Statutory minimum wage from the employers perspective

Abstract

The article discusses characteristics of minimum wage firms and analyses pros and cons of the statutory minimum wage from the employers' perspective. Employers' challenges include minimum wage induced personnel cost increases and the bureaucratic demands of tracking working hours. Results from the IAB-QUEST survey show that the reduction of working hours is a frequently stated reaction of employers. Additionally, 30 percent of minimum wage firms report price increases in reaction to minimum wage induced cost increases. Pros of the minimum wage could be an increased worker motivation or the regulation of the competition between firms. However, the largest fraction of employers does not confirm changes in worker motivation or in the competitive position of the firm due to the minimum wage.

Cite article

Bossler, M. & Jaenichen, U. (2017): Der gesetzliche Mindestlohn aus betrieblicher Sicht. In: WSI-Mitteilungen, Vol. 70, No. 7, p. 482-490. DOI:10.5771/0342-300X-2017-7-482