Do minimum wages increase job satisfaction?

Abstract

"On January 1, 2015, a new statutory minimum wage of EURO 8.50 per hour of work was introduced in Germany. Using a difference-in-differences approach, we estimate effects on worker-level outcomes of continuing employees. The results reveal a meaningful absolute increase in the affected workers' pay satisfaction. The increase in job satisfaction is modest and predominantly driven by changes in pay satisfaction implying only a small effect on all other dimensions of job satisfaction. Moreover, effects from the minimum wage on work engagement and turnover intention are virtually zero." (Author's abstract, Published by arrangement with John Wiley & Sons) ((en))

Cite article

Bossler, M. & Broszeit, S. (2017): Do minimum wages increase job satisfaction? Micro data evidence from the new German minimum wage. In: Labour, Vol. 31, No. 4, p. 480-493., accepted on February 10, 2017. DOI:10.1111/labr.12117