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 paper examines the employment effects of raising minimum wages for apprentices in Germany. The authors exploit the implementation of an anti-discrimination law that prohibited wage-setting discrepancies based on age, a practice that was historically common for apprentices in certain economic sectors. Using administrative data on apprenticeship contracts, the authors exploit the resulting variations in minimum wage increases across age, sector, and state levels to estimate a triple difference-in-differences model. The findings indicate that, while overall apprentice employment was not significantly affected by the increase in minimum wages, apprentices with lower educational backgrounds experienced significant negative employment effects.

Keywords: Minimum wage; Apprenticeship market; Training; Collective bargaining; Triple difference (search for similar items in EconPapers)
JEL-codes: J2 J23 J31 J38 J51 (search for similar items in EconPapers)
Pages: 32 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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