Ongoing Research Projects

Effects of the statutory minimum wage on wages and working hours 

The aim of the study is to determine the effects of the recent increases in the statutory minimum wage on hourly and monthly wages, various wage components, working hours, and the volume of work. Data from the earnings survey (VE) of the Federal Statistical Office for the years 2022 to 2025 will be used for this purpose. In particular, the effects of the minimum wage adjustments to €12.41 in 2024 and €12.82 in 2025 will be evaluated. 

Project implementation: Institute for Applied Economic Research (IAW) 

Effects of the statutory minimum wage on employment and unemployment 

The aim of the research project is to identify the causal effects of the introduction of the minimum wage and increases in the statutory minimum wage on employment and unemployment. The project will be divided into two parts in order to evaluate the effects of the statutory minimum wage using different methods. The first part of the project will examine the effects by comparing units of observation affected by different levels of the minimum wage. The impact of the minimum wage on employment and unemployment for young people aged 18 to 25 and for people without German citizenship will be examined in depth. The second part of the project will use the analytical potential of the new earnings survey (VE) to examine the effects using and further developing a bunching approach. 

Project implementation: Evaluation Office Caliendo & Partner 

Effects of the statutory minimum wage on the transfer benefits by employed persons

The aim of this project is to make statements on developments in social benefit receipt following the increase in the statutory minimum wage in October 2022. The focus is on working person in receipt of transfer benefits for job seekers. The data is based on administrative data from the "Sample of Integrated Welfare Benefit (SIG)”. 

Project implementation: Institute for Employment Research (IAB) 

The significance of the statutory minimum wage for corporate recruitment and training

The aim of the study is to identify and describe the effects of the statutory minimum wage on corporate recruitment and training since the minimum wage was raised to €12 in October 2022, using a qualitative research design. Variables of interest include the demand for and supply of employees in companies, the recruitment and integration of migrants and refugees, the scope, duration, and type of internships carried out in companies, changes in the willingness to provide training in occupations requiring lower qualifications, and companies' views on competitive conditions. 

Project implementation: Institute for Social Research (ISG) 

Effects of the minimum wage on the reservation wage and awareness of the minimum wage based on OPAL data 

The aim of the research project is to contribute to the understanding the effects of the minimum wage on labour supply and to answer the key question of what effects changes in the minimum wage have on the reservation wage. In addition to the minimum wage, the study will consider the influence of the level of earnings-replacement benefits or transfer income, regional unemployment, the regional job opportunity, and the duration of individual unemployment. Furthermore, panel data will be used to examine awareness of the minimum wage, the use of information services and channels, and the effectiveness of measures to improve awareness of the minimum wage over a longer period of time. 

Project implementation: Institute for Employment Research (IAB) 

Effects of the statutory minimum wage on collective bargaining agreements 

The aim of the research project is to examine the causal effects of the introduction and increases in the statutory minimum wage between 2015 and 2026 on the content of collective bargaining agreements. Since previous studies on the effects of the minimum wage on collective bargaining have been based primarily on qualitative research, this project aims to examine the quantitatively measurable effects of the minimum wage on collective agreements since its introduction. The study will be based on a collective agreement database that comprehensively maps collective bargaining in Germany and covers the entire study period. 

Project implementation: Hertie School 

Effects of the statutory minimum wage on competitive conditions and solo self-employment 

The aim of the project is to analyze the effects of the statutory minimum wage on solo self-employment. Furthermore, the project will examine the effects of the minimum wage on competitive conditions, particularly on market entry and exit, the intensity of competition, and productivity in regions and economic sectors that are affected to varying degrees by the minimum wage. 

Project implementation: Leibniz Centre for European Economic Research (ZEW) 

Special survey and analysis of the Socio-Economic Panel (SOEP) on working hours of employees in the minimum wage sector 

As part of the research project, SOEP analyses previously carried out on behalf of the Minimum Wage Commission are to be updated and continued. In addition, the information on working hours collected in the SOEP will be expanded and validated as part of the SOEP survey in 2024. In both project packages, the study population represents the group of people who are entitled to receive the minimum wage. The minimum wage impact will be based on the respective minimum wage level, taking into account various ranges. 

Project implementation: DIW Econ GmbH 

Effects of the statutory minimum wage on businesses and companies 

The aim of this research project is to identify the causal effects of the statutory minimum wage on the competitiveness and competitive conditions of businesses and companies. Based on the research work of Bossler et al. (2022), the target variables examined therein will be investigated for the period from 2021 to 2026. The focus will be on evaluating the minimum wage increases in 2022 and 2025. Furthermore, the impact of the minimum wage increases on businesses and employees during the study period will be descriptively presented using the IAB Establishment Panel. The minimum wage increases in 2022, January 1, 2025, and January 1, 2027, will be taken into account. The results on the impact of the minimum wage will be presented differentiated by company size, region, and industry. 

Project implementation: Institute for Employment Research (IAB)