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Balance after Five Years: What Has the Legal Minimum Wage Achieved?
Andreas Knabe, Ronnie Schöb, Marcel Thum, Oliver Bruttel, Benjamin Börschlein, Bossler Mario, Felix Pakleppa, Holger Bonin, Nico Pestel, Alexandra Fedorets, Marco Caliendo
ifo Institut, München, 2020
ifo Schnelldienst, 2020, 73, Nr. 04, 03-28
ifo Institut, München, 2020
ifo Schnelldienst, 2020, 73, Nr. 04, 03-28
Since January 1, 2015, a statutory minimum wage has been in force throughout Germany. What employment effects can be observed after five years? Did the minimum wage cost jobs, and how much work volume did the minimum wage displace? What adjustment channels have companies used to avoid redundancies? Has it been possible to reduce the number of transfer recipients and the risk of poverty? Will the coronavirus crisis prove to be a stress test for the minimum wage? Our authors discuss the answers to these questions.
Keywords: Mindestlohn, Lohnpolitik, Arbeitsmarkt, Beschäftigungseffekt, Unternehmen
JEL Classification: J310, L260
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ifo Schnelldienst 04/2020: Quarantine the World
ifo Institut, München, 2020