The short-term distributional effects of the German minimum wage reform

"This study quantifies the short-term distributional effects of the new statutory minimum wage in Germany. Using detailed survey data (German Socio-Economic Panel), we assess changes in the distributions of hourly wages, contractual and actual working hours, and monthly earnings. Our descriptiv...

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Main Authors: Caliendo, Marco, Fedorets, Alexandra, Preuss, Malte, Schröder, Carsten, Wittbrodt, Linda
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: Bonn 2017
IZA
Subjects:
Online Access:https://www.labourline.org/KENTIKA-19395633124911138159-The-short-term-distributional-.htm
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author Caliendo, Marco
Fedorets, Alexandra
Preuss, Malte
Schröder, Carsten
Wittbrodt, Linda
author_facet Caliendo, Marco
Fedorets, Alexandra
Preuss, Malte
Schröder, Carsten
Wittbrodt, Linda
collection Library items
description "This study quantifies the short-term distributional effects of the new statutory minimum wage in Germany. Using detailed survey data (German Socio-Economic Panel), we assess changes in the distributions of hourly wages, contractual and actual working hours, and monthly earnings. Our descriptive results indicate growth at the bottom of the hourly wage distribution in the post-reform year, but also considerable noncompliance among eligible employees. In a second step, we employ a difference-in-differences analysis and exploit regional variation in the "bite" of the intervention, measured by the share of employees in a geographical region with wages below the minimum wage prior to the reform. We document the reform's positive effect at the bottom of the wage distribution. However, we find a negative effect of the reform on contractual hours worked, which explains why there is no effect on monthly earnings. Given that actual hours worked decrease less than contractual hours, our evidence suggests an increase in unpaid overtime."
format TEXT
geographic Germany
id 19395633124911138159_0c196ebec8d44d7f90f0e496584e5754
institution ETUI-European Trade Union Institute
is_hierarchy_id 19395633124911138159_0c196ebec8d44d7f90f0e496584e5754
is_hierarchy_title The short-term distributional effects of the German minimum wage reform
language English
physical 45 p.
Digital
publishDate 2017
publisher Bonn
IZA
spellingShingle Caliendo, Marco
Fedorets, Alexandra
Preuss, Malte
Schröder, Carsten
Wittbrodt, Linda
minimum wage
wage structure
working time
The short-term distributional effects of the German minimum wage reform
thumbnail https://www.labourline.org/Image_prev.jpg?Archive=131198095937
title The short-term distributional effects of the German minimum wage reform
topic minimum wage
wage structure
working time
url https://www.labourline.org/KENTIKA-19395633124911138159-The-short-term-distributional-.htm