Minimum wage non-compliance in Germany. Statement of the Institute for Employment Research (IAB) prepared for the public hearing of the Ausschuss für Arbeit, Gesundheit und Soziales at the Landtag Nordrhein-Westfalen, September 9, 2020

Abstract

"A general minimum wage came into effect in Germany on 1 January 2015. While a positive effect on wages at the bottom end of the wage distribution has been documented following the introduction of the minimum wage, this does not mean that non-compliance does not exist. A final assessment of how many people are still being paid below the minimum wage level has so far not been reached. Estimates range from 483,000 people in 2018 to 2.4m people. This statement discusses the difficulties in estimating this quantity using existing data sources. Moreover, the statement summarises evidence from other countries on non-compliance with minimum wages. Finally, it discusses recent findings concerning the effects that the obligation to document working hours has on the extent of non-compliance." (Author's abstract, IAB-Doku) ((en))

Cite article

Roth, D. (2020): Nichteinhaltung des Mindestlohns in Deutschland. Stellungnahme des IAB zur öffentlichen Anhörung des Ausschusses für Arbeit, Gesundheit und Soziales im Landtag Nordrhein-Westfalen am 9.9.2020. (IAB-Stellungnahme 07/2020), Nürnberg, 11 p.