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Adamopoulou, Effrosyni, Francesco Manaresi, Omar Rachedi & Emircan Yurdagul (2024): Minimum wages and insurance within the firm. (ZEW discussion paper 24-021), Mannheim, 66 S.

Abstract

"Minimum wages generate an asymmetric pass-through of firm shocks across workers. We establish this result leveraging employer-employee data on Italian metalmanufacturing firms, which face different wage floors that vary within occupations. In response to negative firm productivity shocks, workers close to the wage floors experience higher job separations but no wage loss. However, the wage of high-paid workers decreases, and more so in firms with higher incidence of minimum wages. A neoclassical model with complementarities across workers with different skills rationalizes these findings. Our results uncover a novel channel that tilts the welfare gains of minimum wages toward low-paid workers." (Author's abstract, IAB-Doku) ((en))

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Arabzadeh, Hamzeh, Almut Balleer, Britta Gehrke & Ahmet Ali Taskin (2024): Minimum wages, wage dispersion and financial constraints in firms. In: European Economic Review, Jg. 163, 2024-01-14. DOI:10.1016/j.euroecorev.2024.104678

Abstract

"This paper studies how minimum wages affect the wage distribution if firms face financial constraints. Using German employer-employee data and firm balance sheets, we document that the within-firm wage dispersion decreases more with higher minimum wages when firms are financially constrained. We introduce financial frictions into a search and matching labor market model with stochastic job matching, imperfect information, and endogenous effort. In line with the empirical literature, the model predicts that a higher minimum wage reduces hirings and separations. Firms become more selective such that their employment and wage dispersion fall. If effort increases strongly, firms may increase employment at the expense of higher wage dispersion. Financially constrained firms are more selective and reward effort less. As a result, within-firm wage dispersion and employment in these firms fall more with the minimum wage." (Author's abstract, IAB-Doku, © 2024 Elsevier) ((en))

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Bezooijen, Emiel van, Wiljan van den Berge & Anna Salomons (2024): The Young Bunch: Youth Minimum Wages and Labor Market Outcomes. In: ILR review, Jg. 77, H. 3, S. 428-460. DOI:10.1177/00197939241239317

Abstract

"The authors estimate the effects of an increase in the youth minimum wage in the Netherlands on low-paid workers’ employment and earnings, using a difference-in-differences approach with detailed administrative data. Findings show that the increase does not have a negative effect on the number of jobs or hours worked, hence raising overall earnings for affected workers. Further, the minimum wage increase has substantial spillover effects, accounting for close to 70% of the average wage increase experienced by workers. While employment grows in fixed-term and temporary help agency contracts, the authors do not find evidence of declines in employment in other types of work arrangements, nor of labor-labor substitution. Labor market outcomes evolve most favorably for full-time incumbent workers who are not enrolled in education and are thus less likely to be transient occupants of minimum wage jobs." (Author's abstract, IAB-Doku) ((en))

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Biewen, Martin & Pascal Erhardt (2024): Using Post-Regularization Distribution Regression to Measure the Effects of a Minimum Wage on Hourly Wages, Hours Worked and Monthly Earnings. (IZA discussion paper / Forschungsinstitut zur Zukunft der Arbeit 16894), Bonn, 19 S.

Abstract

"We evaluate the distributional effects of a minimum wage introduction based on a data set with a moderate sample size but a large number of potential covariates. Therefore, the selection of relevant control variables at each distributional threshold is crucial to test hypotheses about the impact of the treatment. To this end, we use the post-double selection logistic distribution regression approach proposed by Belloni et al. (2018a), which allows for uniformly valid inference about the target coefficients of our low-dimensional treatment variables across the entire outcome distribution. Our empirical results show that the minimum wage crowded out hourly wages below the minimum threshold, benefitted monthly wages in the lower middle but not the lowest part of the distribution, and did not significantly affect the distribution of hours worked." (Author's abstract, IAB-Doku) ((en))

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Giupponi, Giulia, Robert Joyce, Attila Lindner, Tom Waters, Thomas Wernham & Xiaowei Xu (2024): The Employment and Distributional Impacts of Nationwide Minimum Wage Changes. In: Journal of labor economics, Jg. 42, H. S1, S. S293-S333. DOI:10.1086/728471

Abstract

"We assess the impact of nationwide minimum wages on employment throughout the whole wage distribution by exploiting geographical variation in the level of wages. We find a substantial increase in wages at the bottom of the wage distribution, while we detect a small, statistically insignificant negative effect on employment. Combining the estimated change in the wage distribution with a tax and benefit microsimulation model, we show that the minimum wage generates considerable proportional income gains up to the middle of the household income distribution." (Author's abstract, IAB-Doku) ((en))

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Kunaschk, Max (2024): The effects of minimum wages on employment and Prices - Evidence from the hairdressing sector. In: Labour Economics online erschienen am 06.04.2024. DOI:10.1016/j.labeco.2024.102540

Abstract

"This paper provides comprehensive evidence on the labor and product market effects of a high-impact minimum wage introduction in the highly competitive hairdressing sector. Using detailed administrative data, I find negligible overall employment effects, even though the minimum wage substantially increased hourly wages. However, sub-group analyses reveal considerable heterogeneity in the estimated employment effects and suggest shifts away from marginal towards regular employment. Analyses of the price effects suggest that the reform increased output prices considerably, implying that consumers largely paid for the minimum wage." (Author's abstract, IAB-Doku, © Elsevier) ((en))

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Lübker, Malte & Thorsten Schulten (2024): WSI-Mindestlohnbericht 2024: Reale Zugewinne durch die Umsetzung der Europäischen Mindestlohnrichtlinie. (WSI-Report 93), Düsseldorf, 21 S.

Abstract

"In den meisten EU-Staaten kam es zum 1. Januar 2024 zu deutlichen Erhöhungen der Mindestlöhne. Diese reichten trotz anhaltend hoher Inflationsraten in der Mehrzahl der Mitgliedsländer aus, um die Kaufkraft des Mindestlohns zu erhalten oder sogar auszubauen. Begünstigt wurde die Mindestlohndynamik auch durch die im Herbst 2022 verabschiedete Europäische Mindestlohnrichtlinie. Viele Mitgliedsländer streben im Zuge der Umsetzung der EU-Richtlinie an, die dort verankerten Referenzwerte von 60 % des Medianlohns bzw. 50 % des Durchschnittslohns zu erreichen. Anders verlief die Entwicklung in Deutschland: Hier plädierte die Mindestlohnkommission gegen die Stimmen der Gewerkschaften nur für eine geringe Anhebung des Mindestlohns, die hinter die Preisentwicklung zurückfällt." (Textauszug, IAB-Doku)

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Ohlert, Clemens (2024): Gesetzlicher Mindestlohn: Auswirkungen auf Frauen und Männer. In: Wirtschaftsdienst, Jg. 104, H. 2, S. 117-122. DOI:10.2478/wd-2024-0035

Abstract

"Der Mindestlohn hat bei Frauen seit seiner Einführung zu stärkeren Anstiegen der durchschnittlichen Stundenlöhne und monatlichen Verdienste geführt als bei Männern. Die Auswirkungen des Mindestlohns auf die Stundenlöhne der vom Mindestlohn betroffenen Frauen und Männern fielen im Durchschnitt ähnlich hoch aus. Frauen sind jedoch häufiger im Mindestlohnbereich beschäftigt als Männer und profitieren somit häufiger von diesem. Ergebnisse zu geschlechterspezifischen Reduzierungen der Arbeitszeit aufgrund des Mindestlohns fallen unterschiedlich aus. Weder bei Frauen, noch bei Männern kam es zu erheblichen Beschäftigungseffekten des Mindestlohns. Der Mindestlohn trägt somit zur Reduzierung der Entgeltungleichheit nach Geschlecht bei." (Autorenreferat, IAB-Doku)

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Ohlert, Clemens (2024): Minimum Wage Effects on Gender Gaps in Working Hours and Earnings in Germany. (ECINEQ working paper series / Society for the Study of Economic Inequality 2024-663), Verona, 26 S.

Abstract

"This paper investigates whether the introduction of a statutory minimum wage in Germany has led to a reduction in gender gaps in hourly wages, working hours and monthly earnings. Using the 2014 Structure of Earnings Survey and the 2015 Earnings Survey, a difference-in-differences approach was applied at the establishment level. The results show a reduction of the gender pay gap in establishments of up to 3.6 percentage points due to the introduction of the minimum wage. While the effects on hourly wages of women and men in low-wage jobs were the same on average, women are more often affected by the minimum wage and therefore benefit more often from it. The gender time gap in establishments decreased by about 2.4 percentage points on average and by about 3.9 percentage points among low wage workers. The minimum wage led to a reduction in the average gender gap in gross monthly earnings in establishments of up to 6.1 percentage points and by up to 4.6 percentage points among low-wage employees." (Author's abstract, IAB-Doku) ((en))

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Arabzadeh, Hamzeh, Almut Balleer, Britta Gehrke & Ahmet Ali Taskin (2023): Minimum Wages, Wage Dispersion and Financial Constraints in Firms. (IZA discussion paper / Forschungsinstitut zur Zukunft der Arbeit 16455), Bonn, 56 S.

Abstract

"This paper studies how minimum wages affect the wage distribution if firms face financial constraints. Using German employer-employee data and firm balance sheets, we document that the within-firm wage dispersion decreases more with higher minimum wages when firms are financially constrained. We introduce financial frictions into a search and matching labor market model with stochastic job matching, imperfect information, and endogenous effort. In line with the empirical literature, the model predicts that a higher minimum wage reduces hirings and separations. Firms become more selective such that their employment and wage dispersion fall. If effort increases strongly, firms may increase employment at the expense of higher wage dispersion. Financially constrained firms are more selective and reward effort less. As a result, within-firm wage dispersion and employment in these firms fall more with the minimum wage." (Author's abstract, IAB-Doku) ((en))

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Bossler, Mario & Thorsten Schank (2023): Wage inequality in Germany after the minimum wage introduction. In: Journal of labor economics, Jg. 41, H. 3, S. 813-857., 2022-03-17. DOI:10.1086/720391

Abstract

"Monthly wage inequality in Germany continued to increase in the early 2000s, which is mainly explained by a rising part-time employment share. After 2010, inequality returned to the level of 2000. About half of the recent decrease is due to the introduction of the national minimum wage in 2015. While employment effects of the minimum wage are negligible, we find strong wage increases among the existing workforce. The minimum wage lowered wage inequality within eastern and western Germany, but also led to a convergence of the east-west wage differential. The increased labor incomes were not offset by decreasing social benefits." (Author's abstract, © University of Chicago Press) ((en))

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Brunner, Laura, Nina Gloger & Christian Hohendanner (2023): Sonderauswertung zur Situation der vom Mindestlohn betroffenen Betriebe im Jahr 2022 auf Basis des IAB-Betriebspanels. Abschlussbericht. Studie im Auftrag der Mindestlohnkommission. Nürnberg, 26 S.

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Börschlein, Erik-Benjamin, Mario Bossler, Bernd Fitzenberger & Martin Popp (2023): Mit der Erhöhung auf 12 Euro liegt die Entwicklung des gesetzlichen Mindestlohns über der Tariflohn- und Preisentwicklung. In: IAB-Forum H. 11.12.2023 Nürnberg. DOI:10.48720/IAB.FOO.20231211.01

Abstract

"Zum 1. Oktober 2022 wurde der gesetzliche Mindestlohn außerplanmäßig von 10,45 Euro auf 12 Euro pro Stunde erhöht. Er liegt seither deutlich über der Entwicklung der Tariflöhne. Obwohl die hohe Inflation der vergangenen beiden Jahre die Kaufkraft des Mindestlohns geschmälert hat, liegt er preisbereinigt noch immer 11,6 Prozent über dem Niveau von 2015. Die durchschnittlichen Tariflöhne hingegen haben seitdem um 3,8 Prozent an realem Wert verloren." (Autorenreferat, IAB-Doku)

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Caliendo, Marco, Alexandra Fedorets, Malte Preuß, Carsten Schröder & Linda Wittbrodt (2023): The short- and medium-term distributional effects of the German minimum wage reform. In: Empirical economics, Jg. 64, H. 3, S. 1149-1175. DOI:10.1007/s00181-022-02288-4

Abstract

"This study quantifies the distributional effects of the minimum wage introduced in Germany in 2015. Using detailed Socio-Economic Panel survey data, we assess changes in the hourly wages, working hours, and monthly wages of employees who were entitled to be paid the minimum wage. We employ a difference-in-differences analysis, exploiting regional variation in the “bite” of the minimum wage. At the bottom of the hourly wage distribution, we document wage growth of 9% in the short term and 21% in the medium term. At the same time, we find a reduction in working hours, such that the increase in hourly wages does not lead to a subortionate increase in monthly wages. We conclude that working hours adjustments play an important role in the distributional effects of minimum wages." (Author's abstract, IAB-Doku, © Springer-Verlag) ((en))

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Di Nola, Alessandro, Luke Haywood & Haomin Wang (2023): Gendered effects of minimum wage. (Working Paper Series / Universität Konstanz, Cluster of Excellence 'The Politics of Inequality' 14), Konstanz, 52 S.

Abstract

"Women are more likely to work in jobs with low hours than men. Low-hour jobs are associated with lower hourly wages and are more likely impacted by minimum wages that set a floor on hourly wages. We document that the first German minimum wage significantly increased women's transition towards jobs with higher weekly hours. We construct and estimate an equilibrium search model with demographic and firm productivity heterogeneity. The model replicates observed gender gaps in employment, hours and wage and the positive relationship between hours and hourly wages. We implement the minimum wage in our model with a penalty to address non-compliance. Based on our model, the minimum wage primarily reduces the gender income gap through the gender wage gap. At its 2022 level, the German minimum wage reduces the gender employment and hours gap due to an upward reallocation effect, resulting in women's increased participation in higher-hour jobs with lower separation rates. The upward reallocation effect is the strongest for women with children and varies by marital state and spousal income. While the minimum wage only modestly discourages firms from posting jobs, it shifts job offers toward full-time positions." (Author's abstract, IAB-Doku) ((en))

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Dütsch, Matthias, Orkun Altun, Luisa Grundmann & Ralf Himmelreicher (2023): What Does the German Minimum Wage Do? The Impact of the Introduction of the Statutory Minimum Wage on the Composition of Low- and Minimum-Wage Labour. In: Jahrbücher für Nationalökonomie und Statistik, Jg. 243, H. 3-4, S. 355-396. DOI:10.1515/jbnst-2022-0070

Abstract

"In this article, we examine structural changes in minimum wage and low wage labor following the introduction and first increase of the German minimum wage. Changes in the impact that workers face earning gross hourly wages below the minimum-wage or low-wage thresholds are identified by comparing individual, company and sectoral characteristics based on the Structure of Earnings Surveys (SESs) 2014 and 2018. The SES is a mandatory survey of companies that provides information on wages and working hours for approximately 1 million jobs and nearly 70,000 companies across all industries. Using these rich data, we present the first systematic analysis of how structural changes in individual-, company-, and industry-level determinants affect minimum- and low-wage workers. Using descriptive analysis, we first summarize the changing pattern in jobs, companies, and industries after the introduction of minimum wage. Second, we use random intercept-only models to estimate the explanatory power at the individual, company, and industry levels in 2014 and 2018. Third, we perform logistic and linear regression estimations to assess the changing trends in having a minimum- or low-wage job and the distance between a worker’s actual earnings and the minimum- and low-wage thresholds. We conclude that the minimum wage had an elevator effect on minimum wage labor. However, compositional effects regarding the minimum-wage and low-wage workforce were evident in terms of individual and company factors. There was a selective redistribution of minimum wage employees into slightly higher wage ranges. Furthermore, convergence seems to have occurred predominantly among sectors, as their explanatory power for lower wages declined." (Author's abstract, IAB-Doku, © De Gruyter) ((en))

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Friedrich, Martin, Elke Jahn, Michael Oberfichtner, Johannes Weiß, Alan Manning & David Card; Alan Manning & David Card (sonst. bet. Pers.) (2023): Unvollkommener Wettbewerb auf dem Arbeitsmarkt: Ursachen, Ausmaß und Folgen (Podium). In: IAB-Forum H. 24.08.2023 Nürnberg. DOI:10.48720/IAB.FOO.20230824.01

Abstract

"Bei vollkommenem Wettbewerb auf dem Arbeitsmarkt, so die klassische ökonomische Theorie, verliert ein Arbeitgeber, der seine Löhne auch nur minimal senkt, sämtliche Beschäftigten. In der Realität ist dies jedoch nur höchst selten der Fall. Denn auf Arbeitsmärkten herrscht in aller Regel nur unvollkommener Wettbewerb. Arbeitgeber verfügen demnach über eine gewisse Marktmacht und können diese nutzen, um niedrigere Löhne zu zahlen, als sie es bei vollkommenem Wettbewerb tun müssten." (Autorenreferat, IAB-Doku)

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Fulda, Carolin, Hagen Lesch, Christoph Schröder & Sandra Vogel (2023): Einflüsse des Mindestlohns auf das Tarifgeschehen: Ergebnisse ausgewählter Niedriglohnbranchen. (IW-Analysen / Institut der Deutschen Wirtschaft Köln 154), Köln: Institut der deutschen Wirtschaft (IW) / German Economic Institute, 65 S.

Abstract

"Die vorliegende Analyse untersucht, welche Zusammenhänge zwischen dem Tarifgeschehen sowie den seit Juni 2020 von der Mindestlohnkommission beschlossenen Anpassungen des gesetzlichen Mindestlohns bestehen und welchen Einfluss der politische Eingriff in den Anpassungsmechanismus im Jahr 2022 hatte. Zu den untersuchten Branchen gehören die Landwirtschaft, die Fleischwirtschaft, das Bäckerhandwerk, der Einzelhandel, die Floristik, das Gastgewerbe, die Systemgastronomie, die privaten Wach- und Sicherheitsdienste, das Gebäudereiniger- und das Friseurhandwerk, jeweils mit Fokus auf die Tarifgebiete Nordrhein-Westfalen und Berlin-Brandenburg. Die Verbindung quantitativer und qualitativer Methoden zeigt, dass das Tarifgeschehen vor allem durch den Beschluss der Bundesregierung beeinflusst wurde, den Mindestlohn ab Oktober 2022 auf 12 Euro je Stunde zu erhöhen. Viele Tariflohngruppen drohten durch den politischen Beschluss verdrängt zu werden. In den meisten der untersuchten Branchen gelang es, die Tarifstrukturen anzupassen. Auslaufende Tarifverträge wurden zumeist regulär erneuert, teilweise wurden auch Tarifverhandlungen vorgezogen. Mit dem jüngsten Anpassungsbeschluss der Mindestlohnkommission vom Juni 2023 ist die Verlässlichkeit in die Mindestlohnentwicklung zurückgekehrt. Das erleichtert es den Tarifvertragsparteien, mit den Mindestlohnerhöhungen Schritt zu halten und die zum Teil gestauchten Tariflohnstrukturen schrittweise wieder auszudifferenzieren." (Autorenreferat, IAB-Doku)

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Haapanala, Henri, Ive Marx & Zachary Parolin (2023): Decent wage floors in Europe: Does the minimum wage directive get it right? In: Journal of European Social Policy, Jg. 33, H. 4, S. 421-435. DOI:10.1177/09589287231176977

Abstract

"The Directive on Adequate Minimum Wages represents a watershed initiative adding substance to the EU’s social dimension. It contains two ambitious objectives: establishing the minimum level of statutory minimum wages at 60% of the gross median wage, and increasing collective bargaining coverage (CBC) to at least 80% of workers. In this article, we assess how statutory minimum wages and collective bargaining coverage are associated with the likelihood of low pay. Using a time series cross-section of EU-SILC for income years 2004–2019, we identify and assess the absolute and relative size of ‘effective wage floors’ for full-time employees in 30 countries. We specify multilevel, random effects within-between regression models to assess the individual and joint associations of SMW and collective bargaining coverage with wage floors. Our results indicate that SMWs and CBC both have distinct roles in establishing the effective wage floor. First, higher collective bargaining coverage is on average associated with a lower share of workers earning below 60% gross median wages. Second, higher SMWs are strongly associated with higher effective wage floors. Third, both collective bargaining coverage and union density are strongly associated with higher wage floors." (Author's abstract, IAB-Doku) ((en))

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Hälbig, Mirja, Matthias Mertens & Steffen Müller (2023): Minimum Wages, Productivity, and Reallocation. (IWH-Diskussionspapiere / Leibniz-Institut für Wirtschaftsforschung Halle 2023,8), Halle, 69 S.

Abstract

"We study the productivity effect of the German national minimum wage by applying administrative firm data. At the firm level, we confirm positive effects on wages and negative employment effects and document higher productivity even net of output price increases. We find higher wages but no employment effects at the level of aggregate industry × region cells. The minimum wage increased aggregate productivity in manufacturing. We do not find that employment reallocation across firms contributed to these aggregate productivity gains, nor do we find improvements in allocative efficiency. Instead, the productivity gains from the minimum wage result from within-firm productivity improvements only." (Author's abstract, IAB-Doku) ((en))