Wage Inequality In Germany After The Minimum Wage Introduction
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Wage Inequality In Germany After The Minimum Wage Introduction
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Author : Mario Bossler
language : en
Publisher:
Release Date : 2020
Wage Inequality In Germany After The Minimum Wage Introduction written by Mario Bossler and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2020 with categories.
We revisit the development of monthly wages in Germany between 2000 and 2017. While wage inequality strongly increased during the first years of this period, it recently returned to its initial level, raising the question what the role of the German minimum wage introduction for this reversal is. We identify effects of the minimum wage from difference-in-differences based on unconditional quantile regressions applied to German administrative employment data. The results show significant wage effects of varying magnitudes along the lower half of the wage distribution. Employment dynamics do not explain effects along the wage distribution, implying strong wage increases among the existing workforce. The increased individual labor income is not offset by decreasing social benefits. Overall, the introduction of the minimum wage can account for about half of the recent decrease in wage inequality.
The Causal Effects Of The Minimum Wage Introduction In Germany
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Author : Marco Caliendo
language : en
Publisher:
Release Date : 2019
The Causal Effects Of The Minimum Wage Introduction In Germany written by Marco Caliendo and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2019 with categories.
In 2015, Germany introduced a statutory hourly minimum wage that was not only universally binding but also set at a relatively high level. We discuss the short-run effects of this new minimum wage on a wide set of socio-economic outcomes, such as employment and working hours, earnings and wage inequality, dependent and selff-employment, as well as reservation wages and satisfaction. We also discuss diffculties in the implementation of the minimum wage and the measurement of its effects related to non-compliance and suitability of data sources. Two years after the minimum wage introduction, the following conclusions can be drawn: while hourly wages increased for low-wage earners, some small negative employment effects are also identifiable. The effects on aspired goals, such as poverty and inequality reduction, have not materialized in the short run. Instead, a tendency to reduce working hours is found, which alleviates the desired positive impact on monthly income. Additionally, the level of non-compliance was substantial in the short run, thus drawing attention to problems when implementing such a wide reaching policy.
The Introduction Of The Minimum Wage In Germany And Its Effects On Ethnic Wage Inequality
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Author : Niklas Schröder
language : en
Publisher:
Release Date : 2021
The Introduction Of The Minimum Wage In Germany And Its Effects On Ethnic Wage Inequality written by Niklas Schröder and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2021 with categories.
Minimum Wage In Germany
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Author : Kai Ingwersen
language : en
Publisher:
Release Date : 2022
Minimum Wage In Germany written by Kai Ingwersen and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2022 with categories.
This paper investigates the effects of the introduction of a statutory minimum wage in Germany on the wages and employment of migrants. Migrants are an overrepresented group in the low-wage sector and can be expected to particularly benefit from a minimum wage. We combine a "differential trend adjusted difference-in-differences estimator" (DTADD) and descriptive evidence to evaluate the impact of the minimum wage introduction in 2015 on hourly wages, monthly salaries, working hours and changes in employment and wage distribution. Contrary to expectations, our results show that the introduction of the minimum wage has weakened the position of migrants in the low-wage sector compared to their native counterparts. We observe an increase in part-time employment, a less pronounced decline in unemployment and a greater reduction in weekly working hours among migrants. The introduction of the minimum wage caused a temporary convergence in hourly wages between migrants and natives, which subsequently turned into a wage divergence. Migrant men in the low-wage sector have been particularly negatively affected by the introduction of the minimum wage. Moreover, increasing hourly wages have not translated into higher monthly salaries, thus widening wage inequality between migrants and natives.
Revisiting The German Wage Structure
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Author : Benjamin Bruns
language : en
Publisher: GRIN Verlag
Release Date : 2013-08-26
Revisiting The German Wage Structure written by Benjamin Bruns and has been published by GRIN Verlag this book supported file pdf, txt, epub, kindle and other format this book has been release on 2013-08-26 with Business & Economics categories.
Seminar paper from the year 2013 in the subject Economics - Job market economics, grade: 1,0, Humboldt-University of Berlin (Angewandte Mikroökonometrie / Arbeitsmarktökonomik), course: Topics in Labour Economics, language: English, abstract: Using a large administrative data set, a recent study by Dustmann, Ludsteck, and Schönberg [2009] finds convincing evidence for rising wage inequality in West Germany during the past three decades. Their paper shows that the increase occurred above the median during the 1980s, and was augmented by rising inequality below the median in the 1990s. These results challenge the pervasive conception of the German wage structure being a paragon of stability. Within the scope of this seminar paper, I replicate parts of their analysis using a different data set, namely the German Socio-Economic Panel (GSOEP) for the period from 1984 to 2009. Using monthly and hourly earnings constructs, I assess the extent to which the results of Dustmann, Ludsteck, and Schönberg [2009] can be recovered from GSOEP data. I do so by exploring the wage distribution along several dimensions. In addition to this, I analyze composition-constant counterfactual wage densities using the kernel density reweighting method advanced by DiNardo, Fortin, and Lemieux [1996]. A provisional evaluation of my results suggests that I can confirm the majority of findings of the original paper along a qualitative dimension. A quantitative assessment, however, reveals considerable deviations.
Minimum Wages And Employment Theory And Empirical Evidence With A Special Emphasis On Germany
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Author : Peter Schmidt
language : en
Publisher: GRIN Verlag
Release Date : 2009-02-10
Minimum Wages And Employment Theory And Empirical Evidence With A Special Emphasis On Germany written by Peter Schmidt and has been published by GRIN Verlag this book supported file pdf, txt, epub, kindle and other format this book has been release on 2009-02-10 with Political Science categories.
Master's Thesis from the year 2008 in the subject Business economics - Economic Policy, grade: 1,0 (A), University of Wisconsin-Milwaukee (Department of Economics), course: Labor Economics II, language: English, abstract: One of the most important issues that was in the center of the political debate in Germany in the last few months is the introduction of minimum wages. It was caused by the politically forced imposition of a minimum wage in the sector for postal services which, in the view of many experts, provides a competitive advantage for the major postal service company “Deutsche Post World Net”1 compared to its competitors. Then it happened that the “PIN – Group AG” one of the most important domestic competitors of the “Deutsche Post World Net” was threatened by insolvency as its largest shareholder the publisher “Axel Springer AG” was no longer willing to invest money in the “PIN - Group AG”. Additionally, many newspapers published by Axel Springer AG wrote articles against the imposition of a minimum wage for many weeks and published many interviews with economic experts warning about the negative effects of a minimum wage on the overall German labor market. Furthermore, political considerations, e.g. by the secretary of labor, to introduce a federal minimum wage in Germany even caused the chairmen of the eight leading economic research institutes in Germany to publish a letter in the newspaper “Das Handelsblatt”2 where they advise politicians against the introduction of a federal minimum wage if (large) employment losses should be avoided. On the other hand, a few other researchers, experts and politicians like the “IAB”3 as a specific labor market research institute believe that minimum wages even could create jobs and must not necessarily destroy them. This paper is motivated by this ongoing debate between economists and policymakers in the whole world. That is why in the first part of the paper the major theoretical framework which is used by economists to analyze and empirically assess the impacts of minimum wages on employment should be presented.
Mind The Gap Effects Of The National Minimum Wage On The Gender Wage Gap In Germany
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Author : Ramona Schmid
language : en
Publisher:
Release Date : 2022
Mind The Gap Effects Of The National Minimum Wage On The Gender Wage Gap In Germany written by Ramona Schmid and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2022 with categories.
With its introduction in 2015, the statutory minimum wage in Germany intends to benefit primarily low-wage workers. Thus, this paper aims at estimating the effectiveness of the im- plemented wage floor on gender wage gaps in the lower half of the wage distribution. Using administrative data, distinct regional differences regarding magnitudes of wage differentials and responses to the minimum wage are identified. Overall, wage gaps between men and women at the 10th percentile decrease by 2.46 and 6.34 percentage points respectively in the West and East of Germany after 2015. Applying counterfactual wage distributions, the study provides new evidence that around 60% and even 95% of the decline result from the introduction of the minimum wage in each region. Further, group-specific analyses identify concrete responses on the basis of age, educational level and occupational activity. Having yearly data, the study ad- ditionally reveals new results on the impact of the successive minimum wage raises in 2017 and 2019. Counterfactual aggregate decompositions of gender wage gaps finally indicate a decrease in discriminatory remuneration structures in the West of Germany due to the introduced wage floor.
Three Essays On Wage Inequality In Germany
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Author : Ramona Schmid
language : en
Publisher:
Release Date : 2023
Three Essays On Wage Inequality In Germany written by Ramona Schmid and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2023 with categories.
Minimum Wage Effects In Germany And Europe
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Author : Linda Wittbrodt
language : en
Publisher:
Release Date : 2022
Minimum Wage Effects In Germany And Europe written by Linda Wittbrodt and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2022 with categories.
On January 1, 2015, Germany introduced a general statutory minimum wage of €8.50 gross per hour. This thesis analyses the effects of the minimum wage introduction in Germany as well as wage floors in the European context, contributing to national and international research. The second chapter of this dissertation summarizes the short-run effects of the minimum wage reform found in previous studies. We show that the introduction of the minimum wage had a positive effect on wages at the bottom of the distribution. Yet, there was still a significant amount of non-compliance shortly after the reform. Additionally, previous evidence points to small negative employment effects mainly driven by a reduction in mini-jobs. Contrary to expectations, though, there were no effects on poverty and general inequality found in the short run. This is mostly due to the fact that working hours were reduced and the increase of hourly wages was therefore not reflected in monthly wages. The third chapter identifies whether the job losses ...
Evolution Of The East German Wage Structure
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Author : Eduard Brüll
language : en
Publisher:
Release Date : 2020
Evolution Of The East German Wage Structure written by Eduard Brüll and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2020 with categories.
We analyze the evolution of the wage structure in East Germany over the past two decades and compare it to West Germany. Both regions experienced a rise in wage inequality between 1995 and 2009 with wage dispersion in East Germany exceeding West Germany, esp. at the top. We also show that wage inequality is no longer rising in Germany and has even been declining in East Germany after 2009. Compositional changes of the workforce and selection along the employment margin play only a minor role as does the decline of union coverage for the rise in wage inequality. The adoption of minimum wages in selected industries, in contrast, explains all of the turnaround in East German wage inequality after 2009. Demand side changes seem to account for the rise in wage dispersion at the top.