The New Federal Minimum Wage in Germany : Affectedness of German Establishments

Abstract

"The 2014 IAB-Establishment Panel provides recent information on the affectedness of establishments by the new federal minimum wage, which requires an hourly wage of at least EURO 8.50. We present results on both the affectedness of establishments as well as the share of affected employees. 12 percent of the establishments in Germany report at least one employee to which the minimum wage applies, and within these establishments 45 percent of the employees are addressed by this new legislation. By German states, the results show a relatively higher affectedness in East Germany, and by industries, branches of the service sector more likely report incidences of wages initially below this new wage setting regulation." (Author's abstract, IAB-Doku) ((en))

Cite article

Bellmann, L., Bossler, M., Gerner, H. & Hübler, O. (2015): IAB-Betriebspanel: Reichweite des Mindestlohns in deutschen Betrieben. (IAB-Kurzbericht 06/2015), Nürnberg, 8 p.