Minimum Wage Commission

Completed projects 2018


The effects of minimum wage on wage distribution

The research project aims at identifying the causal effects minimum wage has on wage distribution and includes possible spill-over and compression effects. Data from the German Socio-Economic Panel (SOEP) are analysed.

Contractors: Deutsches Institut für Wirtschaftsforschung (DIW Berlin) in cooperation with the Evaluation Office Caliendo (Prof. Dr. Marco Caliendo, University Potsdam)

Final report (in German):
Abschlussbericht "Auswirkungen des Mindestlohns auf die Lohnstruktur"

The effects of minimum wage on poverty risk and the situation of employees receiving top-up social benefits ("Aufstocker")

The project analyses the minimum wage effects on poverty risk and the situation of individuals and households receiving in-work benefits (Arbeitslosengeld II). The empirical research is based on data from the Panel Labour Market and Social Security (PASS). In addition, the study draws from administrative data of the German Federal Employment Agency and the IAB Arbeitsmarktspiegel.

Contractor: Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nuremberg

Final report (in German):
Auswirkungen des Mindestlohns auf die Armutsgefährdung und die Lage von erwerbstätigen ALG II-Bezieherinnen und -Beziehern

Minimum wage effects on employment, working time and unemployment

The research project evaluates the causal effects of minimum wage on employment, working time and unemployment, using various quantitative econometric techniques. The study is based on the following data sets: the German Federal Employment Agency’s employment statistics, IAB Establishment Panel, German Socio-Economic Panel (GSOEP) and the German Federal Statistical Office’s Structure of Earnings Survey (VSE).

Contractors: Institut zur Zukunft der Arbeit (IZA), Bonn, in cooperation with Deutsches Institut für Wirtschaftsforschung (DIW Berlin) and the Evaluation Office Caliendo (Prof. Dr. Marco Caliendo, University Potsdam)

Final report (in German):
Abschlussbericht "Auswirkungen des Mindestlohns auf ­Beschäftigung, Arbeitszeit und Arbeitslosigkeit"

Minimum wage effects on companies

The research project’s goal is to identify minimum wage’s causal effects on companies' competiveness and the conditions of competition. This includes the analyses of a number of different adjustment channels, e.g. the demand for labour or the investment into machinery and human capital. The analyses are based IAB Establishment Panel data.

Contractor: Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nuremberg

Final report (in German):
Abschlussbericht "Auswirkungen des Mindestlohns auf ­Betriebe und Unternehmen"

Companies' and employees' adjustment patterns in the wake of the introduction of minimum wages

The research project identifies and describes companies' and employees' adjustments in the wake of the statutory minimum wage's introduction. It will provide a better understanding of changes in employees’ work environment and their preferences and attitudes as well as of company-level adjustments with respect to, e.g. working time, organisation of work or personnel management. The qualitative study is based on guided interviews with company decision-makers, with employees and with work councils in five German regions.

Contractors: Institut für Angewandte Wirtschaftsforschung (IAW), Tubingen, in cooperation with Institut zur Zukunft der Arbeit (IZA), Bonn and SOKO Institut, Bielefeld

Final report (in German):
Abschlussbericht "Verhaltensmuster von Betrieben und ­Beschäftigten im Zuge der Einführung des Mindestlohns"

Macroeconomic effects of minimum wage in a Keynesian economic framework

The study carves out the main theoretical assumptions of Keynesian theories and the derived possible macroeconomic effects of minimum wage. This includes short-term effects such as business cycle stimuli as well as mid- to long-term effects, e.g. economic growth. The research also includes a quantitative estimate of macroeconomic effects.

Contractor: Institut für Makroökonomie und Konjunkturforschung (IMK)

Final report (in German):
Abschlussbericht "Makroökonomische Folgen des ­Mindestlohns aus keynesianisch geprägter Perspektive"

Macroeconomic effects of minimum wage in a neoclassical economic framework

The study carves out the main theoretical assumptions of neoclassical economic theories and the derived possible macroeconomic effects of minimum wage. This includes short-term effects such as business cycle stimuli as well as mid- to long-term effects, e.g. economic growth. The research also includes a quantitative estimate of the effects.

Contractor: RWI - Leibniz-Institut für Wirtschaftsforschung, Essen

Final report (in German):
Abschlussbericht "Makroökonomische Folgen des ­Mindestlohns aus neoklassisch geprägter Perspektive"

Minimum wage and seasonal work

Based on a descriptive analysis of the available employment data from the German Federal Employment Agency, the study examines the effects of the introduction and adjustment of sector-specific minimum wages and the statutory minimum wage, respectively, on seasonal work. In addition, it provides an overview over the available research in this field and valid study designs for further research projects in the field will be developed.

Contractor: Institut für Angewandte Wirtschaftsforschung (IAW), Tubingen

Final report (in German):
Abschlussbericht "Auswirkungen des Mindestlohns im ­Bereich der Saisonarbeit"

Comparison of data sources for the analysis of labour market transitions

The study focuses on the question which data sets are promising for the analyses of minimum wage induced transitions between different labour market statuses. The following datasets are included: Integrated Employment Biographies (IEB), Socio-Economic Panel (SOEP), Panel Labour Market and Social Security (PASS), Microcensus and National Educational Panel Study (NEPS). Of particular interest is their usability, e.g. sample size and distinction between groups.

Contractors: RWI - Leibniz-Institut für Wirtschaftsforschung, Essen, in cooperation with Institut für Angewandte Wirtschaftsforschung (IAW), Tubingen

Final report (in German):
Abschlussbericht "Vergleich von Datenquellen für eine ­Analyse von Übergängen am Arbeitsmarkt"