Turning the Switch: An Evaluation of the Minimum Wage in the German Electrical Trade Using Repeated Natural Experiments

Bernhard Boockmann; Raimund Krumm; Pia Rattenhuber; Michael Neumann

doi:10.1111/geer.12016

Article

Turning the Switch: An Evaluation of the Minimum Wage in the German Electrical Trade Using Repeated Natural Experiments

Bernhard Boockmann , Raimund Krumm , Pia Rattenhuber and Michael Neumann

Published/Copyright: November 30, 2019

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From the journal German Economic Review Volume 14 Issue 3

Abstract

The introduction, abolition and subsequent re-introduction of the minimum wage in the German electrical trade gave rise to series of natural experiments, which are used to study minimum wage effects. We find similar impacts in all three cases on wages, employment and the receipt of public welfare benefits. Average wages are raised by the minimum wage in East Germany, but there is almost no evidence for employment effects. The results also show that the wage effect is quickly undone after the abolition of the minimum wage.

Keywords: Minimum wage; labor market regulation; employment

Published Online: 2019-11-30

Published in Print: 2013-08-01

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Articles in the same Issue

https://doi.org/10.1111/geer.12016

Keywords for this article

Minimum wage; labor market regulation; employment