Beschreibung

"My study focuses on 16 low-wage sectors where Germany’s Ministry of Labor and Social Affairs has set sector-specific minimum wages. Before these regulations, the data show that wages and employment were lower in highly concentrated labor markets, indicating monopsonistic behavior by firms. The introduction of sectoral minimum wages raised worker pay across the board, with the wage increase - or “bite” - being stronger in highly concentrated markets. With these data, I thoroughly test the monopsony hypothesis. In slightly concentrated or competitive labor markets, introducing or raising sectoral minimum wages often led to reduced employment. Crucially, however, these negative employment effects diminished as labor market concentration increased. In highly concentrated, more monopsonistic markets, minimum wage hikes actually came along with positive employment effects. However, when the minimum wage reaches or exceeds the median wage in these low-wage sectors, even highly concentrated labor markets see these positive employment effects taper off." (Text excerpt, IAB-Doku) ((en))