Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/173202 
Year of Publication: 
2017
Series/Report no.: 
IWH Discussion Papers No. 31/2017
Publisher: 
Leibniz-Institut für Wirtschaftsforschung Halle (IWH), Halle (Saale)
Abstract: 
This paper examines the effects of the minimum wage introduction in Germany in 2015 on the skilled crafts sector in Saxony-Anhalt. Using novel survey data on the skilled crafts sector in Saxony-Anhalt, we examine three questions: (1) How many employees are affected by the minimum wage introduction in the skilled crafts sector in Saxony- Anhalt? (2) What are the effects of the minimum wage introduction? (3) How have firms reacted to wage increase? We find that about 8% of all employees in the skilled crafts sector in Saxony-Anhalt are directly affected by the minimum wage introduction. A difference-in-difference estimation reveals no significant employment effects of the minimum wage introduction. We test for alternative adjustment strategies and observe a significant increase of output prices.
Subjects: 
minimum wage
employment
difference-in-differences estimations
Saxony-Anhalt
JEL: 
C31
E24
J23
J38
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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