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Schulten, Thorsten (2016): WSI-Mindestlohnbericht 2016. Anhaltende Entwicklungsdynamik in Europa. In: WSI-Mitteilungen, Jg. 69, H. 2, S. 129-135. DOI:10.5771/0342-300X-2016-2-129

Abstract

"Der WSI-Mindestlohnbericht 2016 gibt einen aktuellen Überblick über die Entwicklung der Mindestlöhne in 37 Staaten in- und außerhalb Europas. Unter Auswertung der WSI-Mindestlohndatenbank werden neueste Daten zur Höhe und Entwicklung gesetzlicher Mindestlöhne präsentiert. Im Jahr 2015 setzte sich in vielen Ländern eine dynamischere Lohnentwicklung als in der Vergangenheit fort, die allerdings bereits in den Jahren 2015 und 2014 begonnen hatte. Aufgrund der niedrigen Inflationsraten konnten die Mindestlohnbezieher in vielen Ländern erhebliche Reallohnzuwächse verzeichnen. Um jedoch auch einen wirksamen Beitrag zur Bekämpfung von Deflationsgefahren zu leisten, müssten die Mindestlöhne auch in diesem Jahr deutlich ansteigen." (Autorenreferat, IAB-Doku)

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Sosnaud, Benjamin (2016): Living wage ordinances and wages, poverty, and unemployment in US cities. In: Social Service Review, Jg. 90, H. 1, S. 3-34. DOI:10.1086/686581

Abstract

"This article examines city-level trends in wages, poverty, and unemployment following the passage of municipal living wage ordinances. Drawing on 15 years of longitudinal data from 1995 to 2009, I first present an analysis of cities before and after the passage of living wage laws and then compare living wage cities to a matched sample of control cities that have not adopted living wage legislation. I find that the adoption of living wage ordinances is not associated with significant changes in wages, poverty, and unemployment at the city level. This can likely be traced to the relatively small proportion of urban workers covered by most existing living wage laws." (Author's abstract, IAB-Doku) ((en))

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Stops, Michael (2016): Essays on matching processes and effects of institutional changes on regional and occupational labour markets. (IAB-Bibliothek 359), Bielefeld: Bertelsmann, 196 S. DOI:10.3278/300907w

Abstract

"Die Frage, wie der Arbeitsmarkt funktioniert und welchen Einfluss die Politik ausüben kann, ist ein Dauerbrenner in der gesellschaftlichen und politischen Debatte. Das hierzu nötige Wissen speist sich aus der Arbeitsmarktforschung, die häufig Impulse aus dem Alltagsgeschäft der Arbeitsmarktpolitik bekommt. Umgekehrt laden Fortschritte in der Methodenentwicklung und der Datenerschließung die Arbeitsmarktpolitik dazu ein, neue Fragen aufzuwerfen, die bisher nicht beantwortet werden konnten.
Michael Stops greift solche Entwicklungen auf und fokussiert drei Themenbereiche:
Berufliche Mobilität und Effizienz des Arbeitsmarktausgleichs;
Die Entwicklung der Effizienz des Arbeitsmarktausgleichs vor, während und nach den Jahren der deutschen Arbeitsmarktreformen 2003 - 2005 auf beruflichen Teilarbeitsmärkten;
Die Wirkung des flächendeckenden Mindestlohns in Großbritannien auf die Beschäftigung 1999 - 2012." (Autorenreferat, IAB-Doku)

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Strobl, Eric & Frank Walsh (2016): Monopsony, minimum wages and migration. In: Labour economics, Jg. 42, H. October, S. 221-237. DOI:10.1016/j.labeco.2016.09.004

Abstract

"We show in a theoretical monopsony model that in response to a small increase in migration compliance with the minimum wage will increase if the share of minimum wage workers employed in firms that are constrained by the labour supply curve is large enough. If minimum wage firms are constrained by the labour demand curve an increase in migration will leave employment unchanged and employment in non-compliant firms will rise. Using data from Thailand we provide evidence that increases in inward net migration are associated with a proportionately greater increase in workers employed at the minimum wage relative to non-compliance." (Author's abstract, © 2016 Elsevier) ((en))

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Wehby, George, Dhaval Dave & Robert Kaestner (2016): Effects of the minimum wage on infant health. (IZA discussion paper 10039), Bonn, 48 S.

Abstract

"The minimum wage has increased in multiple states over the past three decades. Research has focused on effects on labor supply, but very little is known about how the minimum wage affects health, including children's health. We address this knowledge gap and provide an investigation focused on examining the impact of the effective state minimum wage rate on infant health. Using data on the entire universe of births in the US over 25 years, we find that an increase in the minimum wage is associated with an increase in birth weight driven by increased gestational length and fetal growth rate. The effect size is meaningful and plausible. We also find evidence of an increase in prenatal care use and a decline in smoking during pregnancy, which are some channels through which minimum wage can affect infant health. Labor market policies that enhance wages can thus affect wellbeing in broader ways, and such health effects should enter into any cost-benefit calculus of such policies." (Author's abstract, IAB-Doku) ((en))

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Wehby, George, Dhaval Dave & Robert Kaestner (2016): Effects of the minimum wage on infant health. (NBER working paper 22373), Cambrige, Mass., 48 S. DOI:10.3386/w22373

Abstract

"The minimum wage has increased in multiple states over the past three decades. Research has focused on effects on labor supply, but very little is known about how the minimum wage affects health, including children's health. We address this knowledge gap and provide an investigation focused on examining the impact of the effective state minimum wage rate on infant health. Using data on the entire universe of births in the US over 25 years, we find that an increase in the minimum wage is associated with an increase in birth weight driven by increased gestational length and fetal growth rate. The effect size is meaningful and plausible. We also find evidence of an increase in prenatal care use and a decline in smoking during pregnancy, which are some channels through which minimum wage can affect infant health. Labor market policies that enhance wages can thus affect wellbeing in broader ways, and such health effects should enter into any cost-benefit calculus of such policies." (Author's abstract, IAB-Doku) ((en))

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International Labour Office (2016): Global wage report 2016/17. Wage inequality in the workplace. (Global wage report 05), Genf, 114 S.

Abstract

"The 2016/17 edition examines inequality at the workplace level, providing empirical evidence on the extent to which wage inequality is the result of wage inequality between enterprises as well as within enterprises. The report also includes a review of key policy issues regarding wages." (Author's abstract, IAB-Doku) ((en))

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Belman, Dale, Paul Wolfson & Kritkorn Nawakitphaitoon (2015): Who is affected by the minimum wage? In: Industrial relations, Jg. 54, H. 4, S. 582-621. DOI:10.1111/irel.12107

Abstract

"Prior surveys of empirical research on the minimum wage have been organized around the question 'What does the minimum wage affect?' This survey is organized around the question 'Who is affected by the minimum wage?' We review the consequences of the minimum wage for teens and young workers, men and women, African Americans and Hispanics, the less educated, workers in low wage industries, and low-wage/low-income populations. Although there is almost universal agreement that the minimum wage boosts earnings, evidence for a negative employment effect varies between mixed and nonexistent. An important gap in the literature is the paucity of research on low-wage/low-income groups." (Author's abstract, IAB-Doku) ((en))

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Berthold, Norbert & Mustafa Coban (2015): Interaktionseffekte zwischen Mindestlöhnen und Lohnsubventionen. Eine Analyse zur Beschäftigung in den USA und in Deutschland. In: Zeitschrift für Wirtschaftspolitik, Jg. 64, H. 1, S. 3-31., 2014-12-17.

Abstract

"Der Beitrag geht auf theoretischer und empirischer Ebene der Frage nach, wie Lohnsubventionen und Mindestlöhne in Bezug auf Beschäftigungschancen interagieren und wie diese Interaktionseffekte zwischen einzelnen Arbeitnehmergruppen variieren können. Unter der Annahme eines neoklassischen Arbeitsmarktes und heterogener Arbeit, verdrängen subventionierte Berufserfahrene berufsunerfahrene Arbeitnehmer. Der Effekt auf nicht subventionierte Berufserfahrene bleibt theoretisch offen. Die empirische Überprüfung für die USA ergibt, dass mit steigendem Mindestlohn die Beschäftigung an Berufsunerfahrenen sinkt, an nicht subventionierten Berufserfahrenen konstant bleibt und an subventionierten Berufserfahrenen buckelförmig verläuft. Für Deutschland hingegen zeigen mehrere Simulationsergebnisse, dass die Einführung des Mindestlohns in Höhe von 8,50 Euro in Verbindung mit bestehenden Lohnsubventionen keine Substitutionseffekte auslöst, sondern die Beschäftigung aller Arbeitnehmer im Niedriglohnsektor unabhängig von deren Förderberechtigung senkt." (Autorenreferat, IAB-Doku)

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Bhorat, Haroon, Ravi Kanbur & Benjamin Stanwix (2015): Partial minimum wage compliance. In: IZA journal of labor and development, Jg. 4, S. 1-20. DOI:10.1186/s40175-015-0039-1

Abstract

"In many developing countries, a significant portion of the wage distribution is found below the legal minimum wage. In order to fully understand the nature of this non-compliance, we need to compare the counterfactual wage distribution without the minimum wage law to the current wage distribution. Such a comparison could reveal partial compliance, where employers raise wages some of the way to the minimum wage, to balance out the benefits of non-compliance with the costs and penalties to the extent that they depend on the gap between the legal minimum wage and the wage actually paid. This paper presents a simple model of such partial compliance and uses its predictions to structure an empirical investigation of the impact of introducing a minimum wage law for agricultural workers in South Africa. We find that partial compliance is indeed taking place and further, the lowest wages are being raised disproportionately, consistent with the predictions of the model." (Author's abstract, IAB-Doku) ((en))

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Brewer, Mike & Paola De Agostini (2015): The National Minimum Wage and its interaction with the tax and benefits system. A focus on Universal Credit. (EUROMOD working paper 2015,02), Cambridge, 55 S.

Abstract

"This paper uses the UK module of EUROMOD to examine the likely impact of Universal Credit (UC) on the incomes and work incentives of families containing NMW workers ('NMW families'). It in part updates previous work done for the Low Pay Commission (Brewer, May and Phillips, 2009). The analysis was completed after the 2012 Autumn Statement, but before the Spring 2013 Budget, and so does not reflect any changes to personal taxes and benefits for 2014-15 announced then." (Author's abstract, IAB-Doku) ((en))

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Carpio, Ximena Del, Ha Nguyen, Laura Pabon & Liang Choon Wang (2015): Do minimum wages affect employment? Evidence from the manufacturing sector in Indonesia. In: IZA journal of labor and development, Jg. 4, S. 1-30. DOI:10.1186/s40175-015-0040-8

Abstract

"This paper investigates the impact of minimum wages on employment and wages in Indonesian manufacturing firms between 1993 and 2006. It shows that within firms, the employment effects of minimum wage hikes is negative. It finds significant, negative employment effects of minimum wages among small firms and for non-production, less-educated and female workers. The paper also finds that minimum wages are more correlated with small firms' average wages than large firms', suggesting that minimum wages are more binding in small firms." (Author's abstract, IAB-Doku) ((en))

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Clemens, Jeffrey (2015): The minimum wage and the Great Recession. Evidence from the current population survey. (NBER working paper 21830), Cambrige, Mass., 67 S. DOI:10.3386/w21830

Abstract

"I analyze recent federal minimum wage increases using the Current Population Survey. The relevant minimum wage increases were differentially binding across states, generating natural comparison groups. I first estimate a standard difference-in-differences model on samples restricted to relatively low-skilled individuals, as described by their ages and education levels. I also employ a triple-difference framework that utilizes continuous variation in the minimum wage's bite across skill groups. In both frameworks, estimates are robust to adopting a range of alternative strategies, including matching on the size of states' housing declines, to account for variation in the Great Recession's severity across states. My baseline estimate is that this period's full set of minimum wage increases reduced employment among individuals ages 16 to 30 with less than a high school education by 5.6 percentage points. This estimate accounts for 43 percent of the sustained, 13 percentage point decline in this skill group's employment rate and a 0.49 percentage point decline in employment across the full population ages 16 to 64." (Author's abstract, IAB-Doku) ((en))

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Cooper, David, Lawrence Mishel & John Schmitt (2015): We can afford a $ 12.00 federal minimum wage in 2020. (EPI briefing paper 398), Washington, DC, 20 S.

Abstract

"This paper shows that raising the minimum wage to $12.00 an hour by 2020 is an achievable and economically sustainable goal, and stands within U.S. historical experience. The paper finds that increases in worker productivity and education levels, along with wage increases in regions that paid lower-than-national wages in the past, make returning to the 1968 norm in 2020 an achievable target. An increase to $12 per hour would modestly raise the minimum wage's purchasing power and roughly restore the relationship between the minimum wage and workers in the middle relative to 1968 levels, when the minimum wage was at its historical peak and the national unemployment rate was less than 4 percent." (Author's abstract, IAB-Doku) ((en))

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Dickens, Richard, Rebecca Riley & David Wilkinson (2015): A re-examination of the impact of the UK national minimum wage on employment. In: Economica, Jg. 82, H. 328, S. 841-864. DOI:10.1111/ecca.12158

Abstract

"Early work on the national minimum wage (NMW) suggested that policymakers in the UK had succeeded in raising the pay of low-paid workers without impairing their employment prospects. This paper shows that when we focus on the most vulnerable workers, part-time females, the NMW appears to be associated with reductions in employment retention. These negative impacts were evident when the NMW was introduced and also when it was increased faster than average wages in the mid-2000s. We also show that these falls in employment among part-time females are exacerbated by the recession." (Author's abstract, IAB-Doku) ((en))

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Dolton, Peter, Chiara Rosazza Bondibene & Michael Stops (2015): Identifying the employment effect of invoking and changing the minimum wage. A spatial analysis of the UK. In: Labour economics, Jg. 37, H. December, S. 54-76., 2015-09-28. DOI:10.1016/j.labeco.2015.09.002

Abstract

"This paper assesses the impact of the National Minimum Wage (NMW) on employment in the UK over the 1999-2010 period explicitly modelling the effect of the 2008-10 recession. Identification of invoking a NMW is possible by reference to a pre-period (prior to 1999) without a NMW. Separate identification of the effect of incremental changes (and year interaction effects) in the NMW is facilitated by variation in the bite of the NMW across local labour markets. We address the issues of: possible endogeneity and dynamic structure of employment rate changes; regional demand side shocks induced by the recession; and take account of the spatial dependence of local labour markets. Using System GMM we conclude that there is no discernable effect of the NMW introduction or its uprating on employment but show how more naïve estimation may have revealed the various widely different positive and negative effects found in the literature." (Author's abstract, IAB-Doku) ((en))

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Dube, Arindrajit & Ben Zipperer (2015): Pooling multiple case studies using synthetic controls. An application to minimum wage policies. (IZA discussion paper 8944), Bonn, 58 S.

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Galán, Sofía & Sergio Puente (2015): Minimum wages: Do they really hurt young people? In: The B.E. Journal of Economic Analysis and Policy, Jg. 15, H. 1, S. 299-328. DOI:10.1515/bejeap-2013-0171

Abstract

"This paper uses a significant increase in the minimum wage in Spain between 2004 and 2010 as a case study to analyse the effects on the individual probability of losing employment, using a large panel of social security records. We show that this individual approach is important, as the possible effects for different types of individuals may differ from other estimates in the literature, based on aggregate or firm-level data, hence complementing them. Our main finding is that older people experienced the largest increase in the probability of losing their job, when compared with other age groups, including young people. The intuition is simple: among the affected (low-productivity) workers, young people are expected to increase their productivity more than older ones, who are in the flat part of their life-cycle productivity curve. Consequently, an employer facing a uniform increase in the minimum wage may find it profitable to retain young employees and to fire older ones." (Author's abstract, IAB-Doku) ((en))

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Garnero, Andrea, Stephan Kampelmann & François Rycx (2015): Minimum wage systems and earnings inequalities. Does institutional diversity matter? In: European journal of industrial relations, Jg. 21, H. 2, S. 115-130. DOI:10.1177/0959680114527034

Abstract

"This article explores how the diversity of minimum wage systems affects earnings inequalities within European countries. It relies on the combination of harmonized microdata from household surveys, data on national statutory minimum wages and coverage rates and information on minimum rates compiled from more than 1100 sectoral-level agreements across Europe. The analysis covers 18 countries over the period 2007 - 2009. Empirical results confirm the intuition of many practitioners that the combination of sectoral minima and high collective bargaining coverage can be regarded as a functional equivalent of a binding statutory minimum wage, at least for earnings inequalities. Regression results suggest indeed that both a national statutory minimum and, in countries with sectoral minima, higher collective bargaining coverage is significantly associated with lower levels of (overall and inter-industry) wage inequalities and a smaller fraction of workers paid below prevailing minima. Several robustness checks confirm these findings." (Author's abstract, IAB-Doku) ((en))

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Garnero, Andrea, Stephan Kampelmann & François Rycx (2015): Sharp teeth or empty mouths? European institutional diversity and the sector-level minimum wage bite. In: BJIR, Jg. 53, H. 4, S. 760-788. DOI:10.1111/bjir.12104

Abstract

"The article explores the link between different institutional features of minimum wage systems and the minimum wage bite. We notably address the striking absence of studies on sectoral-level minima and exploit unique data covering 17 European countries and information from more than 1,100 collective bargaining agreements. Results provide evidence for a neglected trade-off: systems with bargained sectoral-level minima are associated with higher Kaitz indices than systems with statutory floors, but also with more individuals actually paid below prevailing minima. Higher collective bargaining coverage can, to some extent, reduce this trade-off between sharp teeth (high wage floors) and empty mouths (non-compliance/non-coverage)." (Author's abstract, IAB-Doku) ((en))

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Giotis, Georgios & Michael Chletsos (2015): Is there publication selection bias in minimum wage research during the five-year period from 2010 to 2014? (Economics. Discussion papers 2015-58), Kiel, 26 S. DOI:10.7910/DVN/X2AZEJ

Abstract

"The impact of minimum wages on employment has always been a field of conflicts among economists and this divergence of views has usually taken the form of competing studies. Doucouliagos and Stanley (Publication selection bias in minimum-wage research? A meta-regression analysis, 2009) conducted a meta-analysis of 64 US studies which showed that literature is contaminated by publication selection bias, and once it is corrected, little or no evidence of a negative association between minimum wages and employment remains. This result contradicts the neoclassical theory and gives a Keynesian perspective which suggests that changes in minimum wages are not related with positive or negative employment effects. In their analysis, the authors use a meta-sample of 45 empirical studies published in academic journals in the 2010 - 2014 five-year period, to investigate whether minimum wage research has been affected by Doucouliagos and Stanley's study. Their results indicate that there is evidence of publication selection in the elasticities' meta-sample, but once it is corrected only a small negative effect remains and, in the coefficients' meta-sample, publication selection bias is not found and the genuine effect is again negative but small. In addition, the authors find that study characteristics related to the data, the model specifications, the minimum wage and employment measure used, and the industry concerned, diversify the sign of the minimum wage effect." (Author's abstract, IAB-Doku) ((en))

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Giulietti, Corrado (2015): Do minimum wages induce immigration? The minimum wage affects international migration flows and the internal relocation of immigrants. (IZA world of labor 151), Bonn, 10 S. DOI:10.15185/izawol.151

Abstract

"An increase in the minimum wage in immigrant destination countries raises the earnings that low-skilled migrants could expect to attain if they were to migrate. While some studies for the US indicate that a higher minimum wage induces immigration, contrasting evidence shows that immigrants are less likely to move into areas with higher or more frequent increases in the minimum wage. These different findings seem to reflect different relocation decisions by immigrants who have lived in the US for several years, who are more likely to move in response to higher minimum wages, and by new immigrants, who are less likely to move." (Author's abstract, IAB-Doku) ((en))

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Ham, Andrés (2015): Minimum wage violations in Honduras. Beijing minimum wage conference submission. In: IZA journal of labor and development, Jg. 4, S. 1-19. DOI:10.1186/s40175-015-0045-3

Abstract

"This article studies minimum wage non-compliance in Honduras, a dual labor market with high wage floors that are weakly enforced. However, rather than just counting how many workers earn sub-minimum wages, it also estimates violation indices that measure compliance at the intensive margin. I first explore cross-sectional heterogeneity in violations using household survey data. Then, I quantify compliance adjustments to minimum wage hikes by comparing indices before and after a large unexpected increase. Results show substantial differences in non-compliance across industries, location, and coverage status. Violations worsen with rising minima, but less in in more compliant sectors." (Author's abstract, IAB-Doku) ((en))

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Hirsch, Barry T., Bruce E. Kaufman & Tetyana Zelenska (2015): Minimum wage channels of adjustment. In: Industrial relations, Jg. 54, H. 2, S. 199-239. DOI:10.1111/irel.12091

Abstract

"We analyze the effects of minimum wage increases in 2007 - 2009 using a sample of restaurants from Georgia and Alabama. Store-level payroll records provide precise measures of compliance costs. We examine multiple adjustment channels. Exploiting variation in compliance costs across restaurants, we find employment and hours responses to be variable and in most cases statistically insignificant. Channels of adjustment to wage increases and to changes in nonlabor costs include prices, profits, wage compression, turnover, and performance standards." (Author's abstract, IAB-Doku) ((en))

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Hohberg, Maike & Jann Lay (2015): The impact of minimum wages on informal and formal labor market outcomes: evidence from Indonesia. In: IZA journal of labor and development, Jg. 4, S. 1-25. DOI:10.1186/s40175-015-0036-4

Abstract

"This paper studies the effects of minimum wages on informal and formal sector wages and employment in Indonesia between 1997 and 2007. Applying fixed-effects methods, the estimates suggest that minimum wages have a significant positive effect on formal sector wages, while there are no spillover effects on informal workers. Regarding employment, we find no statistically significant negative effects of minimum wages on the probability of being formally employed. These findings suggest that employers use adjustment channels other than employment or that effects such as a demand stimulus on a local level outweigh the possible negative employment effects." (Author's abstract, IAB-Doku) ((en))

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Hustert, Frank (2015): Der gesetzliche Mindestlohn. Theoretische Darstellung am Beispiel des Polypols und empirische Erkenntnisse. In: Wirtschaftswissenschaftliches Studium, Jg. 44, H. 10, S. 584-589.

Abstract

"Unter einem Mindestlohn wird eine überwiegend gesetzlich oder kollektivvertraglich definierte Untergrenze des Lohns für unselbständige Arbeit verstanden. In Deutschland ist ein gesetzlicher Mindestlohn zu Beginn des Jahres 2015 flächendeckend eingeführt worden. Bis zu dem Zeitpunkt gab es lediglich einige tarifliche Branchenmindestlöhne (vgl. Schuster, 2013, S. 3). Ziel von Mindestlöhnen ist u. a. die Situation der Working Poor, also der Menschen, die trotz Erwerbstätigkeit in Armut leben, zu verbessern sowie Arbeitnehmer mit geringer Verhandlungsmacht vor Ausbeutung zu schützen (vgl. Henneberger/Haug, 2010, S. 4 f.). In diesem Artikel sollen der Mindestlohn und seine Auswirkungen auf den Arbeitsmarkt theoretisch am Beispiel des Polypolmarktes erläutert werden. Im Anschluss daran werden die Mindestlohnregelung in Deutschland vorgestellt, mit den Regelungen anderer Länder verglichen und abschließend empirische Erkenntnisse aus Ländern dargestellt, die einen Mindestlohn bereits seit längerer Zeit eingeführt haben." (Autorenreferat, IAB-Doku)

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Kabátek, Jan (2015): Happy birthday, you're fired! The effects of age-dependent minimum wage on youth employment flows in the Netherlands. (IZA discussion paper 9528), Bonn, 28 S.

Abstract

"This paper investigates the effects of the age-dependent minimum wage on youth employment flows in the Netherlands. The Dutch minimum wage for workers aged 15-23 is defined as a step-wise increasing function of a worker's calendar age. At the age of 23, workers become eligible for the 'adult' minimum wage which does not increase further. This creates an incentive for firms to discriminate against employees on the basis of their age, substituting more expensive older workers with younger ones. In order to grasp the size of these effects, I analyze monthly flows in and out of employment using administrative records for the entire youth population of the Netherlands. I account for the time remaining until workers' next birthdays, exploiting the fact that firms are facing a sharp discontinuity in labor costs in the month when a worker turns one year older. The results show a significant increase in job separation around the time of this discontinuity: the probability of job separation increases by 1.1% in the three calendar months which are closest to a worker's next birthday. This effect exhibits substantial heterogeneity with respect to a worker's age, showing that young and inexperienced workers are more likely to be affected by the discontinuities. The size of the effect also varies by the sector of employment, being particularly large for supermarket employees. Job accession peaks just after workers' birthdays, representing both entry of the workers with higher reservation wages and reemployment of the workers whose jobs are dissolved around the time of the discontinuity." (Author's abstract, IAB-Doku) ((en))

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Krueger, Alan B. (2015): The history of economic thought on the minimum wage. In: Industrial relations, Jg. 54, H. 4, S. 533-537. DOI:10.1111/irel.12104

Abstract

Der Artikel gibt einen Überblick über 75 Jahre ökonomischer Theorieproduktion zur Wirkungsweise von Mindestlöhnen. Der Schwerpunkt liegt dabei theoretisch wie empirisch auf den USA, beginnend mit den Debatten um den Fair Labor Standard Act aus dem Jahr 1938. Der Autor geht dann chronologisch auf ausgewählte Mindestlohnregelungen (auf der Ebene des Bundesstaates oder landesweit) und auf Wirkungsuntersuchungen mit unterschiedlichen wirtschaftstheoretischen Ansätze ein. (IAB)

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Leckcivilize, Attakrit (2015): Does the minimum wage reduce wage inequality? Evidence from Thailand. In: IZA journal of labor and development, Jg. 4, S. 1-23. DOI:10.1186/s40175-015-0041-7

Abstract

"Most of the minimum wage literature in developing countries provides supporting evidence of its effectiveness in reducing wage inequality. Using minimum wage data from Thailand (1985 - 2010), I find rather mixed outcomes. The minimum wage seems to help compress the lower part of wage distribution for employees in large businesses. However, the effect does not extend to small and medium firms in the covered sector. In contrast with its role as a benchmark for wage adjustment in Latin America, the minimum wage in Thailand does not reduce overall wage inequality owing to the high non-compliance rate and weak law enforcement, particularly in the informal sector." (Author's abstract, IAB-Doku) ((en))

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Li, Shi & Xinxin Ma (2015): Impact of minimum wage on gender wage gaps in urban China. In: IZA journal of labor and development, Jg. 4, S. 1-22. DOI:10.1186/s40175-015-0044-4

Abstract

"This paper provides evidence on whether the minimum wage (MW) has affected gender wage gaps in urban China. Several major conclusions emerge. First, from 1995 to 2007, the proportion of workers whose wages were below the regional MW level was greater for female workers than for male workers. Second, the results obtained by using the difference-in-differences estimation method show that from a long-term perspective, the MW will help to reduce gender wage gaps and that the effect is more obvious for the low-wage group. However, in the short term, the amelioration effect is not obvious." (Author's abstract, IAB-Doku) ((en))

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Lopresti, John W. & Kevin J. Mumford (2015): Who benefits from a minimum wage increase? (Upjohn Institute working paper 224), Kalamazoo, Mich., 33 S.

Abstract

"This paper addresses the question of how a minimum wage increase affects the wages of low-wage workers. Most studies assume that there is a simple mechanical increase in the wage for workers earning a wage between the old and the new minimum wage, with some studies allowing for spillovers to workers with wages just above this range. Rather than assume that the wages of these workers would have remained constant, this paper estimates how a minimum wage increase impacts a low-wage worker's wage relative to the wage the worker would have if there had been no minimum wage increase. The method allows for the effect to depend not only on the initial wage of the worker, but also nonlinearly on the size of the minimum wage increase. Using Current Population Survey data from 2005 to 2008, a period with a large number of U.S. state-level minimum wage increases, this paper finds that low-wage workers who experience a small increase in the minimum wage tend to have lower wage growth than if there had been no minimum wage increase. A large increase to the minimum wage increases the wages of not only those workers who previously earned less than the new minimum wage, but also spill over to workers with moderately higher wages. Finally, this paper finds little evidence of heterogeneity in the effect by age, gender, income, and race." (Author's abstract, IAB-Doku) ((en))

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MaCurdy, Thomas (2015): How effective is the minimum wage at supporting the poor? In: Journal of political economy, Jg. 123, H. 2, S. 497-545. DOI:10.1086/679626

Abstract

"This study investigates the antipoverty efficacy of minimum wage policies. Proponents of these policies contend that employment impacts are negligible and suggest that consumers pay for higher labor costs through imperceptible increases in goods prices. Adopting this empirical scenario, the analysis demonstrates that an increase in the national minimum wage produces a value-added tax effect on consumer prices that is more regressive than a typical state sales tax and allocates benefits as higher earnings nearly evenly across the income distribution. These income-transfer outcomes sharply contradict portraying an increase in the minimum wage as an antipoverty initiative." (Author's abstract, IAB-Doku) ((en))

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Monras, Joan (2015): Minimum wages and spatial equilibrium. Theory and evidence. (IZA discussion paper 9460), Bonn, 30 S.

Abstract

"Often, minimum wage laws are decided at the state or regional level, and even when not, federal level increases are only binding in certain states. This has been used in previous literature to evaluate the effects of minimum wages on earnings and employment levels. This paper introduces a spatial equilibrium model to think about the seemingly conflicting findings of this previous literature. The model shows that the introduction of minimum wages can lead to an increase or a decrease in population depending on the local labor demand elasticity and on how unemployment benefits are financed. The paper provides empirical evidence consistent with the model. On average, increases in minimum wages lead to increases in average wages and decreases in employment. The low-skilled local labor demand elasticity is estimated to be above, which in the model is a necessary condition for the migration responses found in the data. Low-skilled workers, who are presumably the target of the policy, tend to leave or avoid moving to the regions that increase minimum wages." (Author's abstract, IAB-Doku) ((en))

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Muravyev, Alexander & Aleksey Oshchepkov (2015): The effect of doubling the minimum wage on employment. Evidence from Russia. (IZA discussion paper 9589), Bonn, 24 S.

Abstract

"We take advantage of a natural experiment in the minimum wage setting in Russia to study the employment consequences of large hikes in the minimum wage. In September 2007, the Russian government raised the federal minimum wage from 1,100 to 2,300 Rubles and simultaneously gave the regions the power to set their own minima above the federal threshold. In studying the effect of this reform, we follow the approach proposed by David Card and compare changes in employment rates and other labor market outcomes before and after the hike across regions with different shares of affected workers. We find some evidence of adverse effects of the 2007 hike in the minimum wage on employment. They are mostly visible in lower employ" (Author's abstract, IAB-Doku) ((en))

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O¿Neill, Donal (2015): Divided opinion on the Fair Minimum Wage Act of 2013. Random or systematic differences. In: Economics letters, Jg. 136, H. November, S. 175-178. DOI:10.1016/j.econlet.2015.09.020

Abstract

"This paper analyses economists' support for the Fair Minimum Wage Act of 2013. I find systematic differences between those supporting the legislation and those opposing it, with support higher among females, young labour economists and those located further from Chicago." (Author's abstract, © 2015 Elsevier) ((en))

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Reich, Michael (2015): The ups and downs of minimum wage policy. The fair labor standards act in historical perspective. In: Industrial relations, Jg. 54, H. 4, S. 538-546. DOI:10.1111/irel.12105

Abstract

"I provide here a historical overview of the impact of minimum wage legislation, enacted over 75 years ago in the Fair Labor Standards Act (FLSA) of 1938 and as amended subsequently on numerous occasions." (Text excerpt, IAB-Doku) ((en))

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Reich, Michael & Rachel West (2015): The effects of minimum wages on food stamp enrollment and expenditures. In: Industrial relations, Jg. 54, H. 4, S. 668-694. DOI:10.1111/irel.12110

Abstract

"We provide the first causal analysis of how minimum wages affects enrollments and expenditures in the Supplemental Nutrition Assistance Program (SNAP). Exploiting state- and federal-level variation in minimum-wage policy between 1990 and 2012, and incorporating local controls in our specifications, we find that a 10 percent minimum wage increase reduces SNAP enrollment between 2.4 and 3.2 percent, and reduces program expenditures an estimated 1.9 percent. If the federal minimum wage were increased from $7.25 to $10.10, enrollment would fall between 7.5 and 8.7 percent (3.1 to 3.6 million persons) relative to 2012 levels, and annual expenditures would decrease 6 percent ($4.6 billion)." (Author's abstract, IAB-Doku) ((en))

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Riley, Rebecca & Chiara Rosazza Bondibene (2015): Raising the standard. Minimum wages and firm productivity. (NIESR discussion paper 449), London, 35 S.

Abstract

"This paper exploits the introduction of the National Minimum Wage (NMW) in Britain and subsequent increases in the NMW to identify the effects of minimum wages on productivity. We find that the NMW increased average labour costs for companies that tend to employ low paid workers, both upon the introduction of the NMW and more recently following the Great Recession when many workers experienced pay freezes or wage cuts, but the NMW continued to rise. We find evidence to suggest that companies responded to these increases in labour costs by raising labour productivity. These labour productivity changes did not come about via a reduction in firms' workforce or via capital-labour substitution. Rather they were associated with increases in total factor productivity, consistent with organisational change, training and efficiency wage responses to increased labour costs from minimum wages." (Author's abstract, IAB-Doku) ((en))

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Rumscheidt, Sabine (2015): Minimum wage regimes in the European Union. In: CESifo DICE report, Jg. 13, H. 2, S. 67-69.

Abstract

"Every EU member state has some form of minimum wage system in place. The different systems, however, vary regarding the levels, scope and the institutional setting of minimum wages (MW). The main distinction can be made between national statutory and sectoral regimes. National statutory regimes define a general wage floor, which is compulsory for all employees. Sectoral regimes have no general wage floor. Instead, multiple minimum wage levels are agreed by social partners in sector-based collective agreements, albeit with varying coverage of the workforce." (Text excerpt, IAB-Doku) ((en))

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Rumscheidt, Sabine (2015): Mindestlohnsysteme in der Europäischen Union. In: Ifo-Schnelldienst, Jg. 68, H. 14, S. 56-58.

Abstract

In jedem Mitgliedstaat der Europäischen Union gibt es eine Form von Mindestlohn, die jeweiligen Mindestlohnsysteme unterscheiden sich jedoch beträchtlich in Bezug auf das Niveau, den Umfang und den institutionellen Rahmen der Mindestlöhne. Der Beitrag gibt einen Überblick über die unterschiedlichen Regelungen in den Ländern der EU.

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Sabia, Joseph J. (2015): Minimum wages and gross domestic product. In: Contemporary Economic Policy, Jg. 33, H. 4, S. 587-605. DOI:10.1111/coep.12099

Abstract

"This study is the first to explore the relationship between minimum wage increases and state gross domestic product (GDP). Using data drawn from the Bureau of Economic Analysis (BEA) and the Current Population Survey (CPS) from 1979 to 2012, I find no evidence that minimum wage increases were associated with changes in overall state GDP. However, this null finding masks substantial heterogeneity in the productivity effects of minimum wages across industries and over the business cycle. Difference-in-difference-in-difference estimates suggest that a 10% increase in the minimum wage is associated with a short-run 1% to 2% decline in state GDP generated by lower-skilled industries relative to more highly skilled industries. This differential appears larger during troughs as compared to that during peaks of the state business cycle." (Author's abstract, IAB-Doku) ((en))

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Schmitt, John (2015): Explaining the small employment effects of the minimum wage in the United States. In: Industrial relations, Jg. 54, H. 4, S. 547-581. DOI:10.1111/irel.12106

Abstract

"The employment effect of the minimum wage is one of the most studied topics in all of economics. This paper examines the most recent wave of this research - roughly since 2000 - to determine the best current estimate of the impact of increases in the minimum wage on the employment prospects of low-wage workers in the United States. The weight of that evidence points to little or no employment response to modest increases in the minimum wage. The paper also reviews evidence on a range of possible adjustments to minimum- wage increases that may help to explain why the measured employment effects are consistently small." (Text excerpt, IAB-Doku) ((en))

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Seeliger, Martin (2015): Europäischer Mindestlohn als Arbeitnehmerinteresse? Probleme gewerkschaftlicher Positionsbildung. In: Aus Politik und Zeitgeschichte, Jg. 65, H. 4-5, S. 36-42.

Abstract

"Der Vorschlag einer gemeinsamen Lohnuntergrenze für die EU wirkt plausibel. Die Diskussionen unter den europäischen Gewerkschaften sind allerdings kontrovers. Heterogenität erschwert die Entwicklung einer gemeinsamen Position." (Autorenreferat, IAB-Doku)

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Sun, Wenkai, Xianghong Wang & Xiaoxi Zhang (2015): Minimum wage effects on employment and working time of Chinese workers. Evidence based on CHNS. In: IZA journal of labor and development, Jg. 4, S. 1-22. DOI:10.1186/s40175-015-0046-2

Abstract

"This paper examines the impact of minimum wage policies on employment, income, and working time of Chinese workers. Using data from China Health and Nutrition Survey, we focus on identifying the effects of minimum wage adjustments using a pre-specified model. We control for lagged minimum wage standard, individual characteristics, provincial population and economic factors, and fixed effects of province and year. We find some evidence of minimum wage impacts on wages and employment for limited groups. Increase of minimum wage has positive effect on wage income only for low-income workers and has negative employment effect only for workers in private and individual enterprises. While minimum wage shortens the average working hours for employed workers, it does not have significant effect on the relative working times for different income groups. These findings may imply some beneficial effects of the minimum wage policies for Chinese workers." (Author's abstract, IAB-Doku) ((en))

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Totty, Evan (2015): The effect of minimum wages on employment. A factor model approach. (IRLE working paper 2015-110), Berkeley, CA, 60 S.

Abstract

"This paper resolves issues in the minimum wage-employment debate by using factor model econometric methods to address concerns related to unobserved heterogeneity. Recent work has shown that the negative effects of minimum wages on employment found using traditional methods are sensitive to the inclusion of controls for regional heterogeneity and selection of states that experience minimum wage hikes, leaving the two sides of the debate in disagreement about the appropriate approach. Factor model methods are an ideal solution for this disagreement, as they allow for the presence of multiple unobserved common factors, which can be correlated with the repressors. These methods provide a more flexible way of addressing concerns related to unobserved heterogeneity and are robust to critiques from either side of the debate. The factor model estimators produce minimum wage-employment elasticities that are much smaller than the traditional OLS results and are not statistically different from zero. These results hold for many specifications and two datasets that have been used in the minimum wage-employment literature. A simulation shows that unobserved common factors can explain the different estimates seen across methodologies in the literature." (Author's abstract, IAB-Doku) ((en))

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Ye, Linxiang, T. H. Gindling & Shi Li (2015): Compliance with legal minimum wages and overtime pay regulations in China. In: IZA journal of labor and development, Jg. 4, S. 1-35. DOI:10.1186/s40175-015-0038-2

Abstract

"We use a matched firm-employee data set to examine the extent of compliance with minimum wage and overtime pay regulations in Chinese formal sector firms. We find evidence that there is broad compliance with legal minimum wages in China; fewer than 3.5% of full-time workers earn less than the legal monthly minimum wage. On the other hand, we find evidence that there is substantial non-compliance with overtime pay regulations; almost 29% of the employees who work overtime are not paid any additional wage for overtime hours, and 70% are paid less than the legally-required 1.5 times the regular wage." (Author's abstract, IAB-Doku) ((en))

Abstract

"This report reviews the National Minimum Wage (NMW) including the state of the economy and the labour market and the operation of the NMW. It makes recommendations for the level of each of the different rates of the NMW which the Low Pay Commission (LPC) believes should apply from October 2015.
The government had also asked us to consider whether any changes can be made to the Apprentice Rate to make the structure simpler and improve compliance and whether the structure and level of the Apprentice Rate should continue to be applied to all levels of apprenticeship, including higher levels; Our recommendation on this is given in chapter 4 'Review of the Structure of the Apprentice Rate' of the report." (Author's abstract, IAB-Doku) ((en))

Abstract

"Minimum wages are common but controversial. Three out of four OECD countries use them, and supporting low-wage earners is widely seen as important for promoting inclusive growth. But views differ about whether such support is best provided through minimum wages, or closely related policies, such as government transfers. This policy brief considers three aspects that are central for a balanced assessment of policy choices: The cost of employing minimum-wage workers, their take-home pay, and the number of workers affected." (Author's abstract, IAB-Doku) ((en))

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Addison, John T., McKinley L. Blackburn & Chad D. Cotti (2014): On the robustness of minimum wage effects. Geographically-disparate trends and job growth equations. (IZA discussion paper 8420), Bonn, 22 S.

Abstract

"Just as the standard two-way fixed effects model for estimating the impact of minimum wages on employment has been sharply criticized for its neglect of spatial heterogeneity so, too, have the latest models been attacked for their uncritical use of state- or county-specific linear trends (and other spatial counterfactuals). Further attenuation of the effects of policy is also alleged to obtain in such circumstances where the true effect of minimum wages is upon employment growth rather than levels. This paper investigates whether such considerations call into question our earlier findings of statistically insignificant employment effects for an archetypal low-wage sector. We report that a continued focus on employment levels is indicated and that while experimentation with nonlinear trends may be productive their use is unlikely to dislodge the finding of considerably reduced negative employment effects." (Author's abstract, IAB-Doku) ((en))

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Arni, Patrick, Werner Eichhorst, Nico Pestel, Alexander Spermann & Klaus F. Zimmermann (2014): Der gesetzliche Mindestlohn in Deutschland. Einsichten und Handlungsempfehlungen aus der Evaluationsforschung. In: Schmollers Jahrbuch, Jg. 134, H. 2, S. 149-182.

Abstract

"Der gesetzliche Mindestlohn in Höhe von 8,50 Euro je Stunde wird zum 1. Januar 2015 in Deutschland eingeführt. Dieser Beitrag fasst die vorliegenden nationalen und internationalen Erfahrungen mit Mindestlöhnen zusammen. Dabei werden die Beschäftigungs- und Verteilungswirkungen sowie die fiskalischen Effekte mit Hilfe des IZA-Mikrosimulationsmodells abgeschätzt und mit Ergebnissen aus aktuellen Studien verglichen. Es zeigt sich, dass die Ergebnisse aus der Analyse von Branchenmindestlöhnen und aus Mikrosimulationen trotz aufgezeigter Problempotenziale keine abschließende Beurteilung erlauben. Deshalb plädieren die Autoren für eine systematische und unabhängige wissenschaftliche Begleitforschung und Evaluation des gesetzlichen Mindestlohns. Dies lässt Politik und Wählern eine faire Option für eine Kurskorrektur." (Autorenreferat, IAB-Doku)

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Arni, Patrick, Werner Eichhorst, Nico Pestel, Alexander Spermann & Klaus F. Zimmermann (2014): Kein Mindestlohn ohne unabhängige wissenschaftliche Evaluation. (IZA Standpunkte 65), Bonn, 28 S.

Abstract

"Die deutsche Bundesregierung plant die Einführung eines flächendeckenden Mindestlohns. Dieser Beitrag fasst die vorliegenden nationalen und internationalen Erfahrungen mit Mindestlöhnen zusammen. Er analysiert dabei die Konsequenzen für Beschäftigung und Einkommensverteilung und legt eine Abschätzung der zu erwartenden Wirkungen in Deutschland vor. Eine systematische und unabhängige wissenschaftliche Begleitforschung und Evaluation wird erforderlich sein, um mögliche dauerhafte Folgeschäden für den Arbeitsmarkt transparent zu machen. Dies lässt Politik und Wählern eine faire Option für eine Kurskorrektur." (Autorenreferat, IAB-Doku)

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Belman, Dale & Paul J. Wolfson (2014): What does the minimum wage do? Kalamazoo: Upjohn Institute for Employment Research, 470 S.

Abstract

"This book attempts to make sense of the research on the minimum wage that began in the early 1990s. The authors look at who is affected by the minimum wage, both directly and indirectly; which observable, measurable variables (e.g., wages, employment, school enrollment) the minimum wage influences; how long it takes for the variables to respond to the minimum wage and the size and desirability of the effect; why the minimum wage has the results it does (and not others); and the workers most likely to be affected by changes to the minimum wage." (Author's abstract, IAB-Doku) ((en))

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Cadena, Brian C. (2014): Recent immigrants as labor market arbitrageurs. Evidence from the minimum wage. In: Journal of urban economics, Jg. 80, H. March, S. 1-12. DOI:10.1016/j.jue.2013.10.002

Abstract

"This paper investigates the local labor supply effects of changes to the minimum wage by examining the response of low-skilled immigrants' location decisions. Canonical models emphasize the importance of labor mobility when evaluating the employment effects of the minimum wage; yet few studies address this outcome directly. Low-skilled immigrant populations shift toward labor markets with stagnant minimum wages, and this result is robust to a number of alternative interpretations. This mobility provides behavior-based evidence in favor of a non-trivial negative employment effect of the minimum wage. Further, it reduces the estimated demand elasticity using teens; employment losses among native teens are substantially larger in states that have historically attracted few immigrant residents." (Author's abstract, IAB-Doku) ((en))

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Centeno, Mário, Cláudia Duarte & Álvaro A. Novo (2014): The impact of the minimum wage on match stability. (IZA discussion paper 8703), Bonn, 26 S.

Abstract

"We explore increases in the nominal minimum wage in a difference-in-differences setting to estimate match survival wage elasticity. The elasticity is negative and larger than one for matches directly affected by minimum wage increases, those with paying below the new minimum wage. The impact of the minimum wage is stronger for young workers and the manufacturing sector, groups with a large and increasing share of low-wage workers. Given the low-wage mobility in the Portuguese labor market and the large share of workers directly affected by the minimum wage increase (reaching almost 18%), these results call for a careful analysis of the set of policies that interfere with low-wage employment." (Author's abstract, IAB-Doku) ((en))

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Clemens, Jeffrey & Michael Wither (2014): The minimum wage and the Great Recession. Evidence of effects on the employment and income trajectories of low-skilled workers. (NBER working paper 20724), Cambrige, Mass., 70 S. DOI:10.3386/w20724

Abstract

"We estimate the minimum wage's effects on low-skilled workers' employment and income trajectories. Our approach exploits two dimensions of the data we analyze. First, we compare workers in states that were bound by recent increases in the federal minimum wage to workers in states that were not. Second, we use 12 months of baseline data to divide low-skilled workers into a 'target' group, whose baseline wage rates were directly affected, and a 'within-state control' group with slightly higher baseline wage rates. Over three subsequent years, we find that binding minimum wage increases had significant, negative effects on the employment and income growth of targeted workers. Lost income reflects contributions from employment declines, increased probabilities of working without pay (i.e., an 'internship' effect), and lost wage growth associated with reductions in experience accumulation. Methodologically, we show that our approach identifies targeted workers more precisely than the demographic and industrial proxies used regularly in the literature. Additionally, because we identify targeted workers on a population-wide basis, our approach is relatively well suited for extrapolating to estimates of the minimum wage's effects on aggregate employment. Over the late 2000s, the average effective minimum wage rose by 30 percent across the United States. We estimate that these minimum wage increases reduced the national employment-to-population ratio by 0.7 percentage point." (Author's abstract, IAB-Doku) ((en))

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Davis, Abigail, Donald Hirsch, Rie Iwanaga, Masami Iwata, Junko Shigekawa, Yuka Uzuki & Atsuhiro Yamada (2014): Comparing the minimum income standard in the UK and Japan. Methodology and outcome. In: Social policy and society, Jg. 13, H. 1, S. 89-101. DOI:10.1017/S147474641300033X

Abstract

"Minimum Income Standard (MIS) research involves an innovative methodology that combines consensual decisions made through discussion by members of the public, supported by input from experts. MIS addresses questions about income adequacy, and in particular, what is the income that people need in order to reach a minimum socially acceptable standard of living. The first MIS for Britain was published in the UK in 2008, and in 2010 researchers from Japan and the UK began to collaborate on developing a comparable Minimum Income Standard for Japan. This article discusses the differences and similarities between the UK and Japanese MIS. It looks at the challenges of applying the methodology in a very different setting and compares the results of the research in the UK and in Japan. Although there are notable differences in the lists of goods and services that comprise the budgets, there are also some striking similarities. This research suggests that the MIS methodology offers an approach that can be used in different countries to inform discussions on contemporary living standards and societal norms, and to enable international comparisons to be drawn." (Text excerpt, IAB-Doku) ((en))

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Dickens, Richard, Rebecca Riley & David Wilkinson (2014): The UK minimum wage at 22 years of age. A regression discontinuity approach. In: Journal of the Royal Statistical Society. Series A, Statistics in Society, Jg. 177, H. 1, S. 95-114. DOI:10.1111/rssa.12003

Abstract

"A regression discontinuity approach is used to analyse the effect of the legislated increase in the UK national minimum wage that occurs at age 22 years on various labour market outcomes. Using data from the Labour Force Survey we find an increase of 3 - 4 percentage points in the rate of employment of low skilled individuals. Unemployment declines among men and inactivity among women. We find no such effect before the national minimum wage was introduced and no robust impacts at age 21 or 23 years. Our results are robust to a range of specification tests." (Author's abstract, Published by arrangement with John Wiley & Sons) ((en))

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Giulietti, Corrado (2014): Is the minimum wage a pull factor for immigrants? In: ILR review, Jg. 67, H. Supplement, S. 649-674. DOI:10.1177/00197939140670S308

Abstract

"This paper studies the impact of the minimum wage on immigration. A framework is presented in which inflows of immigrants are a function of the expected wage growth induced by the minimum wage. The analysis focuses on the US minimum wage increase of 1996 and 1997, using data from the Current Population Survey and the census. The estimation strategy consists of using the fraction of affected workers as the instrumental variable for the growth of expected wages. The findings show that States in which the growth of expected wages was relatively large (around 20%) exhibit inflow rate increases that are four to five times larger than States in which average wages grew 10% less. Placebo tests confirm that the policy did not affect the immigration of high wage earners." (Author's abstract, IAB-Doku) ((en))

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Grimshaw, Damian, Gerhard Bosch & Jill Rubery (2014): Minimum wages and collective bargaining: what types of pay bargaining can foster positive pay equity outcomes? In: BJIR, Jg. 52, H. 3, S. 470-498. DOI:10.1111/bjir.12021

Abstract

"Using data from interviews and collective agreements in five European countries, this article analyses the relationship between collective bargaining and the minimum wage. In a context of changing minimum wage policy and competing government objectives, the findings illuminate how pay bargaining strategies of trade unions and employers shape the pay equity effects of minimum wage policy. Two general forms are identified: direct responses to a changing national minimum wage, and responses to the absence or weakness of a national minimum wage. The article explains how particular intersections of minimum wage policy and collective bargaining, together with country and sector contingencies, shape the form of pay bargaining and pay equity outcomes." (Author's abstract, IAB-Doku) ((en))

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Hanson, Andrew & Zackary Hawley (2014): The $10.10 minimum wage proposal. An evaluation across states. In: Journal of labor research, Jg. 35, H. 4, S. 323-345. DOI:10.1007/s12122-014-9190-8

Abstract

"This paper offers state-level estimates of job loss from increasing the federal minimum wage to $10.10 per hour in 2016. Given the vast differences in nominal wages across geography, a federal increase in minimum wage that is not indexed to local wage levels will have a differential impacts across states. The proposed minimum wage would be binding for between 17 and 18 % of workers nationally. We estimate coverage rates ranging from just 4 % in Washington D.C. to as high as 51 % in Puerto Rico, with 13 states having at least 20 % of the employed population covered by the proposal. Using labor demand elasticities from previous empirical work, these coverage rates imply national employment losses between 550,000 and 1.5 million workers. The range of state estimates shows that states are differentially impacted, with high-end loss estimates ranging between 2.8 % of covered employees in Arkansas to over 41 % in Puerto Rico. Sensitivity analysis highlights that using even a simple methodology with relatively few assumptions for estimating employment loss from minimum wage changes is subject to a high degree of uncertainty." (Author's abstract, IAB-Doku) ((en))

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Hoffman, Saul D. (2014): Employment effects of the 2009 minimum wage increase. New evidence from state-based comparisons of workers by skill level. In: The B.E. Journal of Economic Analysis and Policy, Jg. 14, H. 3, S. 695-721. DOI:10.1515/bejeap-2012-0004

Abstract

"In July, 2009, when the US Federal minimum wage was increased from $6.55 to $7.25, individuals in nearly one-third of all states were unaffected, since the state minimum wage already exceeded $7.25. We use this variation to make comparisons of the employment of low-skill workers with their peers across states and with workers within states who were arguably unaffected by the increase, using DID and DIDID methods. Our data come from the 2009 Current Population Survey, 4 and 5 months before and after the increase. We find little evidence of negative employment effects for teens or less-educated adults. Further control for demographic characteristics and state fixed effects have relatively small effects on the size and significance of estimated effects." (Author's abstract, IAB-Doku) ((en))

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Martins, Pedro S. (2014): 30,000 minimum wages. The economic effects of collective bargaining extensions. (IZA discussion paper 8540), Bonn, 36 S.

Abstract

"Several countries extend collective bargaining agreements to entire sectors, therefore binding non-subscriber workers and employers. These extensions may address coordination issues but may also distort competition by imposing sector-specific minimum wages and other work conditions that are not appropriate for many firms. In this paper, we analyse the impact of such extensions along several margins drawing on firm-level monthly data for Portugal, a country where extensions have been widespread until recently. We find that both formal employment and wage bills in the relevant sector fall, on average, by 2% - and by 25% more across small firms - over the four months after an extension is issued. These results are driven by both reduced hirings and increased firm closures. On the other hand, informal work, not subject to labour law or extensions, tends to increase. Our findings are robust to several checks, including a falsification exercise based on extensions that were announced but not implemented." (Author's abstract, IAB-Doku) ((en))

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Neumark, David, John Michael Ian S. Salas & William Wascher (2014): More on recent evidence on the effects of minimum wages in the United States. In: IZA journal of labor policy, Jg. 3, S. 1-26. DOI:10.1186/2193-9004-3-24

Abstract

"A central issue in estimating the employment effects of minimum wages is the appropriate comparison group for states (or other regions) that adopt or increase the minimum wage. In recent research, Dube et al. (2010) and Allegretto et al. (2011) argue that past U.S. research is flawed because it does not restrict comparison areas to those that are geographically proximate and fails to control for changes in low-skill labor markets that are correlated with minimum wage increases. They argue that using 'local controls' establishes that higher minimum wages do not reduce employment of less-skilled workers. In Neumark et al. (2014), we present evidence that their methods fail to isolate more reliable identifying information and lead to incorrect conclusions. Moreover, for subsets of treatment groups where the identifying variation they use is supported by the data, the evidence is consistent with past findings of disemployment effects. Allegretto et al. (2013) have challenged our conclusions, continuing the debate regarding some key issues regarding choosing comparison groups for estimating minimum wage effects. We explain these issues and evaluate the evidence. In general, we find little basis for their analyses and conclusions, and argue that the best evidence still points to job loss from minimum wages for very low-skilled workers - in particular, for teens." (Author's abstract, IAB-Doku) ((en))

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Neumark, David, J.M. Ian Salas & William Wascher (2014): Revisiting the minimum wage-employment debate. Throwing out the baby with the bathwater? In: ILR review, Jg. 67, H. Supplement, S. 608-648. DOI:10.1177/00197939140670S307

Abstract

"We revisit the minimum wage-employment debate, which is as old as the Department of Labor. In particular, we assess new studies claiming that the standard panel data approach used in much of the 'new minimum wage research' is flawed because it fails to account for spatial heterogeneity. These new studies use research designs intended to control for this heterogeneity and conclude that minimum wages in the United States have not reduced employment. We explore the ability of these research designs to isolate reliable identifying information and test the untested assumptions in this new research about the construction of better control groups. Our evidence points to serious problems with these research designs. We conclude that the evidence still shows that minimum wages pose a trade-off of higher wages for some against job losses for others, and that policymakers need to bear this trade-off in mind when making decisions about increasing the minimum wage." (Author's abstract, IAB-Doku) ((en))

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Papps, Kerry (2014): Career wage profiles and the minimum wage. (IZA discussion paper 8421), Bonn, 21 S.

Abstract

"A model of on-the-job training in the presence of a minimum wage is presented. This predicts that the minimum wage will have a negative effect on a worker's subsequent wage growth when the labour market is competitive but a U-shaped effect when it is not competitive. This prediction is then tested using data from the Annual Survey of Hours and Earnings in the United Kingdom. Workers who were affected by the minimum wage before age 22 are found to have significantly lower wage growth later in life than others, but only if they worked on jobs that were not covered by a collective labour agreement. Evidence suggests that this difference in wage growth reflects differences in productivity between workers. The results reconcile previous theoretical predictions by Becker and Acemoglu and Pischke." (Author's abstract, IAB-Doku) ((en))

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Sabia, Joseph J. (2014): The effects of minimum wages over the business cycle. In: Journal of labor research, Jg. 35, H. 3, S. 227-245. DOI:10.1007/s12122-014-9180-x

Abstract

"This study examines whether the low-skilled employment effects of minimum wage increases differ over the state business cycle. Controlling for spatial heterogeneity via state-specific productivity shocks to the low-skilled sector and state-specific non-linear time trends, the results suggest that minimum wage increases between 1989 and 2012 reduce low-skilled employment more during recessions than expansions. Estimated employment elasticities with respect to the minimum wage range from 0 to -0.2 during state economic expansions, but reach as high as -0.3 during troughs in the business cycle." (Author's abstract, IAB-Doku) ((en))

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Schulten, Thorsten (2014): Mindestlohnregime in Europa ... und was Deutschland von ihnen lernen kann. (Friedrich-Ebert-Stiftung. Studie), Bonn, 16 S.

Abstract

"- Ab dem 1. Januar 2015 soll in Deutschland ein allgemeiner gesetzlicher Mindestlohn gelten. Wie das neue deutsche Mindestlohnregime genau aussehen wird, muss jedoch erst im Gesetzgebungsverfahren definiert werden.
- In Deutschland würde ein Mindestlohn von 8,50 Euro noch unterhalb des kaufkraftbereinigten Mindestlohns in Großbritannien und damit am unteren Rand der 'Spitzengruppe' von sieben europäischen Ländern liegen.
- Die gesetzlichen Mindestlöhne in Europa liegen allesamt unterhalb der so genannten 'Niedriglohnschwelle'. In vielen EU-Staaten gehen die gesetzlichen Mindestlöhne nicht einmal über das Niveau von 'Armutslöhnen' hinaus. Deutschland weist bislang einen der größten Niedriglohnsektoren in Europa auf.
- Die in Deutschland bei Mindestlohngegnern beliebte 'Politisierungsthese', wonach Mindestlohnerhöhungen als Wahlgeschenke verteilt werden, lässt sich nicht belegen. Eher schon finden sich Anzeichen für eine 'Politisierung von rechts', bei der oft eher konservative Regierungen sich dadurch zu profilieren suchen, dass sie den Mindestlohn für einen längeren Zeitraum nicht mehr anpassen.
- Sollte es in Deutschland zu einem Anpassungsmechanismus kommen, der eher kleine Anpassungsschritte begünstigt, dann läuft das neue deutsche Mindestlohnregime Gefahr, am Ende nur relativ bescheidene strukturelle Wirkungen sicherstellen zu können." (Autorenreferat, IAB-Doku)

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Schulten, Thorsten (2014): WSI-Mindestlohnbericht 2014 - stagnierende Mindestlöhne. In: WSI-Mitteilungen, Jg. 67, H. 2, S. 132-139. DOI:10.5771/0342-300X-2014-2-132

Abstract

"Der WSI-Mindestlohnbericht 2014 gibt einen aktuellen Überblick über die gegenwärtige Mindestlohnpolitik in Europa und ausgewählten außereuropäischen Staaten. Unter Auswertung der WSI-Mindestlohndatenbank werden neueste Daten zur Höhe und Entwicklung gesetzlicher Mindestlöhne präsentiert. In vielen Ländern lässt sich bereits seit einigen Jahren eine eher stagnierende Mindestlohnentwicklung beobachten. Dieser Trend hat sich auch im Jahr 2013 fortgesetzt. Allerdings mehren sich mittlerweile die Stimmen, die für die nähere Zukunft eine deutlich kräftigere Mindestlohnerhöhung einfordern." (Autorenreferat, IAB-Doku)

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Zavodny, Madeline (2014): Who benefits from the minimum wage - natives or migrants? There is no evidence that increases in the minimum wage have hurt immigrants. (IZA world of labor 98), Bonn, 10 S. DOI:10.15185/izawol.98

Abstract

"According to economic theory, a minimum wage reduces the number of low-wage jobs and increases the number of available workers, allowing greater hiring selectivity. More competition for a smaller number of low-wage jobs will disadvantage immigrants if employers perceive them as less skilled than native-born workers - and vice versa. Studies indicate that a higher minimum wage does not hurt immigrants, but there is no consensus on whether immigrants benefit at the expense of natives. Studies also reach disparate conclusions on whether higher minimum wages attract or repel immigrants." (Author's abstract, IAB-Doku) ((en))

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Addison, John T., McKinley L. Blackburn & Chad D. Cotti (2013): Minimum wage increases in a recessionary environment. In: Labour economics, Jg. 23, H. August, S. 30-39. DOI:10.1016/j.labeco.2013.02.004

Abstract

"Do seemingly large minimum-wage increases in an environment of deep recession produce clearer evidence of disemployment than is often observed in the modern minimum wage literature? This paper uses three data sets to examine the employment effects of the most recent increases in the U.S. minimum wage. We focus on two high-risk groups - restaurant-and-bar employees and teenagers - for the years 2005 - 2010. Although the evidence for a general disemployment effect is not uniform, estimates do suggest the presence of a negative minimum wage effect in states hardest hit by the recession." (Author's abstract, IAB-Doku) ((en))

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Allegretto, Sylvia, Arindrajit Dube, Michael Reich & Ben Zipperer (2013): Credible research designs for minimum wage studies. (IZA discussion paper 7638), Bonn, 79 S.

Abstract

"Over the past two decades, the states that experienced larger minimum wage increases have been spatially clustered. We show that these states also systematically differed from other states with respect to the depth of their business cycles, growth in upper-half wage inequality, increased job polarization, and political-economy. We present estimates of minimum wage effects for teens and restaurant workers using five datasets and six different approaches to controlling for spatial confounds. We show that the disemployment results suggested by the canonical two-way fixed effects model are spurious, as these specifications generally fail falsification tests for pre-existing trends. Using policy variation within local areas (county pairs, commuting zones) or regions, as well as inclusion of state-specific trends, typically renders the employment effect small in magnitude and statistically indistinguishable from zero. We additionally find that employment effects are close to zero when we account for heterogeneity using lagged dependent variables and dynamic panel models. We also present evidence using the synthetic control estimator: pooling across state minimum wage increases between 1997 and 2007, the synthetic control estimate shows no evidence of job losses for teens. We confirm the validity of local controls by demonstrating that synthetic control weights decline with distance: a donor state 100 miles away receives a weight seven times as large as a state 2,000 miles away. We also directly show that neighbouring counties are more similar in terms of covariates than are other counties. These findings refute the claims made in a recent paper by Neumark, Salas and Wascher that criticize the use of local controls. We conclude by proposing some guidelines for assessing convincing research designs for minimum wage studies." (Author's abstract, IAB-Doku) ((en))

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Aumann, Annemarie (2013): Ausgewählte Probleme des polnischen Mindestlohns. In: Zeitschrift für ausländisches und internationales Arbeits- und Sozialrecht, Jg. 27, H. 1, S. 18-31.

Abstract

"Vor dem Hintergrund der in Deutschland anhaltenden Diskussion' über die Einführung eines branchenübergreifenden gesetzlichen Mindestentgelts lohnt der Blick über die Landesgrenzen hinaus auf die Lösungen, die in anderen Staaten gewählt wurden. Weltweit haben mehr als 100 Staaten einen gesetzlichen Mindestlohn;2 dazu gehören auch 21 von 28 Mitgliedstaaten der Europäischen Union. Die Höhe des Mindestlohns variiert dabei innerhalb der Union beträchtlich - die Spanne reicht von 0,80 EURO/Stunde in Bulgarien bis 10,41 EURO/Stunde in Luxemburg.3 Auch in Polen hat der gesetzliche branchenübergreifende Mindestlohn eine lange Tradition. Während er vor 1989 künstlich auf niedrigem Niveau gehalten wurde, weil er hauptsächlich als Referenzgröße für die Berechnung von Löhnen in staatlichen Unternehmen diente und ein Mechanismus zur Indexbindung in Inflationszeiten war, ist er heute ein wichtiges Instrument staatlicher Arbeitspolitik.4 Der polnische Gesetzgeber hat sich dabei für einen Festsetzungsmechanismus entschieden, der in jüngerer Zeit Gegenstand der Fachdiskussion geworden ist. Rechtsgrundlagen, Ausgestaltung und Kritik dieses Modells sind Gegenstand des vorliegenden Beitrags." (Textauszug, IAB-Doku)

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Avouyi-Dovi, Sanvi, Denis Fougère & Erwan Gautier (2013): Wage rigidity, collective bargaining and the minimum wage. Evidence from French agreement data. In: The Review of Economics and Statistics, Jg. 95, H. 4, S. 1337-1351. DOI:10.1162/REST_a_00329

Abstract

"Using data sets on wage agreements at both industry and firm levels in France, we document stylized facts on wage stickiness. The average duration of wages is a little less than one year, and 10% of wages are modified each month by a wage agreement. The frequency of wage change agreements is staggered over the year, but the frequency of effective wage changes is seasonal. The national minimum wage has a significant impact on the probability and the seasonality of wage changes. Negotiated wage increases are correlated with inflation, minimum wage increases, and firm profitability." (Author's abstract, IAB-Doku) ((en))

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Bhorat, Haroon, Ravi Kanbur & Natasha Mayet (2013): A note on measuring the depth of minimum wage violation. In: Labour, Jg. 27, H. 2, S. 192-197. DOI:10.1111/labr.12010

Abstract

"In the empirical literature on minimum wage enforcement, the standard approach is to measure the number of violations, not their depth. In this paper we present a family of violation indices that, by analogy with poverty indices, can emphasize the depth of violation to different degrees. The standard measure is a special case of this family of indices, but other members of the family highlight the depth of violation. We present an application to South Africa to show that the depth of violation matters, and is not captured by the standard measure in actual situations." (Author's abstract, IAB-Doku) ((en))

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Boffy-Ramirez, Ernest (2013): Minimum wages, earnings, and migration. In: IZA journal of migration, Jg. 2, S. 1-24. DOI:10.1186/2193-9039-2-17

Abstract

"Does increasing a state's minimum wage induce migration into the state? Previous literature has shown mobility in response to welfare benefit differentials across states, yet few have examined the minimum wage as a cause of mobility. Focusing on low-skilled immigrants, this paper empirically examines the effect of minimum wages on location decisions within the United States. This paper expands upon minimum wage and immigration literatures by demonstrating that the choice of destination is sensitive to minimum wage changes, and that the effects are highly dependent on the number of years an immigrant has resided in the U.S." (Author's abstract, IAB-Doku) ((en))

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Brochu, Pierre & David A. Green (2013): The impact of minimum wages on labour market transitions. In: The economic journal, Jg. 123, H. 573, S. 1203-1235. DOI:10.1111/ecoj.12032

Abstract

"We investigate differences in labour market transition rates between high and low minimum wage regimes using Canadian data spanning 1979 - 2008. We find that higher minimum wages result in lower hiring rates but also lower job separation rates. Importantly, the reduced separation rates are due mainly to reductions in layoffs, occur in the first six months of a job and are present for unskilled workers of all ages. Thus, jobs in higher minimum wage regimes are more stable but harder to get. For older workers, these effects are almost exactly offsetting, resulting in little impact on the employment rate." (Author's abstract, IAB-Doku) ((en))

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Cette, Gilbert, Valérie Chouard & Gregory Verdugo (2013): Minimum wage and the average wage in France. A circular relationship? In: Economics Bulletin, Jg. 33, H. 3, S. 1832-1839.

Abstract

"This paper investigates whether increases in the minimum wage in France have the same impact on the average wage when intended to preserve the purchasing power of the minimum wage as when intended to raise it. We find that the impact of the minimum wage on the average wage is strong, but differs depending on the indexation factor. We also find some empirical evidence of circularity between the average wage and the minimum wage." (Author's abstract, IAB-Doku) ((en))

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Coomer, Nicole M. & Walter J. Wessels (2013): The effect of the minimum wage on covered teenage employment. In: Journal of labor research, Jg. 34, H. 3, S. 253-280. DOI:10.1007/s12122-013-9160-6

Abstract

"Unlike previous studies on the minimum wage, which focused on its effect on total teenage employment, we examine its effect on covered employment. A covered job was defined to be one paying the minimum wage or more. Using contemporary wages to classify workers this way may inflate the estimated effect of minimum wages on covered employment. To avoid this bias, covered jobs are identified using a logit procedure run over years in which the minimum age was not increased. We find that minimum wages reduced covered employment significantly more than total employment. We also show that covered employment may be overstated in the period following an increase in the minimum wage." (Author's abstract, IAB-Doku) ((en))

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Dube, Arindrajit, T. William Lester & Michael Reich (2013): Minimum wage shocks, employment flows and labor market frictions. (IRLE working paper 2013-149), Berkeley, CA, 63 S.

Abstract

"We provide the first estimates of the effects of minimum wages on employment flows in the U.S. labor market, identifying the impact using policy discontinuities at state borders. We find that minimum wages have a sizable negative effect on employment flows but not stocks: separations and accessions fall among affected workers. We interpret our findings using a job-ladder model, in which minimum wage increases can reduce job-to-job transitions. We find that a standard calibration of the model generates predicted relative magnitudes of the employment stock and flow elasticities that are very close to our reduced-form estimates." (Author's abstract, IAB-Doku) ((en))

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Dube, Arindrajit (2013): Minimum wages and aggregate job growth. Causal effect or statistical artifact? (IZA discussion paper 7674), Bonn, 13 S.

Abstract

"A recent paper by Meer and West argues that minimum wages reduce aggregate employment growth, and that this relationship is masked by looking at employment levels. I also find a negative association between minimum wages and aggregate employment growth using both the Business Dynamics Statistics and the Quarterly Census of Employment and Wages datasets, and it is sizable for some time periods. However, I show that this negative association is present in exactly the wrong sectors. It is particularly strong in manufacturing which hires very few minimum wage workers. At the same time, there is no such association in retail, or in accommodation and food services - which together hire nearly 2/3 of all minimum wage workers. These results indicate that the negative association between minimum wages and aggregate employment growth does not represent a causal relationship. Rather the association stems from an inability to account for differences between high and low minimum wage states and the timing of minimum wage increases. Consistent with that interpretation, when I use bordering counties to construct more credible control groups, I find no such negative correlation between minimum wages and overall employment growth." (Author's abstract, IAB-Doku) ((en))

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Epstein, Gil S. & Odelia Heizler-Cohen (2013): Minimum wages and the creation of illegal migration. In: Economics Bulletin, Jg. 33, H. 1, S. 434-441.

Abstract

"In this paper, we explore employers' decisions regarding the employment of legal and illegal immigrants in the presence of endogenous adjustment cost, minimum wages and an enforcement budget. We show that increasing the employment of legal foreign workers will increase the number of illegal immigrants which will replace the employment of the local population and thus creating illegal migration." (Author's abstract, IAB-Doku) ((en))

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Fidrmuc, Jan & J. D. Tena (2013): National minimum wage and employment of young workers in the UK. (CESifo working paper 4286), München, 30 S.

Abstract

"We analyze the impact of the UK national minimum wage (NMW) on the employment of young workers. The previous literature found little evidence of an adverse impact of the NMW on the UK labor market. We focus on the age-related increases in the NMW at 18 and 22 years of age. Using regression discontinuity design, we fail to find any effect of turning 22. However, we find a significant and negative employment effect for male workers at 21, which we believe to be an anticipation effect. We also find a negative effect for both genders upon turning 18. The age-related NMW increases may have an adverse effect on employment of young workers, with this effect possibly occurring already well in advance of reaching the threshold age." (Author's abstract, IAB-Doku) ((en))

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Furåker, Bengt & Kristina Loven Selden (2013): Trade union cooperation on statutory minimum wages? A study of European trade union positions. In: Transfer, Jg. 19, H. 4, S. 507-520. DOI:10.1177/1024258913501766

Abstract

"Legislation on minimum wages exists in most EU Member States, but European trade unions have very different views on it. Nordic unions are especially negative, whereas many other union organizations are strongly positive. The present article examines these differences, explores how they can be understood and discusses their possible consequences for transnational union cooperation on issues related to statutory minimum wages. It is primarily based on survey and interview data." (Author's abstract, IAB-Doku) ((en))

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Garnero, Andrea, Stephan Kampelmann & François Rycx (2013): Sharp teeth or empty mouths? Revisiting the minimum wage bite with sectoral data. (IZA discussion paper 7351), Bonn, 36 S.

Abstract

"The paper explores the link between different institutional features of minimum wage systems and the minimum wage bite. We notably address the striking absence of studies on sectoral-level minima and exploit unique data covering 17 European countries and information from more than 1100 collective bargaining agreements. Results provide evidence for a neglected trade-off: systems with bargained sectoral-level minima are associated with higher Kaitz indices than systems with statutory floors, but also with more individuals actually paid below prevailing minima. Higher collective bargaining coverage can to some extent reduce this trade-off between sharp teeth (high wage floors) and empty mouths (noncompliance/noncoverage)." (Author's abstract, IAB-Doku) ((en))

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Giuliano, Laura (2013): Minimum wage effects on employment, substitution, and the teenage labor supply. Evidence from personnel data. In: Journal of labor economics, Jg. 31, H. 1, S. 155-194. DOI:10.1086/666921

Abstract

"Using personnel data froma large US retail firm, I examine the firm's response to the 1996 federal minimum wage increase. Compulsory increases in average wages had negative but statistically insignificant effects on overall employment. However, increases in the relative wages of teenagers led to significant increases in the relative employment of teenagers, especially younger and more affluent teenagers. Further analysis suggests a pattern consistent with noncompetitive models. Where the legislation affected mainly the wages of teenagers and so was only moderately binding, it led both to higher teenage labor market participation and to higher absolute employment of teenagers." (Author's abstract, IAB-Doku) ((en))

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Gorry, Aspen (2013): Minimum wages and youth unemployment. In: European Economic Review, Jg. 64, H. November, S. 57-75. DOI:10.1016/j.euroecorev.2013.08.004

Abstract

"This paper constructs a labor search model to explore the effects of minimum wages on youth unemployment. To capture the gradual decline in unemployment for young workers as they age, the standard search model is extended so that workers gain experience when employed. Experienced workers have higher average productivity and lower job finding and separation rates that match wage and worker flow data. In this environment, minimum wages can have large effects on unemployment because they interact with a worker's ability to gain job experience. The increase in minimum wages between 2007 and 2009 can account for a 0.8 percentage point increase in the steady state unemployment rate and a 2.8 percentage point increase in unemployment for 15-24 year old workers in the model parameterized to simulate outcomes of high school educated workers. Minimum wages can also help explain the high rates of youth unemployment in France compared to the United States." (Author's abstract, IAB-Doku) ((en))

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Hoffeld, Wolfgang (2013): Mindestlöhne und X-Effizienz. (International vergleichende Schriften zur Personalökonomie und Arbeitspolitik 22), München: Hampp, 165 S.

Abstract

"Über das Für und Wider gesetzlicher Mindestlöhne wird seit jeher sowohl auf politischer als auch auf wissenschaftlicher Ebene intensiv diskutiert. Für die Kritiker eines gesetzlichen Mindestlohnes stellt der potenzielle Anstieg der Arbeitslosigkeit das Hauptargument gegen gesetzlich vorgeschriebene Lohnuntergrenzen dar. Allerdings deutet die empirische Evidenz der vergangenen Jahre immer seltener auf den intuitiv zu erwartenden negativen Zusammenhang zwischen Mindestlöhnen und Beschäftigung hin. Insbesondere konnten bislang keine substanziellen negativen Effekte der Mindestlohneinführung in Großbritannien im Jahr 1999 identifiziert werden. Im Vordergrund der Untersuchung steht die Hypothese, dass die Mindestlohneinführung in Großbritannien zu einer Erhöhung der Effizienz in der Produktion der stärker betroffenen Unternehmen geführt hat. Diese Hypothese stützt sich auf das sogenannte 'Schock-Argument' des Mindestlohnes, wonach eine Mindestlohneinführung oder eine Mindestlohnerhöhung als exogener Schock für die betroffenen Unternehmen interpretiert wird. Anhand von Unternehmensdaten aus der Datenbank FAME sowie eines speziellen Datensatzes zur Branche der britischen Pflegeheime wird die Frage nach einer effizienzsteigernden Wirkung der Mindestlohneinführung in Großbritannien mithilfe der Data-Envelopment-Analyse untersucht, die erstmals in diesem Kontext angewendet wird. Die Ergebnisse lassen auf einen positiven Einfluss des Mindestlohnes auf die Effizienz der betroffenen Unternehmen schließen. Die Arbeit leistet somit einen wesentlichen Beitrag zur Erklärung des Phänomens beschäftigungsneutraler bindender Mindestlöhne." (Autorenreferat, IAB-Doku)

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Jones, M. K., R. J. Jones, P. L. Latreille, P. D. Murphy & P. J. Sloane (2013): A regional analysis of flows into and out of the UK National Minimum Wage. In: Applied Economics, Jg. 45, H. 21, S. 3074-3087. DOI:10.1080/00036846.2012.695069

Abstract

"This article utilizes the panel element of the UK Labour Force Survey (LFS) to identify for individual regions total inflows and outflows and hazards for those individuals paid at or below the National Minimum Wage (NMW). In particular, it examines the extent and direction of the correlation between low-pay inflows and outflows and the economic cycle. Further, it examines the impact of regional variations in the bite of the NMW on regional flows into and out of the NMW." (Author's abstract, IAB-Doku) ((en))

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Kalenkoski, Charlene M. & Donald J. Lacombe (2013): Minimum wages and teen employment. A spatial panel approach. In: Papers in regional science, Jg. 92, H. 2, S. 407-417. DOI:10.1111/j.1435-5957.2012.00453.x

Abstract

"The authors employ spatial econometrics techniques and annual averages data from the US Bureau of Labor Statistics for 1990-2004 to examine how changes in the minimum wage affect teen employment. Spatial econometrics techniques account for the fact that employment is correlated across states. The authors find a combined direct and indirect effect of minimum wages on teen employment to be -2.1 per cent for a 10 per cent increase in the real effective minimum wage. Ignoring spatial correlation underestimates the magnitude of the effect of minimum wages on teen employment." (Author's abstract, IAB-Doku) ((en))

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Kambayashi, Ryo, Daiji Kawaguchi & Ken Yamada (2013): Minimum wage in a deflationary economy. The Japanese experience, 1994 - 2003. In: Labour economics, Jg. 24, H. October, S. 264-276. DOI:10.1016/j.labeco.2013.09.005

Abstract

"The statutory minimum wage in Japan has increased continuously for a few decades until the early 2000s even during a period of deflation. This paper examines the impact of the minimum wage on wage and employment outcomes under this unusual circumstance. We find that the minimum-wage increase resulted in the compression of the lower tail of the wage distribution among women and that the wage compression is only partially attributable to the loss of employment. The continuous increase in the minimum wage accounts for one half of the reduction in lower-tail inequality that occurred among women during the period between 1994 and 2003." (Author's abstract, IAB-Doku) ((en))

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Khamis, Melanie (2013): Does the minimum wage have a higher impact on the informal than on the formal labor market? Evidence from quasi-experiments. In: Applied Economics, Jg. 45, H. 4, S. 477-495. DOI:10.1080/00036846.2011.605763

Abstract

"This article investigates a puzzle in the literature on labour markets in developing countries: labour legislations not only have an impact on the formal labour market but also an impact on the informal sector. It has even been argued that the impact on the informal sector in the case of the minimum wage is stronger than on the formal sector. Using quasi-experiments of minimum wage changes and thereby exploiting geographical variation of the minimum wage bite, I find evidence for this hypothesis. Informal workers, workers without social security contribution, experienced significant wage increases when the minimum wage was raised while formal workers did not. This result highlights that noncompliance with one labour legislation, the social security contribution, does not necessarily imply noncompliance to other labour laws such as the minimum wage." (Author's abstract, IAB-Doku) ((en))

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Laporšek, Suzana (2013): Minimum wage effects on youth employment in the European Union. In: Applied Economics Letters, Jg. 20, H. 14, S. 1288-1292. DOI:10.1080/13504851.2013.799752

Abstract

"The purpose of this article is to estimate minimum wage effects on youth employment in the European Union (EU). The analysis employs a panel regression method with fixed effects and uses data for 18 EU member states with statutory minimum wage over the period 1996 to 2011. The analysis is restricted to teenage workers between 15 and 19 years of age and young workers between 20 and 24 years of age. The study finds a negative, statistically significant impact of minimum wage on youth employment, by which the disemployment effect appears to be stronger for teenage workers. The effect remains negative and statistically significant also when controlled for other labour market institutions. Taking into account empirical results, we can conclude that EU countries should be more cautious when setting up minimum wages for young workers, as disemployment effects may have been downplayed." (Author's abstract, IAB-Doku) ((en))

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Manning, Alan (2013): Minimum wages: A view from the UK. In: Perspektiven der Wirtschaftspolitik, Jg. 14, H. 1/2, S. 57-66. DOI:10.1111/pers.12004

Abstract

"In the past economists were generally hostile to the idea of a minimum wage regarding those who supported the policy as being economically illiterate. But the balance of professional opinion has also shifted. In this article I will describe the evidence that has led to this position, largely seen through the experience of the UK with the introduction of its National Minimum Wage (NMW) in 1999. The article will set out a brief history of minimum wages in the UK, then summarize the evidence on the impact of the NMW on employment and wage inequality and then briefly describe the lessons that might be learned for Germany." (Text excerpt, IAB-Doku) ((en))

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Muravyev, Alexander & Aleksey Oshchepkov (2013): Minimum wages, unemployment and informality. Evidence from panel data on Russian regions. (IZA discussion paper 7878), Bonn, 36 S.

Abstract

"This paper revisits labor market effects of the minimum wage by taking advantage of a unique institutional setting and rich data from Russia that cover 89 regions over 10 years, from 2001 to 2010. Our empirical analysis draws on the methodology introduced by Neumark and Wascher, in which labor market outcomes at the regional level are related to the relative minimum wage (captured by the Kaitz index) in a panel setting. We find that the minimum wage raises unemployment among young workers aged 15 to 24. In contrast, there is no evidence of disemployment effects of the minimum wage for workers aged 25-72, including women. In addition, minimum wage hikes are associated with an increase in informal employment." (Author's abstract, IAB-Doku) ((en))

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Nguyen, Cuong Viet (2013): The impact of minimum wages on employment of low-wage workers. Evidence from Vietnam. In: Economics of Transition, Jg. 21, H. 3, S. 583-615. DOI:10.1111/ecot.12022

Abstract

"This study provides empirical evidence on the impact of a minimum wage increase on employment of workers in the formal sector who have wages below the minimum level in Vietnam. Using the difference-in-differences with propensity score matching and the Vietnam Household Living Standard Surveys of 2004 and 2006, the article finds that the minimum wage increase in 2005 reduced the proportion of workers having a formal sector job among low-wage workers. Most workers who lost formal sector jobs became self-employed." (Author's abstract, IAB-Doku) ((en))

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Rani, Uma, Patrick Belser, Martin Oelz & Setareh Ranjbar (2013): Minimum wage coverage and compliance in developing countries. In: International Labour Review, Jg. 152, H. 3/4, S. 381-410. DOI:10.1111/j.1564-913X.2013.00197.x

Abstract

"Using household and labour force survey data from 11 developing countries, the authors calculate rates of minimum wage compliance for formal/ informal employees covered by current legislation and assess the average 'depth' of violations. Though compliance is negatively related to the ratio of minimum to median wages, countries with a national minimum wage set at a meaningful level typically achieve higher compliance rates than countries with occupational or industry- specific minimum wage systems. However, better compliance - especially for women, ethnic groups, and unskilled and informal workers - also depends on contextualized yet comprehensive minimum wage policies combining union/employer involvement, awareness-raising and credible enforcement." (Author's abstract, IAB-Doku) ((en))

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Riley, Rebecca (2013): Modelling demand for low skilled/low paid labour. Exploring the employment trade-offs of a living wage. (NIESR discussion paper 404), London, 37 S.

Abstract

"This paper analyses labour demand for low skill/low pay labour in order to explore the potential employment trade-offs associated with moving to a Living Wage. Using industry sector panel data we model demand for labour classified into 5 groups defined by age and highest educational qualification. Low pay is most prevalent amongst the less skilled and the young. Amongst the 11 market sector industry groups we consider, the three sectors that would face the largest rise in their wage bill were all employers to sign up to the Living Wage are: Wholesale & Retail, Hotels & Catering; Other Community, Social & Personal Services; and less skill intensive manufacturing industries. Our calculations suggest that, conditional on the level of output and worker effort, these cost increases would reduce employers' demand for young low-skilled employees in the private sector by approximately 300,000. The analysis highlights the importance of allowing for labour substitution in considering the employment demand effects of exogenous shifts in wages. We find that in aggregate the reduction in conditional labour demand with the Living Wage is around 160,000; this is around half the reduction in the demand for young lower-skilled employees because employers substitute younger with more experienced workers. The number of employees who would see their earnings rise with a Living Wage far outweighs the estimated reduction in labour demand." (Author's abstract, IAB-Doku) ((en))

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Schmitt, John (2013): Why does the minimum wage have no discernible effect on employment? Washington, DC, 28 S.

Abstract

"The employment effect of the minimum wage is one of the most studied topics in all of economics. This report examines the most recent wave of this research - roughly since 2000 - to determine the best current estimates of the impact of increases in the minimum wage on the employment prospects of low-wage workers. The weight of that evidence points to little or no employment response to modest increases in the minimum wage." (Author's abstract, IAB-Doku) ((en))

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Schulten, Thorsten (2013): WSI-Mindestlohnbericht 2013. Anhaltend schwache Mindestlohnentwicklung in Europa. In: WSI-Mitteilungen, Jg. 66, H. 2, S. 126-132. DOI:10.5771/0342-300X-2013-2-126

Abstract

"Der WSI-Mindestlohnbericht 2013 gibt einen aktuellen Überblick über die gegenwärtige Mindestlohnpolitik in Europa und ausgewählten außereuropäischen Staaten. Unter Auswertung der WSI-Mindestlohndatenbank werden neueste Daten zur Höhe und Entwicklung gesetzlicher Mindestlöhne präsentiert. Im Jahr 2012 wurden die Mindestlöhne in vielen europäischen Ländern nur geringfügig angehoben oder sogar gänzlich eingefroren. In zahlreichen Ländern erlitten die Mindestlohnbezieher zum Teil deutliche Reallohnverluste. Betroffen sind insbesondere diejenigen Länder, die unter der Aufsicht der Europäischen Union und des Internationalem Währungsfonds stehen und die als Teil der ihnen auferlegten Austeritätsprogramme in der Regel eine äußerst restriktive (Mindest-)Lohnpolitik verfolgen müssen." (Autorenreferat, IAB-Doku)

Zitatform

Schuster, Thomas (2013): Mindestlohn. Beschäftigungsrisiken höher als behauptet. (IW policy paper 2013,19), Köln, 42 S.

Abstract

"Das Mindestlohn-Kompendium trägt alle wichtigen Informationen zusammen, die in der Mindestlohndebatte interessant sind. Zuerst werden die verschiedenen Arten von Mindestlöhnen dargestellt. Dann werden die Mindestlohnregelungen in Europa präsentiert. Neben den monatlichen Mindestlöhnen und den relativen Beträgen im Vergleich zum Durchschnittslohn gibt es auch eine Übersicht über die Mindeststundenlöhne. Anschließend werden alle gesetzlichen Mindestlohnregelungen in Deutschland besprochen. Die theoretische Analyse des Mindestlohns ergibt, dass er sich nur dann negativ auf den Arbeitsmarkt auswirkt, wenn er höher als der Gleichgewichtslohn ist. Empirische Analysen über den Mindestlohn in Deutschland ergeben, dass sich der Mindestlohn im ostdeutschen Bauhauptgewerbe und im gesamtdeutschen Dachdeckerhandwerk negativ auf die Beschäftigung ausgewirkt hat. Internationale Studien ergeben, dass in 56 Prozent der Studien der Mindestlohn einen negativen Effekt auf den Arbeitsmarkt hat. In nur 9 Prozent der Studien ist eine positive Wirkung festzustellen." (Autorenreferat, IAB-Doku)