The effects of Germany's new minimum wage on employment and welfare dependency

"In January 2015, Germany introduced a federal, statutory minimum wage of 8.50 € per hour. This study evaluates the effects of this policy on regular and marginal employment and on welfare dependency. Based on county-level administrative data, this study uses the difference-in-differences techn...

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Bibliographic Details
Main Author: Schmitz, Sebastian
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: Berlin 2017
Freie Universität Berlin
Subjects:
Online Access:https://www.labourline.org/KENTIKA-19394153124911123359-The-effects-of-Germany-s-new-m.htm
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author Schmitz, Sebastian
author_facet Schmitz, Sebastian
collection Library items
description "In January 2015, Germany introduced a federal, statutory minimum wage of 8.50 € per hour. This study evaluates the effects of this policy on regular and marginal employment and on welfare dependency. Based on county-level administrative data, this study uses the difference-in-differences technique, exploiting regional variation in the bite of the minimum wage, i.e. the county-specific share of employees paid less than 8.50 € before the introduction of the minimum wage. The minimum wage had a considerable negative effect on marginal employment. There is also some indication that regular employment was slightly reduced. Concerning welfare dependency, the minimum wage reduced the number of working welfare recipients, with some indication that about one half of them left welfare receipt due to the minimum wage."
format TEXT
geographic Germany
id 19394153124911123359_0ae0ef3409ae4d019116fee117e515b5
institution ETUI-European Trade Union Institute
is_hierarchy_id 19394153124911123359_0ae0ef3409ae4d019116fee117e515b5
is_hierarchy_title The effects of Germany's new minimum wage on employment and welfare dependency
language English
physical 60 p.
Digital
publishDate 2017
publisher Berlin
Freie Universität Berlin
spellingShingle Schmitz, Sebastian
minimum wage
precarious employment
welfare state
The effects of Germany's new minimum wage on employment and welfare dependency
thumbnail https://www.labourline.org/Image_prev.jpg?Archive=129088094726
title The effects of Germany's new minimum wage on employment and welfare dependency
topic minimum wage
precarious employment
welfare state
url https://www.labourline.org/KENTIKA-19394153124911123359-The-effects-of-Germany-s-new-m.htm