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Title:Building the minimum wage: Germany's first sectoral minimum wage and its impact on wages in the construction industry PDF Logo
Authors:Rattenhuber, Pia
Issue Date:2011
Series/Report no.:Discussion papers // German Institute for Economic Research 1111
Abstract:The very first minimum wage in Germany was introduced in 1997 for blue-collar workers in sub-sectors of the construction industry. In the setting of a natural experiment blue-collar workers in neighboring 4-digit-industries and white-collar workers are used as control groups for differences-in-differences-in-differences estimation based on linked employer-employee data. Estimation results reveal a sizable positive average impact on wages in East Germany and no effect in West Germany. Size and significance of effects are not homogeneous across wage regimes (individual vs. collective contracts) and across the distribution suggesting spillover effects to wages where the minimum is not binding.
Subjects:minimum wage
construction sector
linked employer-employee data
differences-in-differences-in-differences
unconditional quantile regression
JEL:C21
J18
J38
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des DIW
DIW-Diskussionspapiere

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