Employment Adjustments Following Rises and Reductions in Minimum Wages: New Insights From a Survey Experiment

Bossler M, Oberfichtner M, Schnabel C (2019)

Publication Language: English

Publication Type: Journal article

Publication year: 2019

Journal

Labour Blackwell Publishing Inc.

Book Volume: 34

Pages Range: 323-346

Journal Issue: 3

DOI: 10.1111/labr.12168

Abstract

The effects of large minimum wage increases are still unknown. Our survey experiment randomly assigns increases or decreases in minimum wages to German establishments and asks about employers’ expectations concerning employment adjustments. The larger the increase in the minimum wage is, the larger the expected reduction in employment. The reduction is stronger in plants that are more strongly affected by the current national minimum wage and in plants that have neither collective agreements nor a works council. In contrast, employment expectations do not increase if the minimum wage is reduced. This mainly reflects that few plants would cut wages.

Authors with CRIS profile

Michael Oberfichtner
Claus Schnabel Lehrstuhl für Volkswirtschaftslehre, insbesondere Arbeitsmarkt- und Regionalpolitik

Involved external institutions

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

How to cite

APA:

Bossler, M., Oberfichtner, M., & Schnabel, C. (2019). Employment Adjustments Following Rises and Reductions in Minimum Wages: New Insights From a Survey Experiment. Labour, 34(3), 323-346. https://dx.doi.org/10.1111/labr.12168

MLA:

Bossler, Mario, Michael Oberfichtner, and Claus Schnabel. "Employment Adjustments Following Rises and Reductions in Minimum Wages: New Insights From a Survey Experiment." Labour 34.3 (2019): 323-346.

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