The Employment Effect of Industry-Specific, Collectively-Bargained Minimum Wages

Hanna Frings

No 348, Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen

Abstract: This paper estimates the employment effects of industry-specific, collectively-bargained minimum wages in Germany for two occupations associated with the construction sector. I propose a truly exogenous control group in contrast to the control group design used in the literature. Further, a difference-in-differences-in-differences estimator is presented as a robustness test for occupation-specific and/or industry-specific, timevarying, unobserved heterogeneity. I do not find a significantly negative employment effect, even though the minimum wage is binding in (East) Germany. This result can be explained by substitution effects, noncompliance and models of monopsonic competition.

Keywords: Minimum wage; monopsonic competition; difference-in-differences (search for similar items in EconPapers)
JEL-codes: J38 J42 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (13)

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Related works:
Journal Article: The Employment Effect of Industry-Specific, Collectively Bargained Minimum Wages (2013)
Journal Article: The Employment Effect of Industry- Specific, Collectively Bargained Minimum Wages (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwirep:348

DOI: 10.4419/86788401

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