Recruitments in 2014 : Minimum Wage is already progressing

Abstract

"In 2014 5,7 million hires were realized in German firms. 28 per cent of them were located in the low wage sector and 12.5 per cent earned up to 8.50 Euros per hour. The German Job Vacancy Survey from the fourth quarter 2014 indicates that firms already reacted beforehand on the introduction of the minimum wage law in January 2015 by adjusting their payments. From all new hires, 4.5 per cent earned exactly the minimum wage of 8.50 Euros. There is a higher share of low paid jobs in Eastern Germany than in Western Germany and women are more affected than men, younger people more than middle aged persons. Furthermore, the probability to become employed in the low wage sector is higher in small firms, in the agricultural sector and in certain services sectors." (Author's abstract, IAB-Doku) ((en))

Cite article

Kubis, A., Rebien, M. & Weber, E. (2015): Neueinstellungen im Jahr 2014: Mindestlohn spielt schon im Vorfeld eine Rolle. (IAB-Kurzbericht 12/2015), Nürnberg, 8 p.