The Employment Effect of Industry- Specific, Collectively Bargained Minimum Wages
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Hanna Frings
Abstract
This study estimates the employment effects of industry-specific, collectively bargained minimum wages in Germany for two occupations associated with the construction sector. I propose a truly exogenous control group in contrast to the control group design used in the literature. Further, a difference-in-differences-in-differences estimator is presented as a robustness test for occupation-specific and/or industry-specific, time-varying, unobserved heterogeneity. I do not find a significantly negative employment effect, even though the minimum wage is binding in (East) Germany. Possible explanations include substitution effects, non-compliance and models of monopsonic competition.
© 2019 by Walter de Gruyter Berlin/Boston
Articles in the same Issue
- Special Issue on the Economic Effects of Minimum Wages in Germany: Editorial
- The Employment Effect of Industry- Specific, Collectively Bargained Minimum Wages
- The Minimum Wage Affects Them All: Evidence on Employment Spillovers in the Roofing Sector
- Turning the Switch: An Evaluation of the Minimum Wage in the German Electrical Trade Using Repeated Natural Experiments
- Labour Market Segmentation: Standard and Non-Standard Employment in Germany
- Asset Returns, the Business Cycle and the Labor Market
Articles in the same Issue
- Special Issue on the Economic Effects of Minimum Wages in Germany: Editorial
- The Employment Effect of Industry- Specific, Collectively Bargained Minimum Wages
- The Minimum Wage Affects Them All: Evidence on Employment Spillovers in the Roofing Sector
- Turning the Switch: An Evaluation of the Minimum Wage in the German Electrical Trade Using Repeated Natural Experiments
- Labour Market Segmentation: Standard and Non-Standard Employment in Germany
- Asset Returns, the Business Cycle and the Labor Market