Turning the Switch: An Evaluation of the Minimum Wage in the German Electrical Trade Using Repeated Natural Experiments

Boockmann Bernhard, Krumm Raimund, Rattenhuber Pia and Neumann Michael
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Boockmann Bernhard: Institute for Applied Economic Research (Institut für Angewandte Wirtschaftsforschung, IAW),Tübingen, Germany
Krumm Raimund: Institute for Applied Economic Research (Institut für Angewandte Wirtschaftsforschung, IAW),Tübingen, Germany
Rattenhuber Pia: Institute for Applied Economic Research (Institut für Angewandte Wirtschaftsforschung, IAW),Tübingen, Germany
Neumann Michael: German Institute for Economic Research (Deutsches Institut für Wirtschaftsforschung, DIW), Mohrenstraße 58,Berlin, Germany

German Economic Review, 2013, vol. 14, issue 3, 316-348

Abstract: The introduction, abolition and subsequent re-introduction of the minimum wage in the German electrical trade gave rise to series of natural experiments, which are used to study minimum wage effects. We find similar impacts in all three cases on wages, employment and the receipt of public welfare benefits. Average wages are raised by the minimum wage in East Germany, but there is almost no evidence for employment effects. The results also show that the wage effect is quickly undone after the abolition of the minimum wage.

Keywords: Minimum wage; labor market regulation; employment (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (3)

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DOI: 10.1111/geer.12016

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