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Albagli, Pinjas, Rui Costa & Stephen Machin (2025): Minimum wage effects: adjustment through labour market dynamics and alternative work arrangements. A report for the Low Pay Commission. (CEP report 49), London: Centre for Economic Performance, LSE, 96 S.

Abstract

"This report investigates the UK's 2016 National Living Wage (NLW) introduction, focusing on firm adjustment through labour market transitions and job contract amendments. The NLW boosted worker wages, and whilst there was no change in total employment, firms adjusted through changes in employment composition and by altering employment contracts. The NLW spurred increased transitions from temporary to permanent roles, reduced underemployment, and shifted workers away from non-standard arrangements like part-time roles. However, a modest rise in zero-hour contracts among exposed workers reflects the nuanced nature of these adjustments. These contract changes, and shifts in composition and transition dynamics, provide insights into ways in which employers adjustment to cost shocks induced by minimum wage increases, and how at the same time they maintain employment stability and reshape within-firm job and career structures." (Author's abstract, IAB-Doku) ((en))

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Albertini, Julien, Arthur Poirier & Anthony Terriau (2025): Payroll Tax Reductions on Low Wages and Minimum Wage in France. (Working paper / GATE Lyon Saint-Étienne 202501), Lyon ; Saint-Étienne, 44 S.

Abstract

"Introduced in France in the 1990s to reduce the cost of low-skilled labor, payroll tax reductions on low wages were later expanded and extended to higher wages. This study evaluates the impact of the current payroll tax schedule on employment, fiscal surplus, and welfare. We develop a life-cycle matching model in which workers are heterogeneous in terms of age, education, human capital, family status, hours worked and idiosyncratic productivity, and where search effort, hiring and separations are endogenous. Accounting for interactions with the socio-fiscal system, we demonstrate that reducing payroll tax cuts for low wages would result in declines in both employment and fiscal surplus. Furthermore, we show that increasing the minimum wage would significantly reduce employment and fiscal surplus, with the magnitude of the effect depending on whether the payroll tax schedule and other socio-fiscal measures are indexed to the minimum wage. Lastly, we identify the optimal payroll tax schedule, revealing that employment, fiscal surplus, and welfare can all be improved by increasing payroll tax reductions for wages near the minimum wage while reducing them for wages exceeding twice the minimum wage." (Author's abstract, IAB-Doku) ((en))

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Baumann, Arne (2025): What Explains Differences in Minimum Wage Growth Between EU Member States? In: Jahrbücher für Nationalökonomie und Statistik, Jg. 245, H. 1/2, S. 7-44. DOI:10.1515/jbnst-2023-0039

Abstract

"There are considerable differences in minimum wage growth between EU member states with national minimum wages. Potential sources for these differences are discrepancies in economic fundamentals and institutional differences in how minimum wages are adjusted. Using a novel dataset based on macroeconomic data, institutional information on minimum wage setting and data on economic policy orientation and elections, the article tests whether growth differences in the minimum wage of 21 EU member states during the time period 2000 to 2020 can be explained by a catch-up dynamic in new EU member states, by different growth models of EU member states or by differences in the actors that are responsible for the adjustment of minimum wages. The results show that across the entire sample and irrespective of actors, minimum wage growth follows consumer price inflation and wage growth most closely. Higher than average minimum wage growth rates in EU member states stem from overshooting inflation during the period of EU accession, reducing wage inequality and increasing the Kaitz index. Actors also mattered for minimum wage growth. Adjustments by social partner consensus led to higher minimum wage growth than the benchmark of indexed minimum wages, introducing a distributive element to minimum wage adjustments." (Author's abstract, IAB-Doku) ((en))

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Berger, David, Kyle Herkenhoff & Simon Mongey (2025): Minimum Wages, Efficiency, and Welfare. In: Econometrica, Jg. 93, H. 1, S. 265-301. DOI:10.3982/ecta21466

Abstract

"Many argue that minimum wages can prevent efficiency losses from monopsony power. We assess this argument in a general equilibrium model of oligopsonistic labor markets with heterogeneous workers and firms. We decompose welfare gains into an efficiency component that captures reductions in monopsony power and a redistributive component that captures the way minimum wages shift resources across people. The minimum wage that maximizes the efficiency component of welfare lies below $8.00 and yields gains worth less than 0.2% of lifetime consumption. When we add back in Utilitarian redistributive motives, the optimal minimum wage is $11 and redistribution accounts for 102.5% of the resulting welfare gains, implying offsetting efficiency losses of −2.5%. The reason a minimum wage struggles to deliver efficiency gains is that with realistic firm productivity dispersion, a minimum wage that eliminates monopsony power at one firm causes severe rationing at another. These results hold under an EITC and progressive labor income taxes calibrated to the U.S. economy." (Author's abstract, IAB-Doku) ((en))

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Biewen, Martin & Pascal Erhardt (2025): Using post-regularization distribution regression to measure the effects of a minimum wage on hourly wages, hours worked and monthly earnings. In: The econometrics journal. DOI:10.1093/ectj/utaf014

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. In this context, the selection of relevant control variables at each distributional threshold is crucial to test hypotheses about the impact of the continuous treatment variable. 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 replaced hourly wages below the minimum threshold, increased monthly earnings in the lower-middle segment but not at the very bottom of the distribution, and did not significantly affect the distribution of working hours." (Author's abstract, IAB-Doku) ((en))

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Burkhauser, Richard V., Drew McNichols & Joseph J. Sabia (2025): Minimum Wages and Poverty: New Evidence from Dynamic Difference-in-Differences Estimates. In: The Review of Economics and Statistics, S. 1-53. DOI:10.1162/rest_a_01590

Abstract

"This study re-examines Dube (2019), which finds large and statistically significant poverty-reducing effects of the minimum wage. We show that his estimated elasticities are fragile and sensitive to (1) time period under study, (2) choice of macroeconomic controls, (3) limiting counterfactuals to geographically proximate states (“close controls”), which poorly match treatment states' pre-treatment poverty trends, and (4) accounting for potential bias caused by heterogeneous and dynamic treatment effects. Using data spanning nearly four decades from the March Current Population Survey and a dynamic difference-in-differences (DiD) approach, we find that a 10 percent increase in the minimum wage is associated with a (statistically insignificant) 0.17 percent increase in the probability of longer-run poverty among all persons. With 95% confidence, we can rule out long-run poverty elasticities with respect to the minimum wage of less than -0.129. Our null results persist across a variety of DiD estimation strategies, including two-way fixed effects, stacked DiD, Callaway and Sant'Anna, and synthetic DiD. We conclude that, to date, the preponderance of evidence suggests that minimum wage increases are an ineffective policy strategy for alleviating poverty." (Author's abstract, IAB-Doku, © MIT Press Journals) ((en))

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Busch, Anne, Fabienne-Agnes Baumann, Benedikt Krieger, Kerstin Goluchowicz & Sebastian Krusee (2025): Analysepotenziale von OnlineStellenanzeigen und Methoden Maschinellen Lernens am Beispiel der Mindestlohnforschung. Hat der Mindestlohn die Nachfrage von Kompetenzen durch Arbeitgeber verändert? (iit Perspektive / Institut für Innovation und Technik 80), Berlin, 17 S. DOI:10.23776/2025_09

Abstract

"Diese iit-perspektive beleuchtet das Potenzial innovativer Datenzugänge (Online-Stellenanzeigen) und Analysemethoden (Methoden des maschinellen Lernens) für sozialwissenschaftliche Fragestellungen am Beispiel der Mindestlohnforschung. So ist es mit Online-Stellenanzeigen als Datengrundlage beispielsweise möglich zu untersuchen, inwieweit die Einführung bzw. Erhöhung des Mindestlohns die von Arbeitgebern geforderten beruflichen Kompetenzen verändert hat." (Autorenreferat, IAB-Doku)

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Chan, Marc K. & Akbar Zamanzadeh (2025): Minimum wage and employment in the U.S.: an application of Bayesian quantile kink regression. In: Econometric Reviews, Jg. 44, H. 6, S. 673-695. DOI:10.1080/07474938.2025.2451339

Abstract

"We examine whether the employment effects of minimum wage depend on unknown tipping points in the labor market. We apply a continuous threshold regression model—regression kink with unknown thresholds—to U.S. state-level panel data in 1993–2016 to estimate the tipping point and quantile employment effects. Overall, we find that the marginal effect is near-zero or mildly negative below the tipping point, and it is considerably more negative above it. The tipping occurs at 50–55% of the state’s median wage among women and 40–45% among men. Simulations of minimum wage reforms reveal nonlinear and asymmetric employment effects." (Author's abstract, IAB-Doku) ((en))

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Clemens, Jeffrey & Michael R. Strain (2025): The Heterogeneous Effects of Large and Small Minimum Wage Changes on Hours Worked: Evidence Using a Partially Pre-Committed Analysis Plan. (IZA discussion paper / Forschungsinstitut zur Zukunft der Arbeit 17913), Bonn, 69 S.

Abstract

"In a study of recent minimum wage changes (Clemens and Strain, forthcoming), we demonstrate how analyses of longer-run impacts of policy interventions can be pre-specified as extensions to very short-run analyses. This paper uses this novel methodology to study the effects of minimum wage increases on hours worked. Analyzing CPS and ACS data with the empirical specifications from our partially pre-committed analysis plan, we estimate that relatively large minimum wage increases reduced usual hours worked per week among individuals with low levels of experience and education by just under one hour per week during the decade prior to the onset of the Covid-19 pandemic. Our estimates of the effects of relatively small minimum wage increases vary across data sets and specifications but are, on average, both economically and statistically indistinguishable from zero. We estimate that the elasticity of hours worked with respect to the minimum wage is substantially more negative for large minimum wage increases than for small increases." (Author's abstract, IAB-Doku) ((en))

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Clemens, Jeffrey & Michael Strain (2025): The Heterogeneous Effects of Large and Small Minimum Wage Changes: Evidence Using a Partially Pre-Committed Analysis Plan. In: Journal of labor economics. DOI:10.1086/736552

Abstract

"This paper advances the use of partially pre-committed analysis plans in non-experimental research settings. In a study of recent minimum wage changes, we demonstrate how analyses of longer-run impacts of policy interventions can be pre-specified as extensions to very short-run analyses. Further, our pre-analysis plan includes comparisons of the effects of large vs.small minimum wage increases, which is a theoretically motivated dimension of heterogeneity. We discuss how these use cases harness the strengths of pre-analysis planswhile mitigating their weaknesses. This project’s initial analyses explored CPS and ACS datafrom 2011 through 2015. Alongside these analyses, we pre-committed to analyses in corporating CPS and ACS data extending through 2019. Averaging across the specifications in our pre-analysis plan, we estimate that relatively large minimum wage increases reduced employment rates among individuals with low levels of experience and education by just over 2 and a half percentage points during the decade prior to the onset ofthe Covid-19 pandemic. Our estimates of the effects of relatively small minimum wage increases vary across data sets and specifications but are, on average, both economically andstatistically indistinguishable from zero. We estimate that the elasticity of employment with respect to the minimum wage is substantially more negative for large minimum wage increases than for small increases." (Author's abstract, IAB-Doku) ((en))

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Clemens, Jeffrey, Melissa D. Gentry & Jonathan Meer (2025): Divergent Paths: Differential Impacts of Minimum Wage Increases on Individuals with Disabilities. (NBER working paper / National Bureau of Economic Research 33437), Cambridge, Mass, 39 S.

Abstract

"We analyze the differential effects of minimum wage increases on individuals with disabilities using data from the American Community Survey and leveraging state-level minimum wage variation during the 2010s. We find that large minimum wage increases significantly reduce employment and labor force participation for individuals of all working ages with severe disabilities. These declines are accompanied by a downward shift in the wage distribution and an increase in public assistance receipt. By contrast, we find no employment effects for all but young individuals with either non-severe disabilities or no disabilities. Our findings highlight important heterogeneities in minimum wage impacts, raising concerns about labor market policies' unintended consequences for populations on the margins of the labor force." (Author's abstract, IAB-Doku) ((en))

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Clemens, Jeffrey & Michael Strain (2025): The eterogeneous Effects of Large and Small Minimum Wage Changes: Evidence Using a Partially Pre-Committed Analysis Plan. In: Journal of labor economics. DOI:10.1086/736552

Abstract

"This paper advances the use of partially pre-committed analysis plans in non-experimental research settings. In a study of recent minimum wage changes, we demonstrate how analyses of longer-run impacts of policy interventions can be pre-specified as extensions to very short-run analyses. Further, our pre-analysis plan includes comparisons of the effects of large vs.small minimum wage increases, which is a theoretically motivated dimension ofheterogeneity. We discuss how these use cases harness the strengths of pre-analysis planswhile mitigating their weaknesses. This project’s initial analyses explored CPS and ACS datafrom 2011 through 2015. Alongside these analyses, we pre-committed to analysesincorporating CPS and ACS data extending through 2019. Averaging across thespecifications in our pre-analysis plan, we estimate that relatively large minimum wage increases reduced employment rates among individuals with low levels of experience andeducation by just over 2 and a half percentage points during the decade prior to the onset ofthe Covid-19 pandemic. Our estimates of the effects of relatively small minimum wage increases vary across data sets and specifications but are, on average, both economically and statistically indistinguishable from zero. We estimate that the elasticity of employment with respect to the minimum wage is substantially more negative for large minimum wage increases than for small increases." (Author's abstract, IAB-Doku) ((en))

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Doucouliagos, Hristos & Katarina Zigova (2025): Minimum Wages and Human Capital Investment: A Meta‐Regression Analysis. In: BJIR, S. 1-20. DOI:10.1111/bjir.12881

Abstract

"We apply meta-regression analysis to assess the effect of the minimum wage on two types of human capital, formal education enrolment and on-the-job training, using 892 reported estimates of these effects. On average, raising the minimum wage reduces enrolment in all countries assessed. The minimum wage has a somewhat moderate positive effect on training in the United States and no significant training effect elsewhere. There is no publication bias in the formal education and modest bias in the training literature. Heterogeneity among reported estimates is primarily driven by data differences, alternative specifications and measures of the relevant variables." (Author's abstract, IAB-Doku, Published by arrangement with John Wiley & Sons) ((en))

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Dütsch, Matthias, Clemens Ohlert & Arne Baumann (2025): The Minimum Wage in Germany: Institutional Setting and a Systematic Review of Key Findings. In: Jahrbücher für Nationalökonomie und Statistik, Jg. 245, H. 1-2, S. 113-151. DOI:10.1515/jbnst-2023-0038

Abstract

"The introduction of a statutory minimum wage in Germany in 2015 aimed at improving the welfare of low-wage workers but was also accompanied by concerns about distortions in Europe’s largest economy. This paper provides a comprehensive survey of results from the evaluation of the German minimum wage by compiling recent descriptive evidence and a systematic literature review on causal effects through 2022. On 1 October 2022, the minimum wage was raised legislatively by 15 percent to 12 euros per hour, which affected approximately 5.8 million employees and 23 percent of companies. The war in Ukraine and the coronavirus pandemic hit minimum wage workers and minimum wage firms harder than the rest of the economy. The minimum wage thus far had the strongest causal effects directly after its introduction. Hourly wages increased, while working hours decreased, resulting in mixed effects on monthly wages. Overall employment fell slightly, with a decline in marginal employment in particular. Companies’ wage costs increased, and as productivity did not change, profits declined." (Author's abstract, IAB-Doku, © De Gruyter) ((en))

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Dütsch, Matthias, Monika Senghaas, Gesine Stephan & Olaf Struck (2025): Does organizational context matter? An examination of the factors influencing employees’ judgments of minimum wage increases. In: Journal for labour market research, Jg. 59, 2025-02-10. DOI:10.1186/s12651-025-00392-3

Abstract

"This article presents novel findings on company factors that determine judgments regarding the fairness of minimum wage increases. Drawing on minimum wage and organizational justice research, we conducted a factorial survey among German employees. It seems that the internal wage structure plays a crucial role because raising only the pay of minimum wage workers and not that of other employees causes a minimum wage increase to be rated as less fair. While a hiring freeze does not negatively influence fairness judgments, layoffs do. Finally, if a minimum wage increase adversely affects a company’s economic situation, respondents assess it as less fair." (Author's abstract, IAB-Doku) ((en))

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Fahn, Matthias & Takeshi Murooka (2025): Informal Incentives and Labour Markets. In: The Economic Journal, Jg. 135, H. 665, S. 144-179. DOI:10.1093/ej/ueae063

Abstract

"This paper investigates how labor-market tightness affects market outcomes if firms use informal, self-enforcing, agreements to motivate workers. We characterize profit-maximising equilibria and show that an increase in the supply of homogeneous workers can increase wages. Moreover, even though all workers are identical in terms of skills or productivity, profit-maximising discrimination equilibria exist. There, a group of majority workers is paid higher wages than a group of minority workers, who may even be completely excluded. Minimum wages can reduce such discrimination and increase employment. We discuss how these results relate to empirical evidence on downward wage rigidity, immigration, the gender pay gap, and credentialism." (Author's abstract, IAB-Doku) ((en))

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Heise, Arne (2025): "Und ewig grüßt das Murmeltier": Mindestlohnforschung im Denkstilzwang. (Discussion papers / Zentrum für Ökonomische und Soziologische Studien 116), Hamburg, 23 S.

Abstract

"Vor Einführung eines flächendeckenden Mindestlohns in Deutschland im Jahr 2015 war sich die Arbeitsmarktökonomik weitgehend darin einig, dass dieses 'soziale Experiment' mit erheblichen Arbeitsplatzverlusten bezahlt werden müsste. Die Begleitforschung zur Mindestlohneinführung konnte dann aber die prognostizierten Beschäftigungsverluste nicht nachweisen und musste auch für Deutschland - wie überall, wo Mindestlöhne existieren und deren Effekte erforscht werden - die 'Flüchtigkeit der Beschäftigungseffekt' zugeben. In diesem Beitrag wird die Diskussion um die Einführung des Mindestlohns nachgezeichnet und die Reaktion der Wissenschaftlergemeinschaft auf die Abweichung der tatsächlichen Beschäftigungsentwicklung von den modellgestützten Prognosen - was wissenschaftstheoretisch als 'Anomalie' oder 'Krise' verstanden werden kann - auf der Grundlage der Fleckschen Denkstil-Theorie analysiert. Dazu werden 2 Phasen - die Phase der Einführung des Mindestlohns und die Phase der drastischen Erhöhung des Mindestlohns im Jahr 2022 - unterschieden, um einerseits Lernprozesse, andererseits aber auch die Resilienz eines herrschenden Paradigmas untersuchen zu können." (Autorenreferat, IAB-Doku)

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Kim, Jiyoon, Michael Levere & Ellen Magenheim (2025): Do minimum wage increases induce changes in work behavior for people with disabilities? Evidence from the AbilityOne program. In: Labour Economics, Jg. 92. DOI:10.1016/j.labeco.2024.102663

Abstract

"We provide the first evidence on the effects of minimum wage increases on labor market outcomes for people with disabilities. We use a novel dataset consisting of quarterly data on employment, earnings, and hours for workers at nonprofit firms that participate in the federal AbilityOne program. The nonprofits in this program are offered advantages in government contracting, though must primarily employ workers with disabilities. Using recent local variation in minimum wage changes, we find that increasing the minimum wage does not affect employment outcomes for workers with disabilities in this specific context, with precisely estimated null effects. However, these nonprofits respond along non-employment related margins after relatively large minimum wage increases." (Author's abstract, IAB-Doku, © 2024 Elsevier B.V. All rights are reserved, including those for text and data mining, AI training, and similar technologies.) ((en))

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Kim, Jung Hyun, Marc Suhrcke & Anja K. Leist (2025): The unintended effects of a large minimum wage increase on health: Evidence from South Korea. In: Social Science & Medicine, Jg. 365. DOI:10.1016/j.socscimed.2024.117626

Abstract

"The 2018 minimum wage increase in South Korea was a major policy change that impacted employment and labour productivity, but its effects on health have not yet been explored. The minimum wage was increased by 16.4% in January 2018, marking the largest increase over two decades and a substantial increase by international standards. While this policy change was a promise of the then-new government, the magnitude of its increase was unexpected. Using a difference-in-differences design with data from the 2016 and 2018 Korean Longitudinal Study on Aging, this study focuses on individuals targeted by the minimum wage policy, particularly older adults earning the minimum wage. Unexpectedly, our results indicate a statistically significant decrease in cognitive function within the targeted group, following the minimum wage hike. However, we did not observe any significant changes in self-reported health. Importantly, for the period 2014 and 2016, when the minimum wage increase was relatively modest, we found positive effects on cognitive health and no negative effects on self-reported health, suggesting that negative effects on cognition emerged only with the large minimum wage increase in 2018. These perhaps unexpected findings may be explained by a significant reduction in the working hours of the targeted group." (Author's abstract, IAB-Doku, © 2024 TheAuthors. Published by Elsevier Ltd.) ((en))

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Kozák, Michal & Georg Picot (2025): The politics of the minimum wage: Explaining introduction and levels. In: BJIR, Jg. 63, H. 1, S. 161-179. DOI:10.1111/bjir.12836

Abstract

"There is much economics research on the effects of minimum wages, but little research on their politics. Yet, ever more advanced capitalist democracies have introduced minimum wages, and the setting of minimum wage levels has become increasingly politicized. This article is the first comprehensive study of the politics of the minimum wage: We analyse the determinants of adopting minimum wages as well as what explains variation in their levels over time, based on a dataset of 33 OECD countries from 1960 to 2017. We find that the decline in collective bargaining is the main driving force behind the introduction of ever more minimum wages. At the same time, left-wing parties in government are most likely to adopt a minimum wage when bargaining coverage is low. Left governments are also associated with higher minimum wages, especially when the government has full control over level-setting." (Author's abstract, IAB-Doku, Published by arrangement with John Wiley & Sons) ((en))

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Lesch, Hagen & Christoph Schröder (2025): Regelbasierte statt politische Mindestlohnanpassung. Schriftliche Stellungnahme zur fünften Anhörung zu den Auswirkungen des gesetzlichen Mindestlohns. (IW-Report / Institut der Deutschen Wirtschaft Köln 2025,10), Köln, 18 S.

Abstract

"Der gesetzliche Mindestlohn wurde bis einschließlich Juli 2022 durch die Mindestlohnkommission gemäß § 9 Abs. 2 Satz 2 Mindestlohngesetz (MiLoG) und gemäß § 3 Abs. 1 Satz 2 der Geschäftsordnung der Mindestlohnkommission (GO-MLK) vom 27. Januar 2016 nachlaufend an die Tariflohnentwicklung angepasst." (Autorenreferat, IAB-Doku)

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Lübker, Malte, Thorsten Schulten & Alexander Herzog-Stein (2025): 10 Jahre Mindestlohn: Bilanz und Ausblick. Gemeinsame Stellungnahme von WSI und IMK anlässlich der schriftlichen Anhörung der Mindestlohnkommission 2025. (WSI Policy Brief / Wirtschafts- und Sozialwissenschaftliches Institut 88), Düsseldorf, 42 S.

Abstract

"In der folgenden Stellungnahme soll die Entwicklung des Mindestlohns im Lichte der hier diskutierten Orientierungsgrößen analysiert werden. Dazu zählen die Tarifentwicklung (Abschnitt 2), der Referenzwert von 60 % des Bruttomedianlohns der Vollzeitbeschäftigten (Abschnitt 3) sowie die weiteren Kriterien aus Artikel 5 (4) der Europäischen Mindestlohnrichtlinie (Abschnitt 4). Auf Grundlage dieser Analyse wird in einem kurzen Fazit der Rahmen für zukünftige Mindestlohnerhöhungen abgesteckt (Abschnitt 5)." (Autorenreferat, IAB-Doku)

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Lübker, Malte & Thorsten Schulten (2025): WSI-Mindestlohnbericht 2025. Neuorientierung der Mindestlohnpolitik führt zu realer Aufwertung. (WSI-Report 100), Düsseldorf, 19 S.

Abstract

"Auch in diesem Jahr setzt sich der Trend zu deutlichen nominalen Mindestlohnerhöhungen fort. Angesichts rückläufiger Inflationsraten führt dies in den meisten Ländern Europas zu kräftigen Kaufkraftzuwächsen für Mindestlohnempfänger*innen. Hintergrund ist die Umsetzung der Europäischen Mindestlohnrichtlinie, die in vielen Ländern zu einer Neuorientierung der Mindestlohnpolitik geführt hat und so die Dynamik der Mindestlöhne beflügelt. Die meisten EU-Länder folgen nun den in der Richtlinie verankerten Referenzwerten für angemessene Mindestlöhne, die bei 60 % des Medianlohns bzw. 50 % des Durchschnittslohns liegen. Damit auch Deutschland den Schritt zu einem angemessenen Mindestlohn macht, ist allerdings nach wie vor eine strukturelle Erhöhung notwendig." (Autorenreferat, IAB-Doku)

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Lübker, Malte & Thorsten Schulten (2025): WSI-Mindestlohnbericht 2025. Neuorientierung der Mindestlohnpolitik führt zu realer Aufwertung. In: WSI-Mitteilungen, Jg. 78, H. 2, S. 108-121. DOI:10.5771/0342-300x-2025-2-108

Abstract

"Auf Basis von Daten für 38 Länder in Europa und Übersee analysiert der diesjährige WSI-Mindestlohnbericht die Entwicklung der Mindestlöhne zum Stichtag 1. Januar 2025. Innerhalb der Europäischen Union hat sich das nominale Wachstum der Mindestlöhne zwar etwas abgeschwächt, lag mit 6,2 % im Median aber weiterhin verhältnismäßig hoch. Aufgrund rückgängiger Inflationsraten verblieb nach der Preisbereinigung mit 3,8 % im Median aber ein stärkeres Realwachstum als in den Vorjahren. Getragen wird die Entwicklung insbesondere von den osteuropäischen EU-Ländern. Der WSI-Mindestlohnbericht führt die Entwicklung auf eine Neuorientierung der nationalen Mindestlohnpolitiken im Zuge der Umsetzung der Europäischen Mindestlohnrichtlinie zurück. Wie der Bericht zeigt, sind die dort verankerten Schwellenwerte für einen angemessenen Mindestlohn von 60 % des Median- und 50 % des Durchschnittslohns inzwischen in vielen Ländern als Zielvorgaben übernommen worden." (Autorenreferat, IAB-Doku)

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Majchrowska, Aleksandra & Sylwia Roszkowska (2025): Does aging matter in the impact of the minimum wage on inflation? (MPRA paper / University Library of Munich 123506), München, 17 S.

Abstract

"We examine how demographic changes impact the transmission of minimum wage increases to inflation. The minimum wage growth can raise the prices of goods and services and accelerate inflationary processes. At the same time, a shrinking workforce and changes in its structure could lead to changes in the impact of minimum wage increases on the economy. We use the minimum wage augmented Phillips curve framework extended with the demographic variables. We employ the sample of 21 European Union countries in 2003-2023 and panel data techniques. Our study proves that the strength of the minimum wage pass-through effects on inflation depends on demographic factors. Aging of the workforce and shrinking workforce size weakens the impact of minimum wage increase on inflation. Contrary, a lower proportion of the less educated working-age population strengthens the minimum wage pass-through effects on inflation. Our results have important implications for macroeconomic, minimum wage, and education policies." (Author's abstract, IAB-Doku) ((en))

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Melo, Vitor C., Christopher Kaiser, David Neumark, Liya Palagashvili & Michael D. Farren (2025): Minimum Wage Laws and Job Search. (NBER working paper / National Bureau of Economic Research 33433), Cambridge, Mass, 37 S.

Abstract

"A large theoretical literature on job search predicts that a higher minimum wage will increase the number of job seekers for affected jobs, which can lead to more job creation and higher employment. This paper uses novel data on job search in all U.S. states to examine the effect of minimum wage increases on the number of job seekers for low-skilled positions. We find no evidence that higher minimum wages increase job search for low-skilled jobs. Instead, the evidence suggests that higher minimum wages decrease the number of workers seeking employment." (Author's abstract, IAB-Doku) ((en))

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Miller, Stephen, Gary A. Wagner & Alicia Plemmons (2025): Employment effects of minimum wage indexing: Establishment evidence from Oregon restaurants. In: Economic Inquiry, S. 1-34. DOI:10.1111/ecin.13284

Abstract

"Though 18 states will index their minimum wage to the Consumer Price Index by 2025, few studies have examined indexing's differential employment effects. Leveraging a period of stability in minimum wages (2000–2007) and two distinct national geocoded databases of establishments, we explore how indexing affected employment in Oregon restaurants, one of the earliest indexing states (2003). Nearest-neighbor matching is used as a preprocessing step before regression, pairing individual restaurants in Oregon to restaurants with similar characteristics in states where the minimum wage was unchanged. We find evidence that establishment employment falls 3.6% after indexing, implying an employment elasticity of −0.18." (Author's abstract, IAB-Doku, Published by arrangement with John Wiley & Sons) ((en))

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Monray, Jorge & Juan Morillo (2025): Minimum Wage and Effects on Unemployment: The Case of Spain and Its Implications on Simpson’s Paradox and Geographical Mobility. In: International journal of economics and finance, Jg. 17, H. 2, S. 26-44. DOI:10.5539/ijef.v17n2p26

Abstract

"This research explains the effects of the Government’s regular increases in the minimum wages on unemployment in Spain. Using a longitudinal analysis covering the years 2010 to 2023 the research collects data split by gender, age group, and Autonomous Community (AC). The data has been adjusted calculating the minimum wage Mean and Mode values. A negative or inverse correlation between minimum wage variables and unemployment is observed presenting Pearson values between -0.4 and -0.6 in most groups. Also, the research applies a one-way ANOVA test. It shows findings of unemployment reduction, specifically in the categories of young males, even though, the minimum wage in Spain has been regularly increased during the last years, in line with other authors. The aggregated and disaggregated data obtained vary and move in opposite directions confirming in a certain way that the principle of the Simpson’s Paradox could take place here. The research also confirms a relevant Estimated Size Effect (ETA) when comparing Autonomous Communities and their influence on unemployment for 55+ years old people." (Author's abstract, IAB-Doku) ((en))

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Nicolitsas, Daphne (2025): The Minimum Wage in Greece: A Review of Institutional Features, Developments and Effects Between 1975 and 2023. In: Jahrbücher für Nationalökonomie und Statistik, Jg. 245, H. 1-2, S. 79-111. DOI:10.1515/jbnst-2023-0041

Abstract

"This paper takes a historical perspective and assesses the evolution of the institutional features in setting the minimum wage in Greece between 1975 and 2023. It also evaluates developments regarding the minimum wage level, its bite and alignment with productivity. The paper reviews the limited available empirical literature on the association of the minimum wage with labour market outcomes (average wages, employment, inequality). It presents new estimates of the elasticity of average wages to the minimum wage. One of the paper’s key points is that the minimum wage setting mechanism has changed over time as the economic environment has changed. Reviewing the evolution of the minimum wage over time to evaluate whether the minimum wage follows productivity developments and whether the minimum wage bites leads to the second and third takeaways of the paper. The minimum wage follows productivity developments over the longer term but not always in the short term. The bite of the minimum wage is high and appears to be higher when government intervention in setting the minimum wage is stronger. As for the impact of the minimum wage on average wages, the new estimates of the elasticity of the average to the minimum wage the paper provides, use more precisely measured wage rates, which show a high elasticity of average to minimum wages. Finally, the review of the existing literature on the employment effects of the minimum wage shows that, as in other countries, the results are mixed with modest negative or no effects." (Author's abstract, IAB-Doku, © De Gruyter) ((en))

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Ohlert, Clemens (2025): Effects of the German Minimum Wage on Earnings and Working Time Using Establishment Data. In: Jahrbücher für Nationalökonomie und Statistik, Jg. 245, H. 1-2, S. 185-213. DOI:10.1515/jbnst-2024-0025

Abstract

"Diese Studie untersucht die Auswirkungen der Einführung des gesetzlichen Mindestlohns in Deutschland auf Stundenlöhne, Monatslöhne und bezahlte Arbeitszeiten. Es wird ein auf der Verdienststrukturerhebung (VSE) 2014 und der Verdiensterhebung (VSE) 2015 basierender Paneldatensatz genutzt und ein Differenz-in-Differenzen-Ansatz auf Betriebsebene angewendet. Die Vorteile und Grenzen dieses Ansatzes werden im Vergleich zu früheren Studien erörtert. Die Ergebnisse deuten auf einen Effekt der Einführung des gesetzlichen Mindestlohns auf die Stundenlöhne von etwa 13 Prozent hin. Aufgrund negativer Effekte auf die Arbeitszeit von etwa minus 6 Prozent sind die Auswirkungen auf den monatlichen Bruttoverdienst geringer, betragen aber immer noch etwa 8 Prozent. Der Mindestlohn hat vor allem bei Geringverdienern in Teilzeitbeschäftigung und in Ostdeutschland zu einer Erhöhung der Monatslöhne geführt. Damit werden neue Erkenntnisse zur Debatte über die Existenz und das Ausmaß von Mindestlohneffekten auf Verdienste und Arbeitszeiten sowie zu deren politischen Implikationen vorgelegt." (Autorenreferat, IAB-Doku)

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Pusch, Toralf (2025): Effects of the German Minimum Wage on Wages and Household Income. In: Jahrbücher für Nationalökonomie und Statistik, Jg. 245, H. 1-2, S. 153-183. DOI:10.1515/jbnst-2023-0024

Abstract

"This article examines the effects of the introduction of the statutory minimum wage on the distribution of individual income from wages, as well as gross and net means-weighted income of workers in Germany. For the first time, data from the Survey of Income and Consumption was used, in which incomes are recorded in great detail. Both descriptive findings and the results of Unconditional Quantile Regressions indicate that the incomes of workers in regions with a high level of minimum wage intervention experienced significant increases after the introduction of the minimum wage, ranging into the middle band of the income distribution. Accordingly, the minimum wage has positively influenced the incomes of a large number of employee households." (Author's abstract, IAB-Doku, © De Gruyter) ((en))

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Redmond, Paul & Seamus McGuinness (2025): The impact of a minimum wage increase on hours worked: heterogeneous effects by gender and sector. In: Economica, Jg. 92, H. 365, S. 84-106. DOI:10.1111/ecca.12555

Abstract

"A minimum wage increase could lead to adverse employment effects for certain subgroups of minimum wage workers, while leaving others unaffected. This heterogeneity could be overlooked in studies that examine the overall population of minimum wage workers. In this paper, we test for heterogeneous effects of a minimum wage increase on the hours worked of minimum wage employees in Ireland. For all minimum wage workers, we find that a 10% increase in the minimum wage leads to a one-hour reduction in weekly hours worked, equating to an hours elasticity of approximately −0.3. However, for industry workers and those in the accommodation & food sector, the impact is larger, with elasticity −0.8. We also find a negative impact on the hours worked among men on minimum wage, with no significant effect for women. This is due to the disproportionate number of men working in sectors that show the greatest impact on hours. In line with suggestions from the recent literature, we attempt to identify directly those in receipt of minimum wage using hourly wage data, while also studying the dynamic impact on hours worked over multiple time periods using a fully flexible difference-in-differences estimator." (Author's abstract, IAB-Doku, Published by arrangement with John Wiley & Sons) ((en))

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Redmond, Paul, Seamus McGuinness & Elish Kelly (2025): Labour Market Dynamics of Minimum Wage Workers. (IZA discussion paper / Forschungsinstitut zur Zukunft der Arbeit 17598), Bonn, 16 S.

Abstract

"Ireland is the only country in Europe with a direct question in its Labour Force Survey to identify minimum wage employees. By combining this with the longitudinal component of the Labour Force Survey, we examine the labor market transitions of minimum wage employees over a period of up to five quarters. After one quarter, just over half of minimum wage employees are still on minimum wage while 28 percent have moved to higher pay. After one year, almost half have moved to higher pay, with just one-third remaining on minimum wage. Employees that move to higher pay are more likely to change jobs compared to those that stay on minimum wage. Despite this, the majority (almost 90 percent) of minimum wage employees that transition to higher pay do so with the same employer. We employ a dynamic random effects probit model to estimate the degree of genuine state dependence of minimum wage employment. While there is some degree of true state dependence, much of the persistence in minimum wage employment is due to observed and unobserved heterogeneity, whereby minimum wage employees possess characteristics that result in them entering, and staying on, minimum wage. Our results also indicate that minimum wage employees are about five times more likely than higher paid employees to transition into economic inactivity. However, the majority of these are young people in education, and as such may not be overly concerning to policymakers." (Author's abstract, IAB-Doku) ((en))

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Salverda, Wiemer (2025): The Netherlands’ Minimum Wage 1969–2022: Can We Learn from Decline? In: Jahrbücher für Nationalökonomie und Statistik, Jg. 245, H. 1-2, S. 45-78. DOI:10.1515/jbnst-2023-0036

Abstract

"This paper evaluates the evolution of the Dutch minimum wage since its introduction in 1969 and discusses this as an intriguing case suggesting that a deeper, economic analysis of firm and employee behaviors is required for minimum-wage analysis in general. The real level of the minimum wage has fallen tremendously after 1979, all the way back nowadays to the level of the early 1970s, due to the system of uprating and to government interventions. The minimum-wage employment share shows an even stronger decline after 1979, but, surprisingly, the share below the unchanged real minimum wage of 1979 and in bands above this has remained largely unchanged. Intriguingly, firms have continued paying the same. Composition shifts in minimum-wage employment are significant, towards larger enterprise on the demand side and towards part-time employees on the supply side. Nationally and internationally, virtually all available minimum-wage analyses of employment effects focus on rises of the minimum wage and ignore drops. However, OECD data show that declines are surprisingly frequent, making them perfectly normal economic occurrences that firms will account for. I argue that declines deserve examination in their own right, certainly also from a monopsonistic perspective. Plausibly, declines incite different responses from increases, and their analysis will require the examination of heterogeneous behavior of both firms and employees. Such analysis will reinforce the economics of minimum-wage analysis as advocated by David Neumark and its integration in labor economics as advocated by David Card." (Author's abstract, IAB-Doku, © De Gruyter) ((en))

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Schaitberger, Tim (2025): Minimum or Living Wage? Framing Effects on Preferences and Expectations. In: BJIR, Jg. 63, H. 2, S. 249-265. DOI:10.1111/bjir.12847

Abstract

"Living wage campaigns are widely studied, yet less is known about how the frame differs from the minimum wage regarding public opinion and preferences. Such framing effects hold policy implications, as in 2016, UK Government changed the name of the regulatory wage floor to a living wage, concurrent with calls for welfare benefits cuts. This study explores how using the frame of ‘living’ rather than ‘minimum’ wage changes public socioeconomic expectations and preferences, and examines how a proposed wage increase, ranging from 50p to £6, comparatively influences public support for welfare spending. Methodologically, a sample from the United Kingdom's general population was recruited to participate in a series of online survey experiments. Treatment frames were randomly administered, followed by questions regarding the regulatory wage floor, and socioeconomic and redistributive preferences. Findings suggest introducing the term ‘living wage’ results in (1) higher expected real wages and unemployment effects; (2) raises the preferred wage floor for the United Kingdom and London; (3) greater desire for separate regional wage floors and (4) modest evidence suggesting that a living wage frame increases support for welfare spending. Interestingly, a proposed monetary wage floor increase had a null effect on welfare preferences when calling for a low or modest increase. However, a substantial proposed increase of over 50% led to a sharp reduction in support for benefits spending." (Author's abstract, IAB-Doku, Published by arrangement with John Wiley & Sons) ((en))

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Schmid, Ramona (2025): Mind the gap: effects of the national minimum wage on the gender wage gap of full-time workers in Germany. In: Journal of Economic Inequality, S. 1-30. DOI:10.1007/s10888-025-09669-6

Abstract

"Since 2015, the national minimum wage aims to benefit primarily low-wage workers in Germany. I examine how the minimum wage influences gender wage gaps of full-time workers within the lower half of the wage distribution on a regional level. Using administrative data, distinct regional differences in the extent of gender wage gaps and responses to the minimum wage become clear. Overall, wage gaps between men and women at the 10th percentile decrease by 2.46 and 6.34 percentage points in the West and East of Germany after 2015. Applying counterfactual wage distributions, I show that introducing the minimum wage explains decreases in gender wage gaps by 60% to 95%. Group-specific analyses demonstrate various responses based on age, educational level and occupational activity. Counterfactual aggregate Oaxaca-Blinder decompositions indicate that discriminatory remuneration structures decrease in the West of Germany after introducing the minimum wage." (Author's abstract, IAB-Doku) ((en))

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Sotirakopoulos, Panagiotis, Cahit Guven, Aydogan Ulker & Carol Graham (2025): The impact of minimum wages on overall health and well-being: Global evidence from the Gallup World Poll. In: Social Science & Medicine, Jg. 375. DOI:10.1016/j.socscimed.2025.118064

Abstract

"We examine the impact of minimum wage increases on the overall self-reported health and subjective well-being of low-skilled workers using the Gallup World Poll from 2009 to 2020. We identify effects using within-country changes over time and cross-country variations in the timing and intensity of minimum wage increases across 87 countries. Our findings suggest that minimum wage increases benefit health and certain dimensions of subjective well-being. Specifically, we estimate a range of specifications and find that a 10 percent increase in the minimum wage leads to an increase in self-reported health ranging from 0 % to 1 % and an increase in satisfaction with the standard of living between 1 % and 6 %, at the outcome means. Minimum wage increases are linked to higher incomes, a lower likelihood of overtime work, enhanced social interactions, and more positive daily experiences. These benefits are especially significant in countries with stronger rule of law, among male workers, and for individuals in nations with free and universal healthcare access. A series of sensitivity and placebo tests confirm the robustness of these findings." (Author's abstract, IAB-Doku, © 2025 The Author(s). Published by Elsevier Ltd.) ((en))

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Steenks, Koen, Arjan Heyma & Tobias Vervliet (2025): The Effects of Dutch Youth Minimum Wage Increases on Income Inequality. In: De Economist, S. 1-32. DOI:10.1007/s10645-025-09451-z

Abstract

"This study employs increases in the Dutch Youth Minimum Wage (YMW) in 2017 and 2019 for certain age groups as a natural experiment to examine the impact of changes in minimum wages on income inequality through the employment-channel. Using the Difference-in-Difference (DiD) and Two-Stage Least Squares (2SLS) methods, it estimates the effects of YMW increases on hourly wages and working hours across various income segments. These effects are then used to simulate the monthly income distribution after the YMW increases in 2017 and 2019. This way, a comparative analysis is conducted between the observed income distribution prior to the YMW increases and the simulated income distribution thereafter, focusing on the aspect of income inequality. The findings reveal distinct effects based on the magnitude of the wage increase. Modest increases (for individuals aged 18–19) and substantial increases (for individuals aged 20–22 in 2017 and 20–21 in 2019) both generate spike and spillover effects, influencing individuals earning hourly wages up to at least 120% of the new minimum wage. Small increases reduce working hours for higher-income individuals, while larger increases negatively affect working hours for middle-income earners (100–150% of the new YMW) but benefit those earning below 100% and above 150% of the new threshold. Overall, both small and large YMW increases contribute to income redistribution by altering wages and working hours." (Author's abstract, IAB-Doku, © Springer-Verlag) ((en))

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Thielen, Clemens & Philipp Weinschenk (2025): Analyzing the effects of minimum wages: a microeconomic approach. In: Economic Theory, Jg. 79, H. 3, S. 945-991. DOI:10.1007/s00199-024-01607-3

Abstract

"We use a microeconomic approach to analyze the effects of minimum wages. Agents are allowed to have different productivities at different principals as well as different costs of working. We obtain several new and interesting effects. Minimum wages could influence the generated surplus when leaving employment unaffected, and destroy jobs that generate relatively high levels of surplus when affecting employment. Furthermore, minimum wages could harm agents even if these stay employed, while principals could benefit from them. We provide a complete characterization of the effects and show that these hold independently of the specific bargaining procedure and information structure." (Author's abstract, IAB-Doku) ((en))

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Wiltshire, Justin, Carl McPherson, Michael Reich & Denis Sosinskiy (2025): Minimum Wage Effects and Monopsony Explanations. In: Journal of labor economics, S. 1-46. DOI:10.1086/735551

Abstract

"We present the first causal analysis of a seven-year run-up of minimum wages to $15. Using a novel stacked county-level synthetic control estimator and data on fast-food restaurants, we find substantial pay growth and no disemployment. Our results hold among lower-wage counties and counties without local minimum wages. Minimum wage increases reduce Separation rates and raise wages faster than prices at McDonald’s stores; both findings imply a monopsonistic labor market with declining rents. In the tight post-pandemic labor market, when laborsupply becomes more elastic, we find positive employment effects. These become larger and statistically significant after addressing pandemic-response confounds." (Author's abstract, IAB-Doku) ((en))

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Zhang, Weilong & Petra E. Todd (2025): Distributional Effects of Local Minimum Wages: A Spatial Job Search Approach. In: Journal of labor economics, Jg. 43, H. S1, S. S221-S267. DOI:10.1086/734391

Abstract

"This paper develops a spatial general equilibrium job search model to study the effects of local and universal minimum wage policies on employment, wages, job postings, vacancies, migration, and welfare. Workers search for jobs locally and in neighboring areas, deciding whether to migrate or commute after receiving remote offers. The model, estimated using ACS and QWI data, reliably forecasts commuting responses to city minimum wage hikes. Simulations show that low-skill (noncollege) workers benefit from local wage increases up to $12.50. The greatest per capita welfare gain for all workers is achieved by a $15.25 universal minimum wage." (Author's abstract, IAB-Doku) ((en))

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Özmen, Mustafa Utku & Belgi Turan (2025): Two birds, one stone: minimum wage and child labor. In: International Journal of Manpower, Jg. 46, H. 1, S. 168-196. DOI:10.1108/ijm-08-2023-0440

Abstract

"Purpose: This paper investigates the impact of quasi-exogenous and substantial increases in the minimum wage on child labor outcomes in Türkiye. The study aims to provide empirical evidence on how minimum wage policies affect child labor outcomes in a developing country context, with a focus on gender and age differences. It seeks to understand whether minimum wage increases lead to a reduction in child labor and whether the impact is different for various demographic groups. Design/methodology/Approach: The research employs a difference-in-differences methodology using data from the 2012 and 2019 Child Labor Force Survey in Türkiye. The treatment group consists of children from households with minimum wage earners, while the control group comprises children from other households. Various labor market outcomes are analyzed, and robustness checks are performed. Findings: Our findings indicate that while the overall effect of minimum wage increases on child labor is statistically insignificant, there are notable heterogeneous impacts across different demographic groups and employment sectors. Specifically, we observe a significant reduction in the employment probability of girls under the age of 15 and unpaid family workers. Additionally, the likelihood of younger children being wage earners decreases, and the minimum wage increase reduces employment in the agriculture and services sectors for certain subgroups. The impact is also more limited for children in single-adult-worker households. Social implications: These results underscore the varying effects of minimum wage policies on child labor and highlight the importance of considering demographic and sectoral differences in policy formulation. Policymakers should complement such policies with income-generating programs and targeted education initiatives to address child labor issues more comprehensively and sustainably. Originality/value: This study fills a critical gap in the limited international literature on the causal effects of minimum wage policies on child labor incidence. One notable exception, Menon and van der Meulen Rodgers (2018) have explored the impact of minimum wage on child labor in India using regional variation, our study uniquely analyzes the effects at the household level in Türkiye. This approach provides valuable insights into how minimum wage changes affect child labor outcomes in a developing economy context with a high prevalence of minimum wage earners. It also contributes to the broader economic understanding of child labor and household income dynamics." (Autorenreferat, IAB-Doku, © Emerald Group)

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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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Ahn, Taehyun (2024): Minimum wage and self-employed business owners: Evidence from South Korea. In: Labour Economics, Jg. 88. DOI:10.1016/j.labeco.2024.102539

Abstract

"This study examines the influences of minimum wage on self-employment exits, using recent changes in the minimum wage level in South Korea. Using the cross-industry variation on the impact of the minimum wage—the proportion of workers whose wages are below the minimum wage in the upcoming year—combined with individual longitudinal data, I estimate the model of self-employment exits. Overall, the estimates show that the minimum wage hike has no significant impact on self-employed workers. However, it increases the likelihood of the business closing for the self-employed who hire employees. The results imply that a ten percent increase in the minimum wage raises the exit probability by 2.6 percentage points, which is 30.9 % of the average exit rate for those with employees. Moreover, the exits are significantly associated with the transition to non-employment." (Author's abstract, IAB-Doku, © 2024 Elsevier) ((en))

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Alessandrini, Diana & Joniada Milla (2024): Minimum Wage Effects on Human Capital Accumulation: Evidence from Canadian Data. In: Journal of Human Capital, Jg. 18, H. 2, S. 346-376. DOI:10.1086/728084

Abstract

"We investigate the impact of the minimum wage on individuals’ post-secondary schooling decisions. Using Canadian longitudinal data, we explore 136 minimum wage amendments and find three novel results. First, the minimum wage affects both thequantity and type of human capital acquired by students. A 10% increase in the minimum wage increases community-college enrollment by 6.2% but reduces University enrollment by 6.5%. Second, high minimum wages widen the university participation gap between individuals with different levels of parental education. Finally, Minimum wage hikes encourage workers who recently separated from their job to return to post-secondary education as mature students" (Author's abstract, IAB-Doku) ((en))

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Alvarez, Fernando, Robert Shimer & Fabrice Tourre (2024): Unions: Wage floors, seniority rules, and unemployment duration. In: Journal of Economic Dynamics and Control, Jg. 169. DOI:10.1016/j.jedc.2024.104965

Abstract

"This paper examines the impact of unions on unemployment and wages in a dynamic equilibrium search model. We model a union as imposing a minimum wage and rationing jobs to ensure that the union's most senior members are employed. This generates rest unemployment, where following a downturn in their labor market, unionized workers are willing to wait for jobs to reappear rather than search for a new labor market. We characterize the hazard rate of exiting unemployment, and show that it is low at long durations whenever the union-imposed minimum wage is high; we establish that a high union-imposed minimum wage generates a compressed wage distribution and a high turnover rate of jobs —properties consistent with the data. Finally, we show that seniority rules lead to lower unemployment levels, relative to an alternative rule allocating jobs to workers randomly." (Author's abstract, IAB-Doku, © 2024 Elsevier) ((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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Arnadillo, Juan J., Amadeo Fuenmayor & Rafael Granell (2024): The relationship between minimum wage and employment. A synthetic control method approach. In: The Economic and Labour Relations Review, Jg. 35, H. 3, S. 771-791. DOI:10.1017/elr.2024.44

Abstract

"Spain increased its minimum wage (MW) by 22% in 2019. Given the intense debate in the economic literature on the impact of MW increases on the labour market, we conduct an impact assessment of this policy. The synthetic control method will be used to replicate the Spanish labour market by means of a pool of European countries that, in the absence of other reliable measures, simulates the evolution of Spanish employment. This will allow us to identify the causal effect from the increase in the MW. After applying the technique, the increase in the MW is found to have no effect on employment. The results have been subjected to robustness tests such as leave one out or segmentation by gender or age." (Author's abstract, IAB-Doku) ((en))

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Aumayr-Pintar, Christine, Carlos Vacas-Soriano, Jakub Kostolný & Marco Seghesio (2024): Minimum wages in 2024: Annual review. (Eurofound research report / European Foundation for the Improvement of Living and Working Conditions), Dublin, 94 S.

Abstract

"Minimum wages protect workers from unjustified low wages and ensure a level playing field for companies. All EU Member States and Norway have minimum wages in place, albeit in different forms. Among the 27 Member States, 22 have a national minimum wage, with one (or sometimes more than one) rate setting a basic wage floor. In addition, collective agreements are used to further regulate pay and usually set rates above the national minimum wage. In the remaining five Member States and Norway, minimum wages are set in sectorlevel collective agreements, which includes a high coverage of workers in these countries. The 2024 version of this annual review provides an update on minimum wage developments, details how the rates were set and which criteria were used in their adjustment, and maps the influence of EU-level policy on minimum wage setting." (Text excerpt, IAB-Doku) ((en))

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Azar, José, Emiliano Huet-Vaughn, Ioana Marinescu, Bledi Taska & Till von Wachter (2024): Minimum Wage Employment Effects and Labor Market Concentration. In: The Review of Economic Studies, Jg. 91, H. 4, S. 1843-1883. DOI:10.1093/restud/rdad091

Abstract

"This paper shows that more highly concentrated labor markets experience more positive employment effects of the minimum wage. In the most concentrated labor markets, employment rises following a minimum wage increase. The paper establishes its main findings by studying the effects of local minimum wage increases on a key low-wage retail sector, and using data on labor market concentration that covers the entirety of the U.S. with fine spatial variation at the occupation level. The results carry over to the fast-food sector and the entire low-wage labor market and are robust to using proxies of labour market concentration available for a broader range of industries, such as the number of establishments and population density. A model of oligopsonistic competition can explain these effects: there is more room to increase wages in high-concentration areas where wages tend to be further below marginal productivity. These findings provide evidence supporting monopsonistic wage setting as an explanation for the near-zero minimum wage employment effect documented in prior work." (Author's abstract, IAB-Doku) ((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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Blömer, Maximilian Joseph, Nicole Gürtzgen, Laura Pohlan, Holger Stichnoth & Gerard J. van den Berg (2024): Unemployment effects of the German minimum wage in an equilibrium job search model. In: Labour Economics, Jg. 91, 2024-08-31. DOI:10.1016/j.labeco.2024.102626

Abstract

"We structurally estimate an equilibrium search model using German administrative data and use the model for counterfactual analyses of a uniform minimum wage. The model with worker and firm heterogeneity does not restrict the sign of employment effects a priori; it allows for different job offer arrival rates for the employed and the unemployed and lets firms optimally choose their recruiting intensity. We find that unemployment is a non-monotonic function of the minimum wage level. Effects differ strongly by labor market segment defined by region, skill, and permanent worker ability." (Author's abstract, IAB-Doku, © Elsevier) ((en))

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Bossler, Mario, Ying Liang & Thorsten Schank (2024): The Devil is in the Details: Heterogeneous Effects of the German Minimum Wage on Working Hours and Minijobs. (arXiv papers 2403.17206), 79 S. DOI:10.48550/arXiv.2403.17206

Abstract

"In 2015, Germany introduced a national minimum wage. While the literature agrees on at most limited negative effects on the overall employment level, we go into detail and analyze the impact on the working hours dimension and on the subset of minijobs. Using data from the German Structure of Earnings Survey in 2010, 2014, and 2018, we find empirical evidence that the minimum wage significantly reduces inequality in hourly and monthly wages. While various theoretical mechanisms suggest a reduction in working hours, these remain unchanged on average. However, minijobbers experience a notable reduction in working hours which can be linked to the specific institutional framework. Regarding employment, the results show no effects for regular jobs, but there is a noteworthy decline in minijobs, driven by transitions to regular employment and non-employment. The transitions in non-employment imply a wage elasticity of employment of $-0.1$ for minijobs. Our findings highlight that the institutional setting leads to heterogeneous effects of the minimum wage." (Author's abstract, IAB-Doku) ((en))

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Bossler, Mario, Lars Chittka & Thorsten Schank (2024): A 22 percent increase in the German minimum wage: nothing crazy! (arXiv papers 2405.12608), 52 S. DOI:10.48550/arXiv.2405.12608

Abstract

"We present the first empirical evidence on the 22 percent increase in the German minimum wage, implemented in 2022, raising it from Euro 9.82 to 10.45 in July and to Euro 12 in October. Leveraging the German Earnings Survey, a large and novel data source comprising around 8 million employee-level observations reported by employers each month, we apply a difference-in-difference-in-differences approach to analyze the policy's impact on hourly wages, monthly earnings, employment, and working hours. Our findings reveal significant positive effects on wages, affirming the policy's intended benefits for low-wage workers. Interestingly, we identify a negative effect on working hours, mainly driven by minijobbers. The hours effect results in an implied labor demand elasticity in terms of the employment volume of -0.17 which only partially offsets the monthly wage gains. We neither observe a negative effect on the individual's employment retention nor the regional employment levels." (Author's abstract, IAB-Doku) ((en))

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Bossler, Mario & Bernd Fitzenberger (2024): Hat die Einführung des gesetzlichen Mindestlohns in Deutschland zu einem Rückgang der Beschäftigung geführt? In: A. Wambach, R. Riphahn, F. Breyer, K. Schmidt & G. Weizsäcker (Hrsg.) (2024): Wirtschaft verstehen, Zukunft gestalten, S. 112-119, 2024-03-26.

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Börschlein, Erik-Benjamin & André Diegmann (2024): 14 Euro Mindestlohn: Rund ein Fünftel der Betriebe erwartet einen Beschäftigungsrückgang. In: IAB-Forum H. 21.10.2024. DOI:10.48720/IAB.FOO.20241021.01

Abstract

"Auf die Erhöhung des Mindestlohns auf 12 Euro im Oktober 2022 haben rund 30 Prozent der Betriebe in Deutschland mit Lohnerhöhungen reagiert. Eine weitere Anhebung des Mindestlohns auf 14 Euro könnte mehr als jeden zweiten Betrieb betreffen. Etwa ein Drittel der Betriebe, die direkt davon betroffen wären, geht davon aus, innerhalb der kommenden zwölf Monate Beschäftigung abbauen zu müssen." (Autorenreferat, IAB-Doku)

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Chen, Jiwei & Zhigang Xu (2024): Can minimum wage increases narrow the gender wage gap? Evidence from China. In: Applied Economics, S. 1-19. DOI:10.1080/00036846.2024.2402953

Abstract

"Using data from the 2011–2019 China Household Finance Survey (CHFS), this paper examines the effect of minimum wage increases on the gender wage gap. The results show that minimum wage increases can significantly reduce the gender wage gap. We further examine the impact of minimum wages on the gender wage gap across the wage distribution and find that minimum wages are conducive to narrowing the gender wage gap at the bottom and middle parts of the wage distribution, but not conducive to reducing the gender wage gap at the upper part of the wage distribution. We also identity heterogeneous effects of minimum wages on the gender wage gap across age, education level, hukou, and work unit. Finally, we find that minimum wages have a negative effect on low-wage workers’ employment. Therefore, governments need to weigh their role in reducing the gender wage gap against the potential negative employment effects when adjusting the minimum wage standard." (Author's abstract, IAB-Doku) ((en))

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Danziger, Eliav & Leif Danziger (2024): A Minimum Wage May Increase Exports and Firm Size Even with a Competitive Labor Market. (IZA discussion paper / Forschungsinstitut zur Zukunft der Arbeit 16846), Bonn, 21 S., Anhänge.

Abstract

"This paper explores how a minimum wage affects a firm's behavior with a competitive labor market and an uncertain export cost. The model provides several novel insights which are consistent with recent empirical evidence. Thus, a minimum wage increases an exporter's foreign-market size and may cause a non-exporter to start exporting. The foreign-market size may increase so much that, although the home-market size decreases, the overall firm size increases." (Author's abstract, IAB-Doku) ((en))

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Dao, Ngoc (2024): Federal minimum wage expansion to homecare workers: Employment and income effects. In: Labour Economics, Jg. 87. DOI:10.1016/j.labeco.2024.102511

Abstract

"The rapid growth of the home care industry coincides with increases in the proportion of the population over 65 years of age and more likely to need assistance with basic daily activities due to illness or disability. Yet, the growth in home care use has been accompanied by concerns about the quality of the care provided. Higher wages and better legal protection might improve the quality of home health care services. This study examines the 2013 Home Care Rule promulgated by the Department of Labor, which added home care workers to the groups covered under the federal minimum wage with minimum hourly and overtime rates. The results show large effects (7–9 %) on part-time employment increase, small effects on work hour reduction (by 2–4 %), and nonnegative effect on overall employment level following the expansion. Despite the decline in hours worked, there is no negative impact on earnings among homecare workers." (Author's abstract, IAB-Doku, © 2024 Elsevier) ((en))

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Demir, Gökay (2024): Labor Market Frictions and Spillover Effects from Publicly Announced Sectoral Minimum Wages. (IZA discussion paper / Forschungsinstitut zur Zukunft der Arbeit 17510), Bonn, 77 S.

Abstract

"This paper analyzes the horizontal spillover effects of Germany's first sectoral minimum wage. Using a difference-in-differences estimation, I examine the impact of the public announcement and introduction of the minimum wage on sub-minimum wage workers in related jobs outside the minimum wage sector, defined using employment flows. I find an increase in wages and job-to-job transitions for sub-minimum wage workers in related jobs. The spillover effects are driven by workers who reallocate to better-paying establishments, have low labor market experience, and are more closely connected to the minimum wage sector by having former coworkers in that sector." (Author's abstract, IAB-Doku) ((en))

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Derenoncourt, Ellora & David Weil (2024): Voluntary Minimum Wages. (NBER working paper / National Bureau of Economic Research 32546), Cambridge, Mass, 90 S.

Abstract

"Recent wage growth at the bottom of the earnings distribution in the U.S. has reversed a decades-long trend of widening wage inequality. Numerous state and local minimum wage increases have overtaken an effectively non-binding federal minimum, and robust labor demand in the post-pandemic recovery drove wage growth in the low-wage sector. An increasingly pervasive phenomenon over this same period (2014-2023) is the use of company-wide, voluntary minimum wages (VMWs) by private employers, including some of the largest U.S. retailers. We use anonymized payroll data for thousands of firms collected by a major credit bureau to study the effects of these policies on large retailers' own wages and employment, as well as spillover effects onto other employers in shared labor markets, variously defined. Using stacked event studies centered around multiple VMW events and a continuous treatment variable defined as the gap between local area wages and the company minimum, we find that VMWs result in sizable wage increases and reductions in turnover at the companies that implemented them. Turning to wages at other companies, including those connected to the large retailer by worker flows, we estimate precise, economically negligible spillover effects. Despite the decline in separations from companies with voluntary minimums, overall hiring rates at connected employers do not decline, consistent with substitutability across new hires. Although voluntary minimum wage policies have affected over 3 million jobs among the largest retailers, their impact on the broader labor market is limited." (Author's abstract, IAB-Doku) ((en))

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Devereux, Kevin & Zuzanna Studnicka (2024): Non-monotonic employment effects by market structure and minimum wage level. (CLEF working paper series / Canadian Labour Economics Forum 66), Waterloo, ON, 62 S.

Abstract

"Minimum wages decrease employment in competitive markets, but can increase it in monopsonistic markets so long as they do not exceed the marginal product of labor. We find evidence of non-monotonicity both by market structure and minimum wage level. Minimum wage hikes initially increase hours worked for minimum wage workers (MWWs) in high-concentration local labor markets (LLMs), while increasing job loss likelihood for MWWs in low-concentration LLMs. Repeated hikes reverse initial hours gains, and may increase job loss. Non-MWWs show economically negligible responses throughout. Observing minimum wage status allows for both within- and across-market difference-in-difference designs, whose findings provide mutual support. We combine these into a triple-difference specification. Our results help to resolve the lack of consensus around the sign of the minimum wage's employment effects." (Author's abstract, IAB-Doku) ((en))

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Dingeldey, Irene & Ilana Nussbaum Bitran (2024): The European Minimum Wage Directive – and why it is a challenge to trade unions' but not employers' unity. In: Economic and Industrial Democracy, Jg. 45, H. 2, S. 489-510. DOI:10.1177/0143831X231161840

Abstract

"The proposal of a European minimum wage directive by the European Commission was supposed to improve working conditions. This article asks why such an initiative created a challenge to the unity of unions, but not of employers’ associations at transnational level. The authors provide a network analysis of the communication structure of social partners. Applying Scharpf’s concepts of positive and negative integration and Hirschman’s typology of exit, voice and loyalty, the authors use qualitative methods to show how employers stayed loyal and united towards negative integration, while different voices arose within the European Trade Union Confederation (ETUC) leading to the temporary ‘exit’ of the Swedish Trade Union Confederation." (Author's abstract, IAB-Doku) ((en))

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Dosi, Giovanni & Maria Enrica Virgillito (2024): Minimum Wage for Italy: From Social Justice to Productive Efficiency. In: Intereconomics, Jg. 59, H. 4, S. 231-235. DOI:10.2478/ie-2024-0046

Abstract

"This article discusses the case of the minimum wage for Italy as a policy instrument to foster both social justice and productive efficiency. After briefly reviewing the empirical evidence on the effects of minimum wages upon employment, wage distribution and firmlevel reallocation, it presents a series of channels, from the micro to the macro level that can represent transmission mechanisms able to trigger positive feedback loops in the macroeconomic system." (Text excerpt, IAB-Doku) ((en))

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Dube, Arindrajit & Attila Lindner (2024): Minimum Wages in the 21st Century. (CReAM discussion paper 2024,25), London, 127 S.

Abstract

"This chapter surveys the literature on the impact of minimum wages on low-wage labor markets. We describe and critically review the empirical methods in the new minimum wage literature, particularly those leveraging quasi-experimental variation. We provide a quantitative overview of the most recent evidence on the employment and wage effects of the policy, while also exploring emerging research on its impact on other margins, including amenities, other inputs (such as capital and high-skilled workers), firm entry and exit, output prices and demand, profits, and productivity. This approach allows us to present a comprehensive picture of how minimum wage policies affect firms, workers, and labor markets. We also review the evidence on the policy’s impact on wage inequality and income distribution. Finally, we discuss how these effects can vary depending on the economic context and the level of a country's development." (Author's abstract, IAB-Doku) ((en))

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Dube, Arindrajit & Ben Zipperer (2024): Own-Wage Elasticity: Quantifying the Impact of Minimum Wages on Employment. (NBER working paper / National Bureau of Economic Research 32925), Cambridge, Mass, 61 S.

Abstract

"The own-wage elasticity (OWE) of employment estimated using minimum wage increases provides an economically meaningful measure of the policy on jobs. We discuss how to interpret the magnitude of the OWE, including in terms of welfare and under alternative models of the labor market. We present a comprehensive set of OWE estimates from 88 studies and introduce an regularly updated repository of the estimates---https://economic.github.io/owe---an up-to-date snapshot of the existing literature for scholars and policymakers. We find that most studies to date suggest a fairly modest impact of minimum wages on jobs: the median OWE estimate of 72 studies published in academic journals is -0.13, which suggests that only around 13 percent of the potential earnings gains from minimum wage increases are offset due to associated job losses. Estimates published since 2010 tend to be closer to zero." (Author's abstract, IAB-Doku) ((en))

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Dörsam, Michael & Henrika Langen (2024): Minimum Wages in the Apprenticeship Market: Adverse Effects on Labor Demand? (Working paper / Swiss Leading House 234), Zürich, 38 S.

Abstract

"To increase the attractiveness of vocational education and training and secure a sufficient supply of skilled labor, the German government introduced a statutory minimum wage for apprenticeship contracts. As of January 1, 2020, apprentices starting an apprenticeship that year became entitled to an annually increasing minimum wage. Merging apprenticeship posting data from the Federal Employment Agency with administrative data on apprenticeship contracts, we investigate the causal effect of this minimum wage legislation on labor demand. Exploiting regional and occupational variation in the share of apprenticeships paid at the minimum wage level, we estimate a standard difference-in-differences, a triple difference, and a synthetic difference-in-differences model. Our estimates suggest that the introduction of the minimum wage had no significant effect on the overall number of apprenticeship postings in low-wage occupations in districts with a high prevalence of minimum wage contracts. However, when examining the minimum wage effect in selected low-wage occupations separately, we find substantial differences with no observable impact on health and wellness apprenticeships but a substantial reduction in apprenticeship postings in various low-wage production and manufacturing occupations." (Author's abstract, IAB-Doku) ((en))

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Egger, Hartmut, Udo Kreickemeier & Jens Wrona (2024): Monopsony Power, Offshoring, and a European Minimum Wage. (CESifo working paper 10920), München, 24 S.

Abstract

"This paper sets up a two-country model of offshoring with monopolistically competitive product and monopsonistically competitive labor markets. In our model, an incentive for offshoring exists even between symmetric countries, because shifting part of the production abroad reduces local labor demand and allows firms to more strongly execute their monopsonistic labor market power. However, offshoring between symmetric countries has negative welfare effects and therefore calls for policy intervention. In this context, we put forward the role of a common minimum wage and show that the introduction of a moderate minimum wage increases offshoring and reduces welfare. In contrast, a sizable minimum wage reduces offshoring and increases welfare. Beyond that, we also show that a sufficiently high common minimum wage cannot only eliminate offshoring but also inefficiencies in the resource allocation due to monopsonistic labor market distortions in closed economies." (Author's abstract, IAB-Doku) ((en))

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Firpo, Sergio & Alysson Portella Lorenzon (2024): The labor market in Brazil, 2001–2022. (IZA world of labor 441), Bonn, 10 S. DOI:10.15185/izawol.441.v2

Abstract

"In the first decade of the 21st century, the Brazilian economy experienced an important expansion followed by a significant decline in inequality. The minimum wage increased rapidly, reducing inequality with no negative effects on employment or formality. This resulted from economic growth and greater supply of skilled labor. However, from 2014-2021, real wages were stagnant, and unemployment rates surged. Inequality rose again, although only marginally. Some positive signs emerged in 2022, although it is still too early to know whether they mark a return to past trends or a recovery from the pandemic." (Author's abstract, IAB-Doku) ((en))

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Fossati, Sebastian & Joseph Marchand (2024): First to $15: Alberta's Minimum Wage Policy on Employment by Wages, Ages, and Places. In: ILR review, Jg. 77, H. 1, S. 119-142. DOI:10.1177/00197939231213064

Abstract

"Most minimum wage studies are identified on small, plentiful, mostly expected wage changes, spread out over time. A recent set of changes have instead been large, rapid, and unexpected, following the “Fight for $15” movement. Alberta is the first North American province, state, or territory to have this $15 minimum wage, with an unexpectedly large increase (47%) occurring over a short time horizon (3 years). The employment effects of this policy are estimated using a synthetic control approach on Labour Force Survey data. Similar to the existing literature, workers moved up the wage distribution, increment by increment, but with a higher distributional reach. Employment losses occurred at similar elasticities, but with large level changes, mostly among younger workers. Newer to the literature, regional employment losses were found in four of the five non-urban economic regions, but not in Alberta’s two main cities, showing the significance and nuance of regional heterogeneity." (Author's abstract, IAB-Doku) ((en))

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García-Morán, Eva, Ming-Jin Jiang & Heiko Rachinger (2024): Minimum Wage Effects on Job Attachment: A Gender Perspective. In: Jahrbücher für Nationalökonomie und Statistik, Jg. 244, H. 1-2, S. 83-112. DOI:10.1515/jbnst-2022-0012

Abstract

"We examine whether the effects of the introduction of a minimum wage on low-pay employment duration in Germany in 2015 are heterogeneous by gender. In order to disentangle the effects on women and men, we estimate a duration model with unobserved heterogeneity in which we allow gender differences and differences before and after the introduction of the minimum wage. We find that the reform does affect women and men differently, in particular, it mainly increases men’s job attachment. These gender differences in job attachment are the strongest for full-time employment. In consequence, although the minimum wage may have been set up as a gender-neutral instrument, in an indirect way, it affects women and men differently. We discuss different mechanisms that could account for our result and carry out several robustness checks." (Author's abstract, IAB-Doku, © De Gruyter) ((en))

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Georgieva, Kalina & Christian Hohendanner (2024): Von der jüngsten Anhebung des gesetzlichen Mindestlohns waren 18 Prozent der Betriebe und 5 Prozent der Beschäftigten betroffen. In: IAB-Forum H. 16.05.2024. DOI:10.48720/IAB.FOO.20240516.01

Abstract

"Im Jahr 2023 beschloss die Bundesregierung auf Vorschlag der Mindestlohnkommission eine Anhebung des gesetzlichen Mindestlohns zum 1. Januar 2024 von 12,00 auf 12,41 Euro pro Stunde. Davon waren anteilig weniger Betriebe und Beschäftigte betroffen als bei der letzten - deutlich stärkeren - Anhebung von 10,45 auf 12,00 Euro. Besonders stark waren die Auswirkungen, wie schon in den vergangenen Jahren, im Gastgewerbe sowie in der Nahrungs- und Genussmittelbranche. Dort profitierten rund 45 beziehungsweise 30 Prozent der Beschäftigten unmittelbar von der jüngsten Erhöhung." (Autorenreferat, IAB-Doku)

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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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Godøy, Anna, Michael Reich, Jesse Wursten & Sylvia Allegretto (2024): Parental Labor Supply. Evidence from Minimum Wage Changes. In: The Journal of Human Resources, Jg. 59, H. 2, S. 416-442. DOI:10.3368/jhr.1119-10540r2

Abstract

"We analyze effects of the minimum wage on the labor supply of parents of young children. Distributional difference-in-differences and event-study models document a sharp rise in employment rates of single mothers with children ages zero to five following minimum wage increases. Effects are concentrated among jobs paying close to the minimum wage. We find corresponding drops in the probability of staying out of the labor force to care for family members. Results are consistent with simple labor supply models in which childcare costs create barriers to employment. Minimum wage increases then enable greater labor force participation and reduce child poverty." (Author's abstract, IAB-Doku, © the Board of Regents of the University of Wisconsin System) ((en))

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Goerke, Laszlo & Markus Pannenberg (2024): Minimum wage non-compliance: the role of co-determination. In: European Journal of Law and Economics, S. 1-38. DOI:10.1007/s10657-024-09811-1

Abstract

"We analyse how co-determination is related to non-compliance with the German minimum wage, which was introduced in 2015. The Works Constitution Act (WCA), the law regulating co-determination at the plant level, provides works councils with indirect means to ensure compliance with the statutory minimum wage. Based on this legal situation, our theoretical model predicts that non-compliance is less likely in co-determined firms because works councils enhance the enforcement of the law. The economic correlates of co-determination, such as higher productivity and wages, affect non-compliance in opposite directions. The empirical analysis, using data from the German Socio-economic Panel (SOEP) for the years 2016 and 2019, demonstrates that non-compliance occurs less often for employees in co-determined establishments, while there is no correlation between non-compliance and the difference between the minimum wage and the wage actually paid." (Author's abstract, IAB-Doku, © Springer-Verlag) ((en))

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Gürtzgen, Nicole & Franka Vetter (2024): Mindestlohnerhöhung auf 12 Euro: Nur wenige Betriebe reagierten eigenen Angaben zufolge mit Entlassungen. In: IAB-Forum H. 04.04.2024, 2024-04-02. DOI:10.48720/IAB.FOO.20240404.01

Abstract

"Die bislang deutlichste Erhöhung des gesetzlichen Mindestlohns auf 12 Euro pro Stunde im Oktober 2022 betraf knapp 20 Prozent der Betriebe in Deutschland. Nach Daten der IAB-Stellenerhebung zeigten sich dabei große Unterschiede zwischen den Wirtschaftszweigen, wobei im Gastgewerbe anteilig am meisten, im Baugewerbe am wenigsten Betriebe betroffen waren. Als Reaktion auf die Anhebung des Mindestlohns erhöhten die Betriebe nach eigenen Angaben am häufigsten die Preise von Produkten und Dienstleistungen. Sie stellten außerdem häufiger Investitionen und Neueinstellungen zurück." (Autorenreferat, IAB-Doku)

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Hohendanner, Christian, Clemens Ohlert & Matthias Dütsch (2024): Turbulente Zeiten für Betriebe: Ukrainekrieg und 12-Euro-Mindestlohn. In: Wirtschaftsdienst, Jg. 104, H. 4, S. 258-263., 2024-02-16. DOI:10.2478/wd-2024-0070

Abstract

"Das Jahr 2022 war durch außergewöhnliche gesellschaftliche und wirtschaftliche Belastungen geprägt. Der Angriffskrieg Russlands auf die Ukraine führte zu starken energiepolitischen und wirtschaftlichen Verwerfungen, hoher Inflation und der Herausforderung, Geflüchtete aus der Ukraine aufzunehmen. Zugleich wurde im Jahr 2022 der gesetzliche Mindestlohn zweimal deutlich angehoben. Er stieg im Juli von 9,82 Euro auf 10,45 Euro und im Oktober auf 12 Euro pro Stunde. Im Hinblick auf die deutliche Anhebung des gesetzlichen Mindestlohns in diesem schwierigen wirtschaftlichen Umfeld stellen sich daher die Fragen, wie viele und welche Betriebe im Jahr 2022 von den Anhebungen des Mindestlohns erfasst wurden, wie stark diese Betriebe zugleich von den Auswirkungen des Ukrainekriegs betroffen waren und vor welchen Herausforderungen sie aktuell stehen." (Autorenreferat, IAB-Doku)

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Jardim, Ekaterina, Mark C. Long, Robert Plotnick, Jacob Vigdor & Emma Wiles (2024): Local minimum wage laws, boundary discontinuity methods, and policy spillovers. In: Journal of Public Economics, Jg. 234. DOI:10.1016/j.jpubeco.2024.105131

Abstract

"We use geographically precise longitudinal employment data documenting worker job-to-job mobility to study policy spillovers in the context of three local minimum wage increases. Estimated spillover impacts on wages and hours are statistically significant, geographically diffuse, and sufficient to create concern regarding interpretation of results even using not-immediately-adjacent regions as controls. Spillover effects appear less concerning with smaller interventions or those adopted in smaller jurisdictions. The boundary discontinuity method of causal inference may yield misleading results if a policy’s impacts do not stop at the border of the implementing jurisdiction." (Author's abstract, IAB-Doku, © 2024 Elsevier) ((en))

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Kalenkoski, Charlene Marie (2024): The effects of minimum wages on youth employment, unemployment, and income. Minimum wages reduce entry-level jobs, training, and lifetime income. (IZA world of labor 243,2), Bonn, 10 S. DOI:10.15185/izawol.243.v2

Abstract

"Empirische Studien belegen, dass Mindestlöhne die Beschäftigungschancen für junge Geringqualifizierte reduzieren. Zwar profitieren diejenigen, die einen Job finden, von höheren Einstiegslöhnen. Für arbeitslose Jugendliche wird der Arbeitsmarkteinstieg dagegen schwerer, was zu langfristigen Einkommenseinbußen führt. Das Lebenseinkommen sinkt zusätzlich aufgrund mangelnder betrieblicher Qualifizierungsangebote. Auszubildende sollten daher vom Mindestlohn ausgenommen sein. Durch staatliche Unterstützung in Form von Geld- oder Sachleistungen ließe sich ungelernten Jugendlichen effektiver helfen." (Autorenreferat, IAB-Doku)

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Koch, Andreas, Marcel Reiner & Tobias Scheu (2024): Der Mindestlohn in der Praxis. Auswirkungen auf Lohnstrukturen, Arbeitsorganisation und (Non-)Compliance. In: WSI-Mitteilungen, Jg. 77, H. 4, S. 262-272. DOI:10.5771/0342-300X-2024-4-262

Abstract

"In drei qualitativen empirischen Untersuchungen wurden in den Jahren 2017, 2019 und 2021 die Verhaltensmuster und Anpassungsstrategien von Betrieben und Beschäftigten auf die Einführung und die Erhöhungen des Mindestlohns analysiert. Der Beitrag greift ausgewählte Ergebnisse dieser Studien auf und geht der Frage nach, mit welchen Mitteln Betriebe auf die mindestlohnbedingten Veränderungen reagieren und welche Folgen dies für die Beschäftigten hat. Drei Aspekte stehen im Fokus: (1) Die Veränderungen der innerbetrieblichen Lohnstrukturen infolge des Mindestlohns, (2) organisatorische Veränderungen innerhalb der Betriebe zur Steigerung der Produktivität mit dem Ziel, Lohnkostensteigerungen zu kompensieren, und (3) die Einhaltung der Bestimmungen des Mindestlohngesetzes (Compliance). Auf Grundlage der durchgeführten Interviews mit Betriebsverantwortlichen, Beschäftigten und Betriebsräten werden diese Sachverhalte vertieft betrachtet. Ein Fokus liegt auf den Handlungsmotivationen und Begründungen für bestimmte Verhaltensweisen. Aus den Ergebnissen werden Schlussfolgerungen hinsichtlich aktueller und zukünftiger Erhöhungen des Mindestlohns gezogen." (Autorenreferat, IAB-Doku)

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Kozák, Michal, Georg Picot & Peter Starke (2024): Do minimum wages crowd out union density? In: BJIR, Jg. 62, H. 4, S. 760-778. DOI:10.1111/bjir.12809

Abstract

"Minimum wage legislation has spread across rich democracies in recent decades in response to rising inequality and in-work poverty. However, there are concerns that state regulation of wages could reduce incentives to join a union. We empirically test this crowding out hypothesis, using (1) an event-study macro-level analysis of trade union density in 19 advanced capitalist countries between 1960 and 2017 and (2) a multi-level analysis of 32 countries (1981−2020) where we use individual-level union membership as dependent variable. We find no evidence that statutory minimum wage adoption crowds out union density. We also test whether the most vulnerable groups of employees (young, low-skilled and low-income) have a lower propensity to join a union when a minimum wage is introduced but find no effect either." (Author's abstract, IAB-Doku, Published by arrangement with John Wiley & Sons) ((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, Jg. 88, 2024-04-04. 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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Kunaschk, Max (2024): Enriching administrative data using survey data and machine learning techniques. In: Economics Letters, Jg. 243, 2024-08-13. DOI:10.1016/j.econlet.2024.111924

Abstract

"I propose an approach to enrich administrative data with information only available in survey data using machine learning techniques. To illustrate the approach, I replicate a prominent study that used survey data to analyze the federal minimum wage introduction in Germany. In contrast to the original study, I use the universe of German establishments rather than the limited number of establishments that participated in the survey. As the administrative data do not contain information on whether establishments were treated by the minimum wage, I use a random forest classifier, trained on survey data, to predict the treatment status of establishments. The results obtained using the administrative data are qualitatively similar to the results obtained using the survey data. Beyond replication of previous research, this approach broadens the research potential of administrative data, enabling researchers to explore more detailed research questions at scale." (Author's abstract, IAB-Doku, © Elsevier) ((en))

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Lenhart, Otto & Kalyan Chakraborty (2024): Income assistance programs and population health – The dual impact of minimum wages and the earned income tax credit. In: Economics Letters, Jg. 234. DOI:10.1016/j.econlet.2023.111508

Abstract

"In this study, we provide new evidence on the interaction of state-level minimum wages and Earned Income Tax Credit (EITC) laws on several measures of population health. Using data from the National Vital Statistics Reports between 1999 and 2018, we estimate difference-in-differences models to evaluate the dual impact of minimum wages and the EITC on various causes of mortality, such as suicides, motor accidents and assaults. While several researchers have examined the health effects of both these policies separately, few studies have examined the potential interaction effects of these policies. Specifically, while previous work has provided evidence that both minimum wages and the EITC can reduce suicide rates, our study contributes to the literature by showing that the policies have a positive dual impact on population health. We find that a $1 increase in minimum wages reduces death rates due to suicides and assaults by 3.8 percent and 15.2 percent in states with EITC laws, respectively. In contrast, we show that minimum wages do not impact these outcomes in states without state-level EITC laws." (Author's abstract, IAB-Doku, © 2024 Elsevier) ((en))

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Li, Li & Haoming Liu (2024): The minimum wage and cross-community crime disparities. In: Journal of Population Economics, Jg. 37. DOI:10.1007/s00148-024-01023-w

Abstract

"This study examines the heterogeneous impacts of minimum wages, which could affect low-income workers' earnings and employment opportunities, on crime rates across neighboring communities. Using geo-tagged reported crime incident data from 18 major U.S. cities, we find that minimum wage increases reduce violent crime rates notably more in low-income communities than in high-income ones. On average, a one-dollar real minimum wage increase narrows the disparity in quarterly violent crime rates between low- and high-income communities by 12%. The impact varies considerably across different types of cities. The income effect resulting from raising the minimum wage is the main contributing factor." (Author's abstract, IAB-Doku, © Springer-Verlag) ((en))

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Link, Sebastian (2024): The price and employment response of firms to the introduction of minimum wages. In: Journal of Public Economics, Jg. 239. DOI:10.1016/j.jpubeco.2024.105236

Abstract

"This paper studies the price and employment responses of firms to the introduction of a nationwide minimum wage in Germany. Widely throughout the economy, affected firms responded by rapidly and frequently increasing prices without cutting employment. These decisions are strongly interrelated: Firms that increased prices relatively more often also showed a less negative employment response. The relative importance of both margins is associated with product market competition and the specific economic situation firms face when being treated. The empirically strong interdependence suggests that the employment effects of minimum wages may not be properly understood when abstracting from other adjustment margins." (Author's abstract, IAB-Doku, © 2024 Elsevier) ((en))

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Liu, Qing, Ruosi Lu, Stephen Teng Sun & Meng Zhang (2024): Unintended workplace safety consequences of minimum wages. In: Journal of Public Economics, Jg. 239. DOI:10.1016/j.jpubeco.2024.105247

Abstract

"We investigate the unintended impact of minimum wage increases on workplace safety. Using establishment-level data from the United States and a cohort-based stacked difference-in-differences design, we find that large increases in minimum wages have significant adverse effects on workplace safety. Our findings indicate that, on average, a large minimum wage increase results in a 4.6 percent increase in the total case rate. Event study estimates show that this adverse effect persists in the medium run. Furthermore, we find a more salient effect for firms more likely to be financially constrained or subject to a higher labor market rigidity in firing workers. We provide suggestive evidence that small minimum wage increases might reduce injury rates, highlighting the potential heterogeneity in the impact of minimum wage changes. We do not find evidence that capital-labor substitution could be behind the findings." (Author's abstract, IAB-Doku, © 2024 Elsevier) ((en))

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Lübker, Malte & Thorsten Schulten (2024): WSI-Mindestlohnbericht 2024. (WSI-Report 93), Düsseldorf, 23 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." (Autorenreferat, IAB-Doku)

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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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Lübker, Malte & Thorsten Schulten (2024): WSI-Mindestlohnbericht 2024: Reale Zugewinne durch die Umsetzung der Europäischen Mindestlohnrichtlinie. In: WSI-Mitteilungen, Jg. 77, H. 2, S. 107-119. DOI:10.5771/0342-300x-2024-2-107

Abstract

"Der diesjährige WSI-Mindestlohnbericht nimmt über die Entwicklung der Mindestlöhne zum Stichtag 1. Januar 2024 Bestand auf. Er stützt sich auf Daten aus 38 Ländern in Europa und Übersee. Innerhalb der Europäischen Union stiegen die Mindestlöhne im Vorjahresvergleich im Median nominal um 9,5 %, und auch preisbereinigt verblieb im Median ein Plus von 2,5 %. In 14 der 22 berücksichtigten EU-Staaten stiegen die Mindestlöhne real um mindestens 1 %, in sieben davon um 5 % oder mehr. Der Bericht führt dies auch auf den Einfluss der EU-Mindestlohnrichtlinie zurück. Eine Ausnahme hiervon ist Deutschland, wo die Anhebung durch die Mindestlohnkommission auf 12,41 € nicht ausreichte, um Kaufkraftverluste auszugleichen. Um das in der Richtlinie verankerte Ziel von 60 % des Medianlohns zu erreichen, wäre hierzulande für das Jahr 2024 ein Mindestlohn in Höhe von gut 14 € notwendig gewesen." (Autorenreferat,IAB-Doku)

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Maccarrone, Vincenzo (2024): The Europeanization of Wage Policy and Its Consequences for Labor Politics: The Case of Ireland. In: ILR review, Jg. 77, H. 5, S. 716-741. DOI:10.1177/00197939241268065

Abstract

"This article investigates the transnational labor politics associated with the Europeanization of wage policy, based on process tracing of Irish minimum wage regulation reforms over the past two decades. The policy struggle in Ireland started as an employer-led domestic challenge to market-embedding regulation and was then affected by two EU interventions on wage policy: one with a de-regulatory orientation (during EU-IMF conditionality) and one with a re-regulatory one (with the approval of the EU minimum wage directive). Findings show that differences in collective action undertaken by employers and trade unions to influence wage policy at the national level can be explained by the intersection of each actor’s preferences toward market-constraining or liberalizing labor regulation and their access to supranational (EU-level) institutions and support. This analysis contributes to debates on how transnational opportunity structures can alter labor’s and employers’ local power resources and strategies." (Author's abstract, IAB-Doku) ((en))

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Marchingiglio, Riccardo & Michael Poyker (2024): The Economics of Gender-Specific Minimum Wage Legislation. In: Journal of labor economics. DOI:10.1086/733493

Abstract

"Using full count U.S. census data, we study the impact of early 20th-century state-industry-specific minimum wage laws that primarily targeted female employees. Our triple-difference estimates suggest a null impact of the minimum wage laws, potentially reflecting disemployment effects and the positive selection bias of the workers remaining in the labor force. When comparing county-industry Trends between counties straddling state borders, female employment is lower by around 3.1% in affected county-industry cells. We further investigate the implications for own-wage elasticity of labor demand as afunction of cross-industry concentration, the channels of substitution between men and women, and heterogeneity by marital status." (Author's abstract, IAB-Doku) ((en))

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Marchingiglio, Riccardo & Mikhail Poyker (2024): The Economics of Gender-Specific Minimum Wage Legislation. (IZA discussion paper / Forschungsinstitut zur Zukunft der Arbeit 17016), Bonn, 79 S.

Abstract

"Using full count U.S. census data, we study the impact of early 20th-century state-industry-specific minimum wage laws that primarily targeted female employees. Our triple-difference estimates suggest a null impact of the minimum wage laws, potentially reflecting disemployment effects and the positive selection bias of the workers remaining in the labor force. When comparing county-industry trends between counties straddling state borders, female employment is lower by around 3.1% in affected county-industry cells. We further investigate the implications for own-wage elasticity of labor demand as a function of cross-industry concentration, the channels of substitution between men and women, and heterogeneity by marital status." (Author's abstract, IAB-Doku) ((en))

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Moog, Alexander (2024): Internal migration after a uniform minimum wage introduction. (arXiv papers 2404.19590), 47 S. DOI:10.48550/arXiv.2404.19590

Abstract

"Internal migration is an essential aspect to study labor mobility. I exploit the German statutory minimum wage introduction in 2015 to estimate its push and pull effects on internal migration using a 2% sample of administrative data. In a conditional fixed effects Poisson difference-in-differences framework with a continuous treatment, I find that the minimum wage introduction leads to an increase in the out-migration of low-skilled workers with migrant background by 25% with an increasing tendency over time from districts where a high share of workers are subject to the minimum wage (high-bite districts). In contrast the migration decision of native-born low-skilled workers is not affected by the policy. However, both native-born low-skilled workers and those with a migrant background do relocate across establishments, leaving high-bite districts as their workplace. In addition, I find an increase for unemployed individuals with a migrant background in out-migrating from high-bite districts. These results emphasize the importance of considering the effects on geographical labor mobility when implementing and analyzing policies that affect the determinants of internal migration." (Author's abstract, IAB-Doku) ((en))

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Natili, Marcello & Stefano Ronchi (2024): The Politics of the European Minimum Wage: Overcoming Ideological, Territorial and Institutional Conflicts in the EU Multi-level Arena. In: Journal of Common Market Studies, Jg. 62, H. 3, S. 725-743. DOI:10.1111/jcms.13526

Abstract

"Until recently, the idea of a European minimum wage (EMW) policy had never taken concrete shape, due to the heterogeneity of national wage-setting and collective bargaining institutions, uncertain EU competence on the matter, and widespread scepticism amongst political actors. In 2022, however, the EU adopted a directive on adequate minimum wages. How did this make it to the EU agenda, despite the many political, territorial and institutional tensions? What coalitions supported and opposed it? Based on a reconstruction of the policy process substantiated by an analysis of news media data and 14 interviews, this article investigates the multi-level politics of the EMW. It shows that, despite enduring 'euro-social scepticism' in northern Europe, the emergence of pro-minimum wage coalitions in key member states and the increase of party-competition dynamics at the EU level were crucial in overcoming the lines of conflict that had long hindered EU initiatives on minimum wage co-ordination." (Author's abstract, IAB-Doku, Published by arrangement with John Wiley & Sons) ((en))

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Neumark, David & Emma Wohl (2024): Do Higher Tipped Minimum Wages Reduce Race, Ethnic, or Gender Earnings Gaps for Restaurant Workers? (NBER working paper / National Bureau of Economic Research 32964), Cambridge, Mass, 61 S.

Abstract

"One of the arguments increasingly made to support large minimum wage increases is that they decrease wage or earnings gaps for minorities or women (e.g., Derenoncourt and Montialoux, 2021). The argument is often made with particular reference to higher tipped minimum wages for restaurant workers, because of discrimination in tipping that is immune to equal pay policy requirements. Of course, even if higher tipped minimum wages reduce hourly pay differences between groups, increases in tipped minimum wages can reduce employment or hours among restaurant workers (Neumark and Yen, 2023), and these effects could differ by race and gender, so implications for hourly earnings do not necessarily extend to overall earnings. We estimate the impact of variation in tipped minimum wages – or, equivalently, tip credits – on earnings of restaurant workers (which ignores employment variation but incorporates hours variation). We find that tipped minimum wages raise hourly earnings of women, but not of Blacks or Hispanics. But tipped minimum wages generally do not raise weekly earnings for these groups (because of hours declines for women). In contrast, regular minimum wages boost hourly and weekly earnings of all three groups of restaurant workers, with the effects arising from non-tipped workers." (Author's abstract, IAB-Doku) ((en))

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Neumark, David (2024): The effects of minimum wages on (almost) everything? A review of recent evidence on health and related behaviors. In: Labour, Jg. 38, H. 1, S. 1-65. DOI:10.1111/labr.12263

Abstract

"I review and assess the evidence on minimum wage effects on health outcomes and health‐related behaviors. The evidence on physical health points in conflicting directions, leaning toward adverse effects. Research on effects on diet and obesity sometimes points to beneficial effects, whereas other evidence indicates that higher minimum wages increase smoking and drinking and reduce exercise (and possibly hygiene). In contrast, there is evidence that higher minimum wages reduce suicides, partly consistent with the evidence of positive or mixed effects on other measures of mental health/depression. Overall, policy conclusions that minimum wages improve health are unwarranted or at least premature." (Author's abstract, IAB-Doku, Published by arrangement with John Wiley & Sons) ((en))

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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)

Zitatform

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 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))