-PDF Download- Wage Inequality In Germany After The Minimum Wage Introduction EBOOK

Wage Inequality in Germany After the Minimum Wage Introduction

Author: Mario Bossler

Publisher:

Published: 2020

Total Pages:

ISBN-13:

We revisit the development of monthly wages in Germany between 2000 and 2017. While wage inequality strongly increased during the first years of this period, it recently returned to its initial level, raising the question what the role of the German minimum wage introduction for this reversal is. We identify effects of the minimum wage from difference-in-differences based on unconditional quantile regressions applied to German administrative employment data. The results show significant wage effects of varying magnitudes along the lower half of the wage distribution. Employment dynamics do not explain effects along the wage distribution, implying strong wage increases among the existing workforce. The increased individual labor income is not offset by decreasing social benefits. Overall, the introduction of the minimum wage can account for about half of the recent decrease in wage inequality.

The Contribution of the Minimum Wage to U.S. Wage Inequality Over Three Decades

Author: David H. Autor

Publisher: DIANE Publishing

Published: 2010

Total Pages: 67

ISBN-13: 143798018X

DOWNLOAD EBOOK →

We reassess the effect of state and federal minimum wages on U.S. earnings inequality using two additional decades of data and far greater variation in minimum wages than was available to earlier studies. We argue that prior literature suffers from two sources of bias and propose an IV strategy to address both. We find that the minimum wage reduces inequality in the lower tail of the wage distribution (the 50/10 wage ratio), but the impacts are typically less than half as large as those reported elsewhere and are almost negligible for males. Nevertheless, the estimated effects extend to wage percentiles where the minimum is nominally non-binding, implying spillovers. However, we show that spillovers and measurement error (absent spillovers) have similar implications for the effect of the minimum on the shape of the lower tail of the measured wage distribution. With available precision, we cannot reject the hypothesis that estimated spillovers to non-binding percentiles are due to reporting artifacts. Accepting this null, the implied effect of the minimum wage on the actual wage distribution is smaller than the effect of the minimum wage on the measured wage distribution.

Revisiting the German Wage Structure

Author: Benjamin Bruns

Publisher: GRIN Verlag

Published: 2013-08-26

Total Pages: 40

ISBN-13: 3656486913

DOWNLOAD EBOOK →

Seminar paper from the year 2013 in the subject Economics - Job market economics, grade: 1,0, Humboldt-University of Berlin (Angewandte Mikroökonometrie / Arbeitsmarktökonomik), course: Topics in Labour Economics, language: English, abstract: Using a large administrative data set, a recent study by Dustmann, Ludsteck, and Schönberg [2009] finds convincing evidence for rising wage inequality in West Germany during the past three decades. Their paper shows that the increase occurred above the median during the 1980s, and was augmented by rising inequality below the median in the 1990s. These results challenge the pervasive conception of the German wage structure being a paragon of stability. Within the scope of this seminar paper, I replicate parts of their analysis using a different data set, namely the German Socio-Economic Panel (GSOEP) for the period from 1984 to 2009. Using monthly and hourly earnings constructs, I assess the extent to which the results of Dustmann, Ludsteck, and Schönberg [2009] can be recovered from GSOEP data. I do so by exploring the wage distribution along several dimensions. In addition to this, I analyze composition-constant counterfactual wage densities using the kernel density reweighting method advanced by DiNardo, Fortin, and Lemieux [1996]. A provisional evaluation of my results suggests that I can confirm the majority of findings of the original paper along a qualitative dimension. A quantitative assessment, however, reveals considerable deviations.

Minimum Wages and Employment - Theory and Empirical Evidence with a special emphasis on Germany

Author: Peter Schmidt

Publisher: GRIN Verlag

Published: 2009-02-10

Total Pages: 37

ISBN-13: 3640263618

DOWNLOAD EBOOK →

Master's Thesis from the year 2008 in the subject Business economics - Economic Policy, grade: 1,0 (A), University of Wisconsin-Milwaukee (Department of Economics), course: Labor Economics II, language: English, abstract: One of the most important issues that was in the center of the political debate in Germany in the last few months is the introduction of minimum wages. It was caused by the politically forced imposition of a minimum wage in the sector for postal services which, in the view of many experts, provides a competitive advantage for the major postal service company “Deutsche Post World Net”1 compared to its competitors. Then it happened that the “PIN – Group AG” one of the most important domestic competitors of the “Deutsche Post World Net” was threatened by insolvency as its largest shareholder the publisher “Axel Springer AG” was no longer willing to invest money in the “PIN - Group AG”. Additionally, many newspapers published by Axel Springer AG wrote articles against the imposition of a minimum wage for many weeks and published many interviews with economic experts warning about the negative effects of a minimum wage on the overall German labor market. Furthermore, political considerations, e.g. by the secretary of labor, to introduce a federal minimum wage in Germany even caused the chairmen of the eight leading economic research institutes in Germany to publish a letter in the newspaper “Das Handelsblatt”2 where they advise politicians against the introduction of a federal minimum wage if (large) employment losses should be avoided. On the other hand, a few other researchers, experts and politicians like the “IAB”3 as a specific labor market research institute believe that minimum wages even could create jobs and must not necessarily destroy them. This paper is motivated by this ongoing debate between economists and policymakers in the whole world. That is why in the first part of the paper the major theoretical framework which is used by economists to analyze and empirically assess the impacts of minimum wages on employment should be presented.

The Role of Scientific Expertise in Minimum Wage Policy Making

Author: Fabian Klein

Publisher: Springer Nature

Published: 2021-03-01

Total Pages: 236

ISBN-13: 3658327464

DOWNLOAD EBOOK →

This book examines the role of scientific expertise in minimum wage policy making in Germany, the United Kingdom, and the United States. It finds that scientific research is an important part of the public discourse on minimum wages in all three countries. Newspapers frequently cite scholars and research institutions, providing their readers with a good sense of how scientific research evaluates the effects of minimum wages. How often this happens depends on the context. Most importantly, newspapers from the United States cite researchers more frequently than newspapers from the two European countries. The book also shows that scientific research influences the policy preferences of political actors such as trade unions, political parties, and government agencies. The influence is based on policy-oriented learning. It is strong in Germany and the United Kingdom, and weaker in the United States. In both cases, cross-country differences are found to be related to different styles of using scientific expertise in the three countries.

Evaluating Minimum Wage Laws

Author: André Müller

Publisher: GRIN Verlag

Published: 2020-08-11

Total Pages: 32

ISBN-13: 3346222772

DOWNLOAD EBOOK →

Seminar paper from the year 2020 in the subject Business economics - Economic Policy, grade: 1,7, SRH - Mobile University, language: English, abstract: The present paper aims at evaluating minimum wage laws. In order to reflect the topic, two countries – Germany and the United Kingdom –, which have already introduced minimum wages, are chosen as examples. Furthermore, the paper examines minimum wages from the perspective of two different economic theories on government intervention by introducing the neoclassical and the Keynesian approach. It investigates the observed actual impact and effectiveness of minimum wage legislation against the presented market theories as well as against the objectives and expectations raised by the legislation. Finally, the student paper gives a recommendation whether the introduction of minimum wages is actually worthwhile or not. The paper starts with a definition of the problem and introduces objectives as well as current relevance of the topic. Subsequently, the theoretical background is reflected. This includes the definition of the term minimum wage as well as presenting the neoclassical and the Keynesian economic theory. Chapter two finally ends with a short summary. Afterwards, the paper continues with Chapter three, which describes the minimum wage concepts of Germany and the United Kingdom. Therefore, the implementation track records explain the history, structure and the scope of the different minimum wage concepts. The critical discussion in chapter four finally evaluates the observed actual impact and effectiveness of minimum wages against the economic theories. Furthermore, it reflects the expectations and objectives which are raised by the government. The paper concludes with a summary and an outlook.

Low-Wage Work in Germany

Author: Gerhard Bosch

Publisher: Russell Sage Foundation

Published: 2008-04-03

Total Pages: 344

ISBN-13: 1610440765

DOWNLOAD EBOOK →

In recent years, the German government has intentionally expanded the low-wage work sector in an effort to reduce exceptionally high levels of unemployment. As a result, the share of the German workforce employed in low-paying jobs now rivals that of the United States. Low Wage Work in Germany examines both the federal policies and changing economic conditions that have driven this increase in low-wage work. The new "mini-job" reflects the federal government's attempt to make certain low-paying jobs attractive to both employers and employees. Employers pay a low flat rate for benefits, and employees, who work a limited number of hours per week, are exempt from social security and tax contributions. Other factors, including slow economic growth, a declining collective bargaining system, and the influx of foreign workers, also contribute to the growing incidence of low-wage work. Yet while both Germany and the United States have large shares of low-wage workers, German workers receive health insurance, four weeks of paid vacation, and generous old age support—benefits most low-wage workers in the United States can only dream of. The German experience offers an important opportunity to explore difficult trade-offs between unemployment and low-wage work. A Volume in the Russell Sage Foundation Case Studies of Job Quality in Advanced Economies

The effects of the legal minimum wage in Germany

Author: Fabian Uyanakumarage

Publisher: GRIN Verlag

Published: 2020-03-23

Total Pages: 38

ISBN-13: 3346135128

DOWNLOAD EBOOK →

Seminar paper from the year 2020 in the subject Economics - Other, grade: 1,3, University of Applied Sciences Riedlingen, language: English, abstract: „Minimum wage is the minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period, which cannot be reduced by collective agreement or an individual contract”. The government uses the minimum wage as a basic price control, which can force companies to create equal pay for all employees regardless of their origin, gender or belief. Currently, 90 percent of countries have regulations or binding tariff regulations that determine the minimum wage. In countries such as Sweden, Finland, Denmark, Switzerland, Austria and Italy there is no legal minimum wage. There, the government leaves the employer associations and unions to set a minimum wage in collective bargaining. New Zealand was the first country to introduce the minimum wage in 1894, and 192 more followed until 2019. Many of these countries have very complex systems, for example India has more than 1200 different minimum wage rates. Hardly any other labour market policy measure has been discussed as extensively as the introduction of the minimum wage of EUR 8.50 gross per hour on January 1, 2015 in Germany. For the supporters it was a long overdue step to offer low-wage earners a higher wage and thus a better standard of living. However, economists warned in advance that introducing minimum wages would only have negative consequences, especially when it comes to employment. Various studies have predicted that it could result in the loss of thousands of jobs. For example, the Ifo Institute in Munich forecasted a threat to up to 900 thousand jobs. Opponents of the minimum wage also pointed out that low-skilled workers would find it difficult to get into employment and would make little contribution to fighting poverty. The aim of this paper is to analyse how the market in Germany reacted to the introduction of the minimum wage. Also the history and structure of the minimum wage is described and the different economic theories are compared.

The Unbearable Stability of the German Wage Structure

Author: Eswar Prasad

Publisher: International Monetary Fund

Published: 2000

Total Pages: 70

ISBN-13:

DOWNLOAD EBOOK →

The objective of this paper is to document the evolution of the German wage structure over the period 1984-97. The paper also investigates the roles of various factors that could have influenced patterns of changes in the wage structure. While a documentation of the evolution of the wage structure in Germany is interesting in its own right, the analysis in this paper, by facilitating comparisons with changes in the wage structures of other industrial countries, could potentially provide important clues to understanding the poor functioning of the German labor market in recent years. In particular, the analysis sheds light on the reasons behind and possible solutions for a particularly troubling problem, the high and rising rate of nonemployment among low-skilled workers.

High-Impact Minimum Wages and Heterogeneous Regions

Author: Philipp vom Berge

Publisher:

Published: 2013

Total Pages: 41

ISBN-13:

DOWNLOAD EBOOK →

We estimate the effects on wage and employment growth rates of the introduction and subsequent increases of a substantial minimum wage in the main construction industry of Germany. Using a regional dataset constructed from individual employment histories, we exploit the spatial dimension and border discontinuities of the regional data to account for spillovers between districts and unobserved heterogeneity at the local level. The results indicate that the minimum wage increased the wage growth rate for East Germany but did not have a significant impact on the West German equivalent.The estimated effect on the employment growth rate reveals a contraction in the East of about 2.6 to 3.1 percentage points for a one-standard-deviation increase in the minimum-wage bite, amounting to roughly half of the overall decline in the growth rate, but no significant change is observed for the West.