The minimum wage effects on skilled crafts sector in Saxony-Anhalt

Hans-Ulrich Brautzsch and Birgit Schultz

No 31/2017, IWH Discussion Papers from Halle Institute for Economic Research (IWH)

Abstract: This paper examines the effects of the minimum wage introduction in Germany in 2015 on the skilled crafts sector in Saxony-Anhalt. Using novel survey data on the skilled crafts sector in Saxony-Anhalt, we examine three questions: (1) How many employees are affected by the minimum wage introduction in the skilled crafts sector in Saxony- Anhalt? (2) What are the effects of the minimum wage introduction? (3) How have firms reacted to wage increase? We find that about 8% of all employees in the skilled crafts sector in Saxony-Anhalt are directly affected by the minimum wage introduction. A difference-in-difference estimation reveals no significant employment effects of the minimum wage introduction. We test for alternative adjustment strategies and observe a significant increase of output prices.

Keywords: minimum wage; employment; difference-in-differences estimations; Saxony-Anhalt (search for similar items in EconPapers)
JEL-codes: C31 E24 J23 J38 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-eur and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:iwhdps:312017

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