Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/158752
Authors: 
Müller, Kai-Uwe
Steiner, Viktor
Year of Publication: 
2011
Citation: 
[Journal:] Zeitschrift für ArbeitsmarktForschung – Journal for Labour Market Research [ISSN:] 2510-5027 [Volume:] 44 [Year:] 2011 [Issue:] 1/2 [Pages:] 181-195
Abstract (Translated): 
In this contribution employment effects of wage subsidies and a minimum wage are analyzed for Germany. Existing studies for the construction sector and simulations of a statutory minimum wage unanimously point to employment losses of a general minimum wage for Germany. The magnitude of the negative employment effects depends on the minimum wage level, reactions on the goods market and the coverage of the minimum wage (inclusion of apprentices, marginally employed). For a minimum wage of 7.5 EURO per hour we estimate a total employment loss of 220,000 individuals, mostly in jobs not covered by social security. Evaluations of existing wage subsidies in Germany find only minor labor supply incentives. Here, the revenue-neutral 'employment bonus' which subsidizes small hourly wages and not low wage incomes is considered. The 'employment bonus' would induce an increased labor supply of 80,000 persons at the extensive and 420,000 full-time equivalents at the intensive margin. If an employee-oriented wage subsidy is combined with a statutory minimum wage its labor supply effects were rendered ineffective. Simulation results show that in this case employer-oriented wage subsidies could compensate higher wage costs and partially diminish employment losses induced by the minimum.
Subjects: 
Lohnsubvention
Mindestlohn
Beschäftigungseffekte
Lohnpolitik
Subventionspolitik
Geringverdiener
Arbeitsplatzabbau
Entlassungen
Arbeitskosten
Kombilohn
Baugewerbe
Arbeitskräfteangebot
Arbeitskräftenachfrage
JEL: 
H24
H31
I38
J22
J23
Persistent Identifier of the first edition: 
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.