Minimum wages as a barrier to entry: evidence from Germany
"This study analyses employers' support for the introduction of industry-specific minimum wages as a cost-raising strategy in order to deter market entry. Using a unique data set consisting of 800 firms in the German service sector, we find some evidence that high-productivity employers su...
| Main Authors: | , , |
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| Institution: | ETUI-European Trade Union Institute |
| Format: | TEXT |
| Language: | English |
| Published: |
Bonn
2012
IZA |
| Subjects: | |
| Online Access: | https://www.labourline.org/KENTIKA-19134831124919520139-Minimum-wages-as-a-barrier-to-.htm |
| _version_ | 1771659899012382722 |
|---|---|
| author | Bachmann, Ronald Bauer, Thomas K. Kroeger, Hanna |
| author_facet | Bachmann, Ronald Bauer, Thomas K. Kroeger, Hanna |
| collection | Library items |
| description | "This study analyses employers' support for the introduction of industry-specific minimum wages as a cost-raising strategy in order to deter market entry. Using a unique data set consisting of 800 firms in the German service sector, we find some evidence that high-productivity employers support minimum wages. We further show that minimum wage support is higher in industries and regions with low barriers to entry. This is particularly the case in East Germany, where the perceived threat of low-wage competition from Central and Eastern European Countries is relatively high. In addition, firms paying collectively agreed wages are more strongly in favour of minimum wages if union coverage is low and the mark-up of union wage rates is high." |
| format | TEXT |
| geographic | Germany |
| id | 19134831124919520139_1818280e502d4fccba1b461e318ac8f9 |
| institution | ETUI-European Trade Union Institute |
| is_hierarchy_id | 19134831124919520139_1818280e502d4fccba1b461e318ac8f9 |
| is_hierarchy_title | Minimum wages as a barrier to entry: evidence from Germany |
| language | English |
| physical | 27 p. Digital |
| publishDate | 2012 |
| publisher | Bonn IZA |
| spellingShingle | Bachmann, Ronald Bauer, Thomas K. Kroeger, Hanna collective bargaining minimum wage service sector statistics Minimum wages as a barrier to entry: evidence from Germany |
| thumbnail | https://www.labourline.org/Image_prev.jpg?Archive=112057993023 |
| title | Minimum wages as a barrier to entry: evidence from Germany |
| topic | collective bargaining minimum wage service sector statistics |
| url | https://www.labourline.org/KENTIKA-19134831124919520139-Minimum-wages-as-a-barrier-to-.htm |