Rather a trigger than a cause of change.Responses of firms and workers to the statutory minimum wage in Germany
Andreas Koch (),
Andrea Kirchmann (),
Marcel Reiner (),
Tobias Scheu () and
Holger Bonin ()
Additional contact information
Andrea Kirchmann: http://www.iaw.edu/index.php/-289/member/150
Marcel Reiner: http://www.iaw.edu/index.php/-289/member/681
Tobias Scheu: http://www.iaw.edu/index.php/-289/member/666
No 132, IAW Discussion Papers from Institut für Angewandte Wirtschaftsforschung (IAW)
The introduction of the statutory minimum wage in Germany directly affected firms with wage earners paid less than EUR 8.50 per hour. This paper studies a variety of responses by employers and employees to adapt to this shock, in particular changes in compensation packages, employment at the extensive and intensive margin, working conditions, and position in product markets. Strategies of non-compliance are also in focus. The analysis is qualitative and based on 131 semi-structured, in-depth interviews with firm representatives, workers and members of work councils. A key finding is that while many firms and workers changed behavior with the introduction of the minimum wage, these changes are less response to concomitant changes in labor costs. Rather, it appears that the reform at many workplaces served as a catalyst to trigger or accelerate pending change processes.
Keywords: Minimum wage; Interview-based approach; Germany (search for similar items in EconPapers)
JEL-codes: J08 J28 J81 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:iaw:iawdip:132
Access Statistics for this paper
More papers in IAW Discussion Papers from Institut für Angewandte Wirtschaftsforschung (IAW) Contact information at EDIRC.
Bibliographic data for series maintained by Rolf Kleimann ().