RWI Positionen 58
Falsche Hoffnungen - Der Mindestlohn gibt kaum Impulse für die Konjunktur
by Roland Döhrn
05/2014, 8 S./p., ISBN 978-3-86788-552-2download
The German government pins high hopes on the introduction of a uniform statutory minimum wage. In its latest annual economic report the government points out that a minimum wage would, on the one hand, make income distribution more equal and, on the other hand, stimulate aggregate demand. While there have been extensive discussions in the economic literature about the effects of a minimum wage on employment, which is expected to be negative, and on income distribution, which is mostly considered to be small, the impact on aggregate demand, however, has hardly been discussed so far. This paper fills that gap for Germany, and draws the conclusion that a statutory minimum wage would not significantly stimulate demand.