The German minimum wage in the main construction sector: consequences on employment failed to appear

Abstract

"This brief report summarizes results from a recent comprehensive study on the impacts of the minimum wage in the German construction sector which was introduced in 1997. Eight years later, in East Germany a high ratio of workers earns wages close to the prevailing minimum wage level. This is not the case for West Germany. Positive impacts on wage growth appear subsequent to the introduction, especially pronounced in East Germany. Only very small or no effects on employment can be detected. No consequences appear for aspects of worker protection and the competitiveness of establishments. Impacts on foreign establishments and posted workers as well as on self-employed could not be evaluated." (Author's abstract, IAB-Doku) ((en))

Cite article

Apel, H., Bachmann, R., Vom Berge, P., König, M., Kröger, H., Paloyo, A., Schaffner, S., Umkehrer, M. & Wolter, S. (2012): Mindestlohn im Bauhauptgewerbe: Folgen für die Beschäftigung blieben aus. (IAB-Kurzbericht 04/2012), Nürnberg, 8 p.