Employment expectations and uncertainties ahead of the new German minimum wage

Abstract

"Followed by an extensive policy discussion late 2013 and early 2014, the new German minimum wage was introduced on 1 January 2015. This article analyzes announcement effects of the new statutory minimum wage on employer expectations in 2014. The IAB Establishment Panel allows for a difference-in-differences comparison between affected and unaffected employers and entails variables that address the employers' employment expectations. In 2014, affected employers show an increased employment uncertainty and a drop in their expected employment development. They also more likely report wage costs to become a problem. In size, the employment expectations translate into a loss of about 12 800 jobs." (Author's abstract, IAB-Doku) ((en))

Cite article

Bossler, M. (2016): Employment expectations and uncertainties ahead of the new German minimum wage. (IAB-Discussion Paper 03/2016), Nürnberg, 35 p.