts sector in Saxony-Anhalt

Author

Listed:
  • Brautzsch, Hans-Ulrich
  • Schultz, Birgit

Abstract

This paper examines the effects of the minimum wage introduction in Germany in 2015 on the skilled crafts sector in Saxony-Anhalt. Using novel survey data on the skilled crafts sector in Saxony-Anhalt, we examine three questions: (1) How many employees are affected by the minimum wage introduction in the skilled crafts sector in Saxony- Anhalt? (2) What are the effects of the minimum wage introduction? (3) How have firms reacted to wage increase? We find that about 8% of all employees in the skilled crafts sector in Saxony-Anhalt are directly affected by the minimum wage introduction. A difference-in-difference estimation reveals no significant employment effects of the minimum wage introduction. We test for alternative adjustment strategies and observe a significant increase of output prices.

Suggested Citation

  • Brautzsch, Hans-Ulrich & Schultz, Birgit, 2017. "The minimum wage effects on skilled crafts sector in Saxony-Anhalt," IWH Discussion Papers 31/2017, Halle Institute for Economic Research (IWH).
  • Handle: RePEc:zbw:iwhdps:312017
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/173202/1/1011272180.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Pusch, Toralf & Rehm, Miriam, 2017. "Mindestlohn, Arbeitsqualität und Arbeitszufriedenheit," WSI-Mitteilungen, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 70(7), pages 491-498.
    2. Stefan Sauer & Przemyslaw Wojciechowski, 2016. "Wie reagierten die deutschen Firmen auf die Einführung des Mindestlohns?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 69(07), pages 62-64, April.
    3. Bosch, Gerhard & Weinkopf, Claudia, 2014. "Zur Einführung des gesetzlichen Mindestlohns von 8,50 € in Deutschland," Arbeitspapiere 304, Hans-Böckler-Stiftung, Düsseldorf.
    4. Robert Lehmann & Joachim Ragnitz & Michael Weber, 2015. "Mindestlohn in Ostdeutschland: Firmen planen Preiserhöhungen und Personalabbau," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 22(01), pages 40-42, February.
    5. Bernd Fitzenberger & Annabelle Doerr, 2016. "Konzeptionelle Lehren aus der ersten Evaluationsrunde der Branchenmindestlöhne in Deutschland [Conceptual lessons from the evaluation studies on sectoral minimum wages in Germany]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 49(4), pages 329-347, December.
    6. Michael Weber, 2016. "Der flächendeckende Mindestlohn in Ost- und Westdeutschland: Erwartungen undWirklichkeit," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 23(03), pages 36-40, June.
    7. Knabe Andreas & Schöb Ronnie & Thum Marcel, 2014. "Der flächendeckende Mindestlohn," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 15(2), pages 133-157, June.
    8. Christian Erthle & Klaus Wohlrabe & Przemyslaw Wojciechowski, 2014. "Der flächendeckende Mindestlohn und die Reaktion der Unternehmen – Ergebnisse einer Sonderumfrage im ifo Konjunkturtest," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 67(23), pages 50-52, December.
    9. Bossler, Mario & Jaenichen, Ursula, 2017. "Der gesetzliche Mindestlohn aus betrieblicher Sicht," WSI-Mitteilungen, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 70(7), pages 482-490.
    10. Lesch, Hagen & Schröder, Christoph, 2016. "Ein Jahr gesetzlicher Mindestlohn: Ein Faktencheck," IW-Trends – Vierteljahresschrift zur empirischen Wirtschaftsforschung, Institut der deutschen Wirtschaft (IW) / German Economic Institute, vol. 43(2), pages 57-73.
    11. Przemyslaw Wojciechowski & Timo Wollmershäuser, 2015. "Der Mindestlohn: Ein erster Rückblick auf die Sonderfrage," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 68(05), pages 38-41, March.
    12. Antje Schubert & Johannes Steinbrecher & Marcel Thum & Michael Weber, 2016. "Auswirkungen des flächendeckenden Mindestlohns auf die gewerbliche Wirtschaft im Freistaat Sachsen," ifo Dresden Studien, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 77, October.
    13. Karl Brenke & Kai-Uwe Müller, 2013. "Gesetzlicher Mindestlohn: kein verteilungspolitisches Allheilmittel," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 80(39), pages 3-17.
    14. Heumer, Moritz & Lesch, Hagen & Schröder, Christoph, 2013. "Mindestlohn, Einkommensverteilung und Armutsrisiko," IW-Trends – Vierteljahresschrift zur empirischen Wirtschaftsforschung, Institut der deutschen Wirtschaft (IW) / German Economic Institute, vol. 40(1), pages 19-36.
    15. Brautzsch, Hans-Ulrich & Schultz, Birgit, 2015. "Aktuelle Trends: Mindestlohn von 8,50 Euro: Hohe Betroffenheit in arbeitsintensiven Branchen," Wirtschaft im Wandel, Halle Institute for Economic Research (IWH), vol. 21(1), pages 3-3.
    16. Vom Berge, Philipp & Kaimer, Steffen & Copestake, Silvina & Eberle, Johanna & Klosterhuber, Wolfram & Krüger, Jonas & Trenkle, Simon & Zakrocki, Veronika, 2016. "Arbeitsmarktspiegel: Entwicklungen nach Einführung des Mindestlohns (Ausgabe 1)," IAB-Forschungsbericht 201601, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    17. Brautzsch, Hans-Ulrich & Schultz, Birgit, 2013. "Im Fokus: Mindestlohn von 8,50 Euro: Wie viele verdienen weniger, und in welchen Branchen arbeiten sie?," Wirtschaft im Wandel, Halle Institute for Economic Research (IWH), vol. 19(3), pages 53-56.
    18. Antje Schubert & Michael Weber, 2016. "Der flächendeckende Mindestlohn in Sachsen: Hohe Reichweite, vielfältige Reaktionen derBetriebe," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 23(03), pages 05-11, June.
    19. Karl Brenke, 2014. "Mindestlohn: Zahl der anspruchsberechtigten Arbeitnehmer wird weit unter fünf Millionen liegen," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 81(5), pages 71-77.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Brautzsch Hans-Ulrich & Schultz Birgit, 2018. "Auswirkungen des gesetzlichen Mindestlohns im Handwerk in Sachsen-Anhalt," Zeitschrift für Wirtschaftspolitik, De Gruyter, vol. 67(2), pages 125-152, August.
    2. Bossler, Mario & Gürtzgen, Nicole & Lochner, Benjamin & Betzl, Ute & Feist, Lisa & Wegmann, Jakob, 2018. "Auswirkungen des gesetzlichen Mindestlohns auf Betriebe und Unternehmen," IAB-Forschungsbericht 201804, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. 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.
    4. Stefan Sauer & Klaus Wohlrabe, 2020. "ifo Handbuch der Konjunkturumfragen," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 88.
    5. 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.
    6. Bofinger, Peter & Schnabel, Isabel & Feld, Lars P. & Schmidt, Christoph M. & Wieland, Volker, 2015. "Zukunftsfähigkeit in den Mittelpunkt. Jahresgutachten 2015/16," Annual Economic Reports / Jahresgutachten, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung, volume 127, number 201516.
    7. Koch, Andreas & Kirchmann, Andrea & Reiner, Marcel & Scheu, Tobias & Zühlke, Anne & Bonin, Holger, 2020. "Verhaltensmuster von Betrieben und Beschäftigten im Kontext des gesetzlichen Mindestlohns," IZA Research Reports 97, Institute of Labor Economics (IZA).
    8. Joachim Möller & Karl Brenke & Gert Wagner & Thorsten Schulten & Gustav Horn & Hagen Lesch & Alexander Mayer & Lisa Schmid & Patrick Arni & Werner Eichhorst & Alexander Spermann & Klaus Zimmermann, 2014. "Das Mindestlohngesetz — Hoffnungen und Befürchtungen," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 94(6), pages 387-406, June.
    9. Arne Heise & Toralf Pusch, 2020. "Introducing minimum wages in Germany employment effects in a post Keynesian perspective," Journal of Evolutionary Economics, Springer, vol. 30(5), pages 1515-1532, November.
    10. Wolfgang Nierhaus & Timo Wollmershäuser, 2016. "ifo Konjunkturumfragen und Konjunkturanalyse: Band II," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 72, October.
    11. Heise, Arne, 2018. "Reconciling Facts with Fiction, or: A Theoretical Speculation of why the Minimum Wage has no Discernible Effect on Employment," MPRA Paper 92483, University Library of Munich, Germany.
    12. Bachmann, Ronald & Boockmann, Bernhard & Gonschor, Myrielle & Kalweit, René & Klauser, Roman & Laub, Natalie & Rulff, Christian & Vonnahme, Christina, 2022. "Auswirkungen des gesetzlichen Mindestlohns auf Löhne und Arbeitszeiten," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 264288.
    13. Marco Caliendo & Alexandra Fedorets & Malte Preuss & Carsten Schröder & Linda Wittbrodt, 2017. "The Short-Term Distributional Effects of the German Minimum Wage Reform," SOEPpapers on Multidisciplinary Panel Data Research 948, DIW Berlin, The German Socio-Economic Panel (SOEP).
    14. Bofinger, Peter & Schnabel, Isabel & Feld, Lars P. & Schmidt, Christoph M. & Wieland, Volker, 2014. "Mehr Vertrauen in Marktprozesse. Jahresgutachten 2014/15," Annual Economic Reports / Jahresgutachten, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung, volume 127, number 201415.
    15. Antje Schubert & Johannes Steinbrecher & Marcel Thum & Michael Weber, 2016. "Auswirkungen des flächendeckenden Mindestlohns auf die gewerbliche Wirtschaft im Freistaat Sachsen," ifo Dresden Studien, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 77, October.
    16. Bachmann, Ronald & Bonin, Holger & Boockmann, Bernhard & Demir, Gökay & Felder, Rahel & Isphording, Ingo & Kalweit, René & Laub, Natalie & Vonnahme, Christina & Zimpelmann, Christian, 2020. "Auswirkungen des gesetzlichen Mindestlohns auf Löhne und Arbeitszeiten: Studie im Auftrag der Mindestlohnkommission," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 222998.
    17. Antje Schubert & Michael Weber, 2016. "Der flächendeckende Mindestlohn in Sachsen: Hohe Reichweite, vielfältige Reaktionen derBetriebe," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 23(03), pages 05-11, June.
    18. Andreas Knabe & Ronnie Schöb & Marcel Thum & Michael Weber, 2016. "Mindestlohn ohne Nebenwirkungen?," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 23(03), pages 32-35, June.
    19. Kriehn, Claudia, 2014. "Konsequenzen des Mindestlohns für Arbeitgeber und Arbeitnehmer in der Landwirtschaft: Hypothesen und Datenlage," Thünen Working Papers 37, Johann Heinrich von Thünen Institute, Federal Research Institute for Rural Areas, Forestry and Fisheries.
    20. Steffen Henzel & Kira Engelhardt, 2014. "Arbeitsmarkteffekte des flächendeckenden Mindestlohns in Deutschland – eine Sensitivitätsanalyse," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 67(10), pages 23-29, May.

    More about this item

    Keywords

    minimum wage; employment; difference-in-differences estimations; Saxony-Anhalt;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:zbw:iwhdps:312017. 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: . General contact details of provider: https://edirc.repec.org/data/iwhhhde.html .

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/iwhhhde.html .

    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.