Do minimum wages increase job satisfaction?

Abstract

"On 1 January 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, IAB-Doku) ((en))

Cite article

Bossler, M. & Broszeit, S. (2016): Do minimum wages increase job satisfaction? Micro data evidence from the new German minimum wage. (IAB-Discussion Paper 15/2016), Nürnberg, 20 p.