Does organizational context matter? An examination of the factors influencing employees’ judgments of minimum wage increases

Matthias Dütsch, Monika Senghaas, Gesine Stephan and Olaf Struck
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Matthias Dütsch: BAuA und Universität Bamberg
Monika Senghaas: Institute for Employment Research (IAB), Nuremberg, Germany
Gesine Stephan: Institute for Employment Research (IAB), Nuremberg, Germany
Olaf Struck: Universität Bamberg

Journal for Labour Market Research, 2025, vol. 59, Article 6

Abstract: "This article presents novel findings on company factors that determine judgments regarding the fairness of minimum wage increases. Drawing on minimum wage and organizational justice research, we conducted a factorial survey among German employees. It seems that the internal wage structure plays a crucial role because raising only the pay of minimum wage workers and not that of other employees causes a minimum wage increase to be rated as less fair. While a hiring freeze does not negatively influence fairness judgments, layoffs do. Finally, if a minimum wage increase adversely affects a company’s economic situation, respondents assess it as less fair." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; Auswirkungen; Betrieb; Entlassungen; Gerechtigkeit; abhängig Beschäftigte; Lohnerhöhung; Lohnstruktur; Mindestlohn; soziale Gerechtigkeit; Arbeitsintensität; Verteilungsgerechtigkeit; Wahrnehmung; wirtschaftliche Situation; Arbeitsplatzsicherheit; 2020-2020 (search for similar items in EconPapers)
Date: 2025-03-04
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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabjlr:v:59:p:art.06

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DOI: 10.1186/s12651-025-00392-3

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