The employment effects of raising negotiated minimum wages for apprentices

Carolin Links, Caroline Neuber-Pohl and Harald Pfeifer

No 202, Economics of Education Working Paper Series from University of Zurich, Department of Business Administration (IBW)

Abstract: This study examines the employment effects of raising the minimum wages for underage apprentices in Germany. To estimate our effects, we exploit age-, sector-, and state-level variations of negotiated minimum wage increases within a triple difference framework. Using a full sample of apprenticeship contracts, we find negative employment effects, as the number of training contracts for underage apprentices decreases significantly due to the minimum wage adjustments. Furthermore, we find that the negative employment effect increases with the size of the minimum wage adjustments. The effects are mainly driven by a reduction in contracts for low-qualified training applicants and for sectors where firms mainly follow a substitution- rather than an investment-oriented training strategy.

Keywords: Minimum wage; Apprenticeship market; Collective bargaining (search for similar items in EconPapers)
JEL-codes: J2 J23 J31 J38 J51 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2023-05
New Economics Papers: this item is included in nep-des, nep-eur, nep-inv and nep-lma
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Persistent link: https://EconPapers.repec.org/RePEc:iso:educat:0202

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