The Devil is in the Details: Heterogeneous Effects of the German Minimum Wage on Working Hours and Minijobs
SSRN Electronic Journal(2024)
摘要
In 2015, Germany introduced a national minimum wage. While the literature
agrees on at most limited negative effects on the overall employment level, we
go into detail and analyze the impact on the working hours dimension and on the
subset of minijobs. Using data from the German Structure of Earnings Survey in
2010, 2014, and 2018, we find empirical evidence that the minimum wage
significantly reduces inequality in hourly and monthly wages. While various
theoretical mechanisms suggest a reduction in working hours, these remain
unchanged on average. However, minijobbers experience a notable reduction in
working hours which can be linked to the specific institutional framework.
Regarding employment, the results show no effects for regular jobs, but there
is a noteworthy decline in minijobs, driven by transitions to regular
employment and non-employment. The transitions in non-employment imply a wage
elasticity of employment of -0.1 for minijobs. Our findings highlight that
the institutional setting leads to heterogeneous effects of the minimum wage.
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