Labor Markets, Education, Population

Project: Effects of the statutory minimum wage on the wage structure and hours worked

Project Duration

12/2018 - 01/2020 (current)

Commissioned by

Geschäfts- und Informationsstelle für den Mindestlohn/BAuA

Project Team (RWI)

Prof. Dr. Ronald Bachmann (Chief), Gökay Demir, Rahel Felder (Chief), Dr. Hanna Frings, Dr. Matthias Giesecke, Christina Vonnahme

Cooperation

Institut für Angewandte Wirtschaftsforschung (IAW), Forschungsinstitut zur Zukunft der Arbeit (IZA)

Summary

The aim of the project is to evaluate the effects of the statutory minimum wage on working hours and wages in Germany. We account for both, the introduction of the minimum wage at 8.50 Euro in 2015 and the minimum wage increase to 8.84 Euro in 2017. The core data set for the analysis is the Socio-economic Panel (SOEP). In survey data, hourly wage measures are potentially biased. Therefore, we test the plausibility of the SOEP indicators. In particular, we conduct a comparison with the (structure of) earnings survey (VSE/VE). Moreover, we analyse the impact of the statuary minimum wage on wage mobility, special payments and fringe benefits as well as worker satisfaction, motivation and social participation.

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