The German Minimum Wage: Effects on Productivity, Profitability, and Investments

Bossler M, Gürtzgen N, Lochner B, Betzl U, Feist L (2019)

Publication Type: Journal article

Publication year: 2019

Journal

Jahrbücher für Nationalökonomie und Statistik Lucius & Lucius / DeGruyter

DOI: 10.1515/jbnst-2018-0074

Abstract

In this article, we analyze the effects of the introduction of the German minimum wage using difference-in-differences estimations applied to the IAB Establishment Panel. The treatment effects on the treated establishments show a significant increase in personnel costs. When we analyze the effects of the minimum wage on the net sales of intermediates, we observe a reduction, which is fully explained by the increase in wage costs induced by the minimum wage. The results do not point to effects on establishment-level productivity or capital investments. Looking at investments in human capital, we do not observe any effects on apprenticeship offers or the placement of apprentices. If anything, the results point at a slight reduction in the provision of further training.

Authors with CRIS profile

Benjamin Lochner Lehrstuhl für Volkswirtschaftslehre, insbesondere Makroökonomik

Involved external institutions

Institut für Arbeitsmarkt- und Berufsforschung (IAB) der Bundesagentur für Arbeit (BA) DE Germany (DE)

How to cite

APA:

Bossler, M., Gürtzgen, N., Lochner, B., Betzl, U., & Feist, L. (2019). The German Minimum Wage: Effects on Productivity, Profitability, and Investments. Jahrbücher für Nationalökonomie und Statistik. https://doi.org/10.1515/jbnst-2018-0074

MLA:

Bossler, Mario, et al. "The German Minimum Wage: Effects on Productivity, Profitability, and Investments." Jahrbücher für Nationalökonomie und Statistik (2019).

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